Sprouts Claims the Old Orchard Supply on Cottle, Opening Early 2028

Sprouts Farmers Market signed a lease for the empty Orchard Supply Hardware box at 5651 Cottle Road. The grocer told the Business Journal it expects to open in early 2028. A public hearing on the remodel is set for September 15. Dollinger Properties bought the 4.3-acre site for $7.3 million in 2025 after the hardware store went dark in 2018.

The work would add about 5,568 square feet to the old building, tear out 1,200 square feet of mezzanine, recut the floor into four tenant spaces, and redo the parking circulation. One of those spaces is slated for a preschool or daycare. Sprouts would not name the operator. Earlier city files had floated a Goddard preschool and a fitness tenant; those plans appear to have shifted toward grocery plus child care.

This would be Sprouts’ sixth store inside San Jose city limits and one of more than twenty in the Bay Area. The lot sits inside Orchard Town and Country, the outdoor center that already holds Baskin-Robbins, Greek Spot, and Castillo’s Mexican Restaurant. Safeway and Target sit close enough that another grocer has to earn the trip. T&T just opened at Westgate. Gus’s is aiming at the old Whole Foods in Los Gatos for 2027. South San Jose is getting the same grocery scramble as the west side.

Source: Silicon Valley Business Journal

Council Directs a Closer Look at Neighborhood Housing Density

San Jose City Council spent hours on Aug. 18 hearing from residents before voting 8-3 to study several density options rather than lock in a single number. Staff will now analyze 16, 24 and 32 dwelling units per acre in Residential Neighborhood areas that currently sit at about eight units per acre, along with parking standards. A finished proposal is slated to return for a final decision late in 2027.

The debate sits inside the four-year review of Envision San José 2040. Planners had floated a jump to 32 units per acre on most of the city’s residential land as a way to add “missing middle” homes: duplexes, fourplexes, townhomes and small multifamily buildings that sit between a single house and a large apartment block. Mixed-use corridors and Urban Residential areas, including parts of Downtown San Jose, also appeared in the package with higher proposed ranges and extra stories.

State housing targets explain the urgency. San Jose must plan for more than 62,000 additional units between 2023 and 2031. Production so far has lagged that pace, and large apartment projects have struggled to find financing. City housing officials told the council that smaller, scattered buildings can pencil out without heavy public subsidy and can give middle-income households more choices.

Neighbors who filled the chamber raised traffic, street parking and the look of established blocks. Several council members asked staff to treat the city as a collection of different places rather than one uniform map. The study period will include more outreach, environmental review and work on design standards so any future rules can respect existing street patterns while still adding homes.

Anyone who cares about where the next generation of San Jose families will live now has more than a year to follow the details. The city that already mixes Downtown towers with tree-lined streets is trying to decide how those two scales can grow together. That conversation, handled carefully, is how San Jose keeps room for teachers, nurses, restaurant crews and young households without losing the neighborhoods people already love.

Additional information on the General Plan Four-Year Review is available through the City of San Jose Planning Division.

Source: Silicon Valley Business Journal

City Council Rezones IBM Almaden Site to Balance Open Space and Future Use

San Jose City Council voted 9-2 on Tuesday to rezone the former IBM Almaden Research Center property at 650 Harry Road. The decision splits the site into two distinct categories: 35.1 acres containing the research buildings become an industrial park zoning district, while the remaining 565.1 acres of surrounding vacant land receive open space zoning.

IBM is closing the Almaden campus and consolidating operations at its Silicon Valley Lab on Bailey Road. The property is now on the market. City planning staff reported that several real estate groups have already inquired about possible future uses for the developed portion, ranging from research and development to advanced manufacturing or general office space.

The rezoning does not approve any specific project. Land-use consultant Erik Schoennauer, representing a potential buyer, told the council the change simply aligns the site with the city’s general plan. It keeps the large open-space area in its current natural state while allowing the existing industrial buildings to return to productive use more efficiently.

More than 30 residents spoke during the public hearing, many urging the council to slow the process and raise concerns about possible data centers or other intensive industrial activity. Councilmember George Casey, whose district includes the property, argued that delaying the vote would not change the underlying need to update the zoning. Mayor Matt Mahan emphasized the shared goal of protecting the open space that IBM had long maintained.

The dual zoning aims to keep the hillsides and undeveloped land intact while giving the built campus a clearer path toward new economic activity once a buyer steps forward.

Source: SiliconValley.com

Google Advances Plans for Major Chip Research Hub in North San Jose

Google continues expanding its footprint in North San Jose with a proposed 250-megawatt chip research and development facility at its Meadow Point campus on Disk Drive. The project would house computing labs dedicated to testing next-generation chip technology, supporting the company’s broader work in artificial intelligence and custom silicon.

The scale of the electricity demand stands out. Filings show the facility could draw more power than the average load of Marin County and roughly half that of San Mateo County. Connecting it to the grid requires a high-voltage switching station, underground transmission lines, and ties into the Newark-NRS transmission project, along with additional regional upgrades. Google has indicated it will fund the infrastructure needed for its connection.

The California Public Utilities Commission had been scheduled to vote on the interconnection proposal in mid-August but postponed the decision. PG&E had requested approval earlier to keep the project on track for construction starting in early 2027 and operations by the end of 2028. Google maintains the site will serve internal research labs rather than function as a traditional data center supporting external cloud services.

This effort reflects the growing pressure on Silicon Valley’s power infrastructure as companies race to design and test the chips that drive advanced AI systems. The Meadow Point location already anchors a significant Google presence in the Alviso area, and the new labs would further solidify North San Jose as a center for specialized technical work.

Local observers will watch the regulatory process closely as California works through rules for large electricity users while balancing growth and ratepayer protections.

Source: Silicon Valley Business Journal

CityView Retail Moves Forward While Housing Plans Shift to New Construction in Downtown San Jose

Construction has started on the retail phase of Jay Paul Company’s CityView project at the corner of Park Avenue and Almaden Boulevard in Downtown San Jose. The first phase will deliver roughly 35,000 to 40,000 square feet of ground-floor retail space beneath a new parking garage, with completion targeted for early 2028.

The retail mix is still taking shape. Planners are exploring shops, restaurants, health and wellness businesses, and child-care options, with ongoing conversations about whether a smaller-format grocery could fit. Jay Paul has also talked with San Jose State University about letting students use dining credits at future CityView eateries, aiming to serve office workers, nearby residents, convention visitors, and campus traffic.

On the residential side, the company has decided to pursue ground-up construction rather than converting existing office buildings. Seismic retrofit costs for conversion proved nearly as expensive as new builds, so the team is now designing purpose-built housing with architect Solomon Cordwell Buenz. The change allows better layouts tailored specifically for apartments.

These steps keep momentum going on a large mixed-use block that sits near 200 Park and the convention center. As the retail spaces fill and residential designs firm up, the project will add more daily activity to the streets of Downtown San Jose... we'll just need a little bit of patience.

Source: SVBJ

Boutique Grocery Heads to Ground Floor of San Pedro Square Housing Towers

An independent boutique grocery store is preparing to lease 12,000 square feet of ground-floor space at the two residential towers located at 188 West St. James Street in the San Pedro Square neighborhood of Downtown San Jose. The space faces San Pedro Square Market and sits within a complex that includes a 22-story eastern tower with 337 units and a 20-story western tower with 303 units.

The market will offer fresh food, sandwiches, a salad bar, a hot bar, burritos, and additional prepared items once the street-level shell is ready. Opening is projected for sometime in 2027. Leasing efforts are being handled by Nick Goddard of Colliers.

Downtown San Jose has long operated with limited grocery options. Whole Foods on The Alameda has served the western edge since 2014, and Sakura Market opened more recently on South Market Street. A new neighborhood-focused market at this central location will give residents of the towers and surrounding blocks easier access to everyday essentials and ready-to-eat meals.

The western tower continues to market condominiums for sale while the eastern tower remains under consideration for potential workforce housing by the San Jose Unified School District. Adding a practical retail anchor at street level should help activate the base of these buildings and support the daily needs of people living and working nearby.

Source: SiliconValley.com

New Housing Community Planned for Former Oracle Campus

Valley Oak Partners continues advancing its proposal to transform 38 acres of the former Oracle campus in Santa Clara into a mixed residential community of 584 homes. The San Jose-based developer shared updated details on timeline and design during a recent community meeting, outlining plans for 48 single-family homes, 416 townhomes and 120 apartments.

The project site currently contains nearly 500,000 square feet of vacant office buildings that would be removed. Seven acres of open space would feature parks, a recreation and yoga deck, bocce court, playground and lawns. The two-story single-family homes are expected to measure between 2,400 and 2,700 square feet, while the affordable apartment building would reach six stories. Architect KTGY and landscape planner RHAA are guiding the design work. The development borders a historic park and buildings that will remain untouched.

Environmental review is underway and typically requires about a year. Valley Oak anticipates securing project approvals by mid-2027, after which it intends to purchase the land from Oracle as a joint venture with a homebuilder. Past partnerships have included firms such as Lennar, Pulte and KB Home. Demolition and infrastructure work could follow later in 2027, with home construction potentially starting in the first half of 2028.

The proposal operates under the builder’s remedy, which limits a city’s ability to reject qualifying housing projects that include a required share of lower-income units. A formal application was filed in 2024 after a preliminary filing the previous year. If the schedule holds, the redevelopment would convert underused office land into a range of housing options with substantial outdoor amenities in a location close to major employment centers and transportation routes serving San Jose and the broader South Bay.

Source: SVBJ

New Townhomes Proposed for McKendrie Street Near The Alameda

A 12-unit townhouse project is advancing at 1030-1038 McKendrie Street in Central San Jose. The plan would replace an existing surface parking lot on a 0.45-acre site with two multi-family residential buildings that include private garages and limited guest parking.

Studio Current is handling the design and application. The site sits on a block bounded by McKendrie Street, Myrtle Street, The Alameda, and West Hedding Street, placing it within walking distance of the College Park Caltrain station and inside the broader Alameda historic district.

Environmental review has been completed, with a mitigated negative declaration issued to address potential construction impacts. Work could begin as early as next March and is expected to take roughly five months once underway.

The modest-scale project adds housing in a central neighborhood already served by transit and nearby commercial activity. It represents another example of converting underused surface lots into residential use closer to existing infrastructure.

Source: SF YIMBY

Veeam Software Expands Local Footprint at Santana Row

Veeam Software plans to occupy roughly 21,000 square feet of second-floor space at Santana Row by the end of the year, converting former retail square footage once occupied by H&M into offices. The Seattle-based company, focused on data security and recovery, will take the upper level above the first-floor spots now held by Vuori and Evereve.

The move follows Veeam’s December 2025 acquisition of Securiti.ai, which had already maintained a presence in the Santana Row area for several years, most recently at the nearby Santana West office building. Prior to the deal, Veeam lacked a formal Silicon Valley office even as some employees worked remotely from the region. The new space more than doubles the nearly 11,000 square feet Securiti.ai held, giving the combined teams room to grow.

Santana Row’s mix of shopping, dining and walkable amenities has continued to draw technology and professional firms seeking an appealing workplace environment. While San Jose’s overall office vacancy rate hovered near 18 percent, the office components at the Federal Realty development reached full occupancy earlier this year. The convenient highway access and established commuting patterns for existing staff made the location a practical choice for the expansion.

Veeam’s local office will primarily support technology and product development teams. Company leaders have signaled plans to add more engineering and product talent in the coming years as AI-driven demand continues.

Source: SVBJ

Data Center Proposal Targets South San Jose Industrial Site

A two-story data center measuring 152,700 square feet could rise on a 10.1-acre vacant parcel in South San Jose’s Edenvale industrial area. The site sits near the corner of Embedded Way and Hellyer Avenue, next to Coyote Creek.

Oppidan, a real estate firm that regularly partners with Rockpoint Group, filed the proposal. Rockpoint acquired the property for $15.7 million in 2022. The facility would draw about 18 megawatts of power and sits roughly 1.3 miles from PG&E’s Santa Teresa substation, which the utility recently expanded to 80 megawatts of capacity with room for further growth.

The filing adds to a rising number of data center proposals across San Jose, including sites in North San Jose, Alviso, and other parts of the south side. These projects reflect growing demand for advanced computing infrastructure in the region.

If approved and built, the Edenvale location would convert underused industrial land into a specialized computing hub while remaining close to existing power infrastructure. The proposal remains in the early planning stages as city review continues.

Source: The Mercury News

VTA Light Rail Critical Feedback

"Classy Whale" has ridden every single major metro system in America and has just posted a brutal review of the VTA light rail system. Unfortunately, he makes a lot of fair points.

Slower average speeds and longer headways remain part of the current experience, especially outside peak hours. Those realities stem from the original design that favored median running through lower-density areas rather than fully exclusive rights-of-way. Yet the same network continues to support transit-oriented projects and future extensions that aim to densify key corridors. Riders who board at Milpitas or Diridon already gain seamless ties to regional rail, and the light rail itself delivers a car-free way to move between them.

Still, we should take a hard honest look at the system to see what is really needed to bring transit times down and frequencies up. Improvements in those key areas will translate to increased ridership and rider satisfaction.

Source: Youtube

 

Dick’s Sporting Goods Plans Large House of Sport on Blossom Hill Road

Dick’s Sporting Goods will open a nearly 99,000-square-foot House of Sport store at 920 Blossom Hill Road in San Jose, on the rebuilt site of a former Home Depot destroyed by fire in 2022. The large-format location is expected to arrive in 2027 near Westfield Oakridge.

House of Sport stores go beyond traditional retail with interactive features such as climbing walls, golf simulators, and batting cages. The company has already filed permits for exterior remodeling and tenant improvements at the property. Brokers from Econic and others handled the lease.

The new store will replace Dick’s existing roughly 40,000-square-foot location at nearby Sunrise Plaza, where the retailer has operated for decades. The Blossom Hill corridor continues to draw national brands thanks to surrounding shopping centers, residential density, and convenient access. Boot Barn is also preparing an 18,000-square-foot store in the same area.

The arrival of this expanded format gives south San Jose shoppers a more experiential place to buy sporting goods and try activities on site while reinforcing the commercial strength of the Blossom Hill corridor.

Source: SVBJ

Ensemble Breaks Ground on 301-Unit Parkside Apartments in Clara District

Ensemble Real Estate Investments has begun construction on Parkside, a 301-unit apartment complex at 2301 Calle Del Mundo in Santa Clara’s Clara District. The eight-story project carries an estimated $190 million price tag after the developer spent an extra year refining plans to cut costs by 10 to 15 percent and secure financing.

Bank of America provided the construction loan. Value engineering focused on more efficient kitchen and bathroom designs and reduced variation among unit types, making the numbers work in a high-cost environment. Amenities will include a golf simulator, cinema screening room, karaoke lounge, and other social spaces intended to create a lively residential atmosphere.

Parkside follows Ensemble’s AVE Santa Clara complex, which opened in the same neighborhood in 2025 and is fully leased. The firm views the two properties as complementary and expects 500 to 1,000 additional units to arrive in the Clara District over the next few years. Ensemble also holds further entitlements in the area and aims to start its next project within two to three years.

The site once held light industrial buildings, continuing the district’s shift toward housing. With an anticipated opening in fall 2028, Parkside adds another substantial residential option to a neighborhood that saw significant new apartments arrive in 2025.

Source: SVBJ

AES Drops Plans for Large Battery Storage Project in Coyote Valley

AES Corporation announced this week that it has canceled its proposed Jewelflower Battery Energy Storage System on a 128-acre site of prime farmland in North Coyote Valley near Morgan Hill. The 350-megawatt project would have placed hundreds of containerized lithium-ion battery units across roughly 40 acres of actively farmed land on San Jose’s southern edge.

The company cited a review of project economics, infrastructure needs, market conditions, community input, and long-term priorities. No permit application had been filed. Local opposition had grown steadily, with the Santa Clara Valley Open Space Authority voting unanimously in May against the plan. Authority leaders pointed to more than $160 million already invested by voters and agencies to protect wildlife corridors, groundwater recharge, climate resilience, and sustainable agriculture in the Coyote Valley Conservation Program area.

Parents at the nearby Charter School of Morgan Hill, state legislators including Senator Dave Cortese and Assemblymembers Ash Kalra and Gail Pellerin, and a petition that collected more than 2,200 signatures had also raised concerns about placing industrial-scale batteries so close to a school and inside a conserved landscape. A previous battery project known as Hummingbird had already been successfully moved to an industrial site behind the Open Space Authority’s San Jose headquarters, showing that better locations exist.

The cancellation keeps Coyote Valley’s open fields and hills available for the wildlife movement, farming, and public access that make the area a vital buffer and natural asset for San Jose and the South Bay. AES continues to pursue battery storage elsewhere in California, while this decision reinforces that energy infrastructure and protected landscapes can both advance when projects are sited with care.

Source: San Jose Inside

Bank Takes Ownership of Vacant Housing Site in Downtown San Jose

The empty lot at 51 and 65 Notre Dame Avenue next to Carlysle Street in Downtown San Jose passed to West Coast Community Bank earlier this year after the lender completed foreclosure on a $10 million loan. An affiliate of Palo Alto-based Acquity Realty had paid $20 million for the four parcels in 2021, cleared the former Andy’s Pet Shop building, and never broke ground on any of its successive plans.

Early visions called for a 21-story mixed-use tower that would have combined housing, office space, and ground-floor retail. Later marketing materials scaled the idea back to a 148-unit mid-rise with roughly 4,700 square feet of street-level shops. Neither version advanced beyond drawings, and repeated loan defaults eventually transferred the property to the bank for $2.3 million in January.

The site sits in a compact, walkable pocket of Downtown San Jose close to transit corridors and the broader Diridon area. Bank ownership opens the door for a new buyer to step in and deliver the housing that has long been discussed for the corner. Local residents who have watched the parcel remain idle through several ownership chapters now have reason to expect fresh movement.

A successful redevelopment here would add homes and street-level activity to a part of Downtown that continues to evolve. The location’s proximity to existing amenities and future growth projects gives any incoming owner a strong foundation to build upon.

Source: SiliconValley.com

Nvidia Adds Major South San Jose Footprint for Advanced Tech Operations

Sources familiar with the deal report that Nvidia has secured a lease on the 302,800-square-foot industrial building at 5853 Rue Ferrari in the Santa Teresa district. City filings from earlier this year outline plans for research and laboratory spaces, work labs, an office area complete with a conference room, and at least one computer lab equipped with server racks. The facility is designed to draw 49 megawatts of power, with earlier proposals also exploring on-site electricity generation.

Prologis, which took ownership of the 17-acre site through its acquisition of Duke Realty, has already begun tenant improvements. The building shell stands complete, and recent on-site observations show active construction both inside the structure and on adjacent grounds. CBRE continues to handle marketing for the property, which offers high clear heights, substantial dock capacity, and power infrastructure expandable well beyond the initial tenant requirements.

This move aligns with Nvidia’s pattern of assembling additional land near its Santa Clara headquarters to support ongoing growth. The Santa Teresa location sits roughly a mile from PG&E’s recently upgraded substation on Santa Teresa Boulevard, where capacity has already doubled to 80 megawatts with further expansion planned over the next three years. That infrastructure work, originally driven by data center demand, now positions the broader area to accommodate the power needs of advanced technology operations.

Such investments underscore the continued pull of South San Jose for companies that require both space and reliable energy to push computing and artificial intelligence capabilities forward. The combination of available industrial stock, highway access, and expanding utility capacity keeps the southern edge of the city firmly in the conversation as Silicon Valley’s physical footprint evolves.

Source: The Mercury News

Boot Barn Heads to Blossom Hill Road Near Oakridge

Western-wear retailer Boot Barn will bring its first San Jose location to 932 Blossom Hill Road, the former Wagly Veterinary Hospital site. The 18,277-square-foot store is expected to open in 2027 and will sit close to Westfield Oakridge.

The Irvine-based chain specializes in boots, clothing, and accessories for work and everyday western style. Its nearest current stores stand in San Martin and Livermore, so the new site fills a clear gap for local shoppers. Brokers from Econic and CBRE handled the lease, noting the corridor’s strong mix of established shopping centers, nearby homes, and easy access.

Silicon Valley retail vacancy recently tightened to 4.9 percent, reflecting solid demand and limited new construction. Boot Barn continues expanding nationally with plans for 70 additional stores this fiscal year as it works toward a long-term total of 1,200 locations.

Source: SVBJ

San Jose Posts Strong Second Place in Silicon Valley Housing Completions

Silicon Valley added more than 9,000 new housing units in 2025, according to state data, with San Jose finishing second behind Santa Clara. The city completed 2,192 units while Santa Clara led the region with 2,685.

Four cities in the area finished more than 1,000 units each. High construction costs continue to shape which projects move forward, yet the overall numbers reflect steady progress toward regional needs. Santa Clara’s total benefited from projects that secured financing earlier, particularly in the Clara District and the first phase of Gateway Crossings.

Morgan Hill completed just 35 units last year but sits on track to meet its state-assigned RHNA target of 1,037 homes for the 2023-31 cycle, with stronger permitting activity already showing in the first half of 2026. San Jose carries the largest regional obligation at more than 62,000 units over the same period.

The results highlight ongoing efforts across the South Bay to expand the housing supply. Continued collaboration between cities and developers will determine whether the momentum carries into the next several years as communities work to meet long-term goals.

Source: SVBJ

New Bill Kee Park Takes Shape Near Almaden Expressway

A modest 1.4-acre parcel at the end of Rinconada Drive will soon become Bill Kee Park, a neighborhood gathering spot complete with a playground, walking loop, pollinator garden, public art, and a bioretention system that captures and filters stormwater. The site sits adjacent to the Almaden Expressway and Curtner Avenue off-ramp in south San Jose.

City Council approved the name earlier this year after community surveys ranked Bill Kee highest among the options. Kee, a Chinese American business leader who died in 1989, helped preserve San Jose’s historic Chinatown and broke barriers by becoming one of the first Chinese Americans admitted to several local civic organizations.

Design work is scheduled to wrap up this spring, with construction expected to begin in the fall and the park opening for public use by summer 2027. The project grows out of land dedicated during the Latitude 37 apartment development and forms part of broader efforts to improve water quality while adding recreation space to nearby residential pockets.

Families and neighbors in the area will gain a quiet place to walk, play, and learn once the improvements arrive. The combination of everyday amenities and environmental features turns an underused corner into a practical addition that supports both daily life and the city’s long-term sustainability goals.

Source: City of San Jose Capital Projects

San Jose Posts Nation’s Weakest Home Price Growth Amid Tech Layoffs

Local buyers gained a measure of breathing room in June as the San Jose metro area recorded the weakest year-over-year home-price change among the nation’s 40 largest housing markets. The median sale price fell 4.6 percent to $1.619 million, a drop of roughly $78,500 from the same month a year earlier, according to Homes.com data. Nationally the median rose $6,000 to $401,000.

San Francisco followed a different path. That city’s median climbed 7.2 percent to $1.7 million, lifted by concentrated AI hiring and startup activity that San Jose has not matched at the same scale. Analysts pointed to a sharp rise in second-quarter layoff announcements, including several thousand positions at Meta that touched Menlo Park, Sunnyvale and Fremont, plus additional cuts at Oracle, LinkedIn and Intuit. Recent monthly payroll reports also showed the broader Bay Area job market contracting after a period of modest growth.

Slower immigration has further cooled demand. Foreign-born residents make up about 41 percent of Silicon Valley’s population and have long filled high-skilled roles, founded companies and eventually purchased homes. With that pipeline thinning, one key source of both labor and housing pressure has eased. The resulting price softness stands out after years in which the region’s market appeared almost immune to gravity, raising questions about the longer-term strength of the local economic engine even as it offers short-term relief to would-be buyers.

San Jose remains one of the most expensive markets in the country, still more than triple the national median. Yet the recent dip, combined with rising inventory, gives shoppers slightly more choices and negotiating room than they enjoyed a year ago. Well-priced homes continue to move, but the balance has tilted just enough to matter for families and first-time buyers watching the listings.

For a city whose identity remains tightly linked to technology and global talent, the June numbers mark a noticeable shift. How the market absorbs further changes in employment and immigration will shape both housing costs and the broader vitality of Silicon Valley in the months ahead.

Source: SVBJ