Riverpark II at the edge of Highway 87 in Downtown San Jose is finally going to start filling up! Much like the Sobrato Tower before Oracle moved in, this is a key building that has sat empty for years. Since it was completed in 2009, it has never had a tenant. Legacy Partners (the owner) was holding out for a single flagship tenant to take the whole building. However, that strategy did not pan out.
Now there are two big deals on the horizon. Both Intacct and Xactly are rapidly expanding tech companies currently located in Downtown San Jose. Each is looking to grab three floors in the building, which would amount to a grand total of 120,000 SQFT between both of them. If this comes through, it would likely put office vacancy Downtown around 17%, a huge improvement from 22% a year ago.
There has also been a 3,500 SQFT lease on the ground floor to Fremont-based Pan Pacific Bank. They focus primarily on small and mid-sized business and this would be the bank's second location.
Needless to say, this is fantastic news and could be a sign that the Downtown office market will be receiving a lot more attention.