At long last it looks like the San Pedro Square parking structure is getting retail along San Pedro Street. New boutique shops will take a small number of parking spaces on the first floor while "curb cafes" will extend the experience along the street itself. This should help make the area even more lively and pedestrian friendly.
In 2015, the SJDA was awarded a Knight Cities Challenge grant towards making this project a reality. Construction is scheduled to begin this July and will hopefully be done by September. For more info, check out the Downtown San Jose Construction Brief.