I have a feeling that Downtown San Jose is going to become a mecca for start-ups. Given the infrastructure, low prices, and patent office in Downtown, I wouldn't be too surprised if one day we start giving Palo Alto and Mountain View a run for their money.
Regus has recently announced that they are opening a 10,000 SQFT co-working office space at 99 Almaden designed to accommodate entrepreneurs and startups in Silicon Valley. This will be Downtown's fifth co-working space. The other four are NextSpace, Pacific Business Center, the San Jose Business Center, and the Executive Suites.
On a slightly unrelated note, there are now over 90 creative firms in Downtown San Jose! Here is the list.