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

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

Distribution Center Planned for South San Jose

There have not been talks of major development in the Coyote Valley region since plans for Cisco's new 6.6 million SQFT headquarters fell through in the early 2000s. That will soon change, but the development is not what you would expect. The Panattoni Development Company has submitted an application for a 517,000 SQFT warehouse and distribution center. The building would have 36-foot-tall "clear heights" and a high-tech sprinkler system, making it very attractive to companies like Amazon.

E-commerce companies are scrambling to build distribution and logistics centers to keep up with demand. Over six million SQFT of industrial buildings in the Bay Area have been repurposed for commercial, residential, or some other use. Only three million SQFT of new industrial space has been built to replace what was taken away. That leaves high demand for industrial space with limited areas that allow for industrial development.

The proposed project is only 20 miles away from the bulk of the Bay Area's population and is conveniently a reverse commute. Panattoni plans to develop it speculatively, meaning they are willing to construct it even without a signed tenant. If the stars align, they could start construction this September.

This won't be the only new industrial project in the area. Panattoni is also building a new warehouse for DBI Beverage just a few miles north along with another 111,000 SQFT warehouse that is not yet leased.

Source: SVBJ