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

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

San Jose Startup TYLsemi Raises $43 Million to Speed Custom AI Chips

A new San Jose semiconductor company has stepped out of stealth with $43 million in seed funding aimed at helping firms design custom processors for AI infrastructure. TYLsemi, launched in March, focuses on technology that shortens development time, lowers costs, and improves power efficiency for companies that need specialized silicon but lack full semiconductor teams.

Matter Venture Partners led the round, with additional backing from Viola Ventures, GHOVC, Egis Technology, and a strategic semiconductor investor. CEO Mohit Gupta and the founding team previously held roles at Alphawave, Microsoft Azure Silicon, and Rambus. The company already holds a letter of intent with a tier-one customer and expects further design wins this year, with first silicon samples planned for the second half of 2027.

Energy constraints have become a central limit on how much compute hyperscalers can deploy. TYLsemi’s approach targets lower power use inside AI systems as one piece of the larger solution that also involves cooling and data-center design. The firm currently employs more than 30 people and plans to reach more than 80 by year-end and more than 200 by the end of 2027, with roughly half based in the United States and most of those in the Bay Area.

Negotiations are under way for about 6,000 square feet of space near First Street and Zanker Road in north San Jose, and a Taiwan office is scheduled to open later this year to support manufacturing and supply-chain work. The arrival of another specialized chip firm adds to San Jose’s continuing role as a center for the hardware that powers the next wave of artificial intelligence.

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

San Jose Moves to Set Rules for Expanding Fleet of Delivery Robots

Small autonomous bots have rolled along Downtown San Jose sidewalks since spring, ferrying meals from local restaurants to nearby customers. Now the city is preparing formal regulations that could allow a broader rollout, including larger models designed for bike lanes.

Transportation officials presented draft rules during a community meeting this week. The proposal would create a year-long permit system for companies operating the devices. Speed on sidewalks, pathways and crosswalks would be capped at 5 mph. Smaller units would need visibility flags, and operators would have to clear any immobilized bots from public areas within a reasonable time. The city could withhold additional permits if numbers grew too high and would retain authority to issue fines or revoke operating rights for violations.

Two firms, Coco Robotics and Serve Robotics, currently run about 35 of the cooler-sized machines combined. DoorDash has signaled interest in introducing its taller Dot robot, roughly five feet high and capable of traveling up to 20 mph in bike lanes under a monitored pilot. Officials framed the electric machines as a way to trim vehicle trips for food pickups while improving access for residents with limited mobility.

Residents raised practical questions about sidewalk congestion, especially for people using wheelchairs or other mobility aids, and about how faster bots would share narrow bike channels with cyclists. Industry representatives stressed the need for public comfort if the technology is to succeed. Staff indicated the finalized package would head to City Council in September, with a possible launch of the permit program in late fall or winter.

The discussion reflects San Jose’s effort to guide new mobility tools rather than simply react to them. As more restaurants and delivery platforms explore automation, clear local standards will help determine whether these devices become a routine, low-impact part of city streets or create new friction on shared paths.

Source: San Jose Spotlight

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

Nvidia's Hexagonal Headquarters Expansion: A Silicon Valley Power Move That Elevates San Jose's Tech Landscape

Nvidia has plans for a yet another striking pixelated office building in Santa Clara, just minutes from San Jose's vibrant core. The proposed 692,634-square-foot structure at 2300 and 2350 Walsh Avenue draws inspiration from the company's flagship headquarters, adopting a distinctive hexagonal form across three stories. Accompanied by three levels of underground parking and a pedestrian bridge spanning Walsh Avenue to link with an adjacent property, this development underscores the relentless forward momentum of innovation in our region. Acquired by Nvidia in May for $123 million, the site currently holds ten buildings set for transformation into a hub of cutting-edge work.

This project fits into Nvidia's aggressive 2025 real estate strategy, where the company has invested over $400 million in properties encircling its Santa Clara base. Another filing from May outlines a 324,000-square-foot facility at 2400 Condesa Street, blending offices, labs, and additional parking to fuel research and development. With Devcon Construction handling the build and Gensler leading the design, these initiatives promise to inject fresh energy into the local economy, drawing top engineers, researchers, and entrepreneurs who often commute through or settle in San Jose. The architectural review sits with Santa Clara city officials as of early December, hinting at construction that could break ground soon.

For San Jose residents and businesses, Nvidia's growth ripples outward like waves from a stone skipped across the Guadalupe River. As talent pools deepen and collaborative opportunities multiply, our city's own tech ecosystem stands to gain immensely. Watch for the hexagonal silhouette to become a new landmark in Silicon Valley's landscape.

Source: SVBJ

The Clara: A New Gem in Silicon Valley’s Crown

Santa Clara’s latest luxury residential development, The Clara, has opened its doors, and it’s giving us plenty of reasons to get excited. Located in the heart of the emerging Clara District, this 22-story high-rise sits just steps from Levi’s Stadium, blending modern living with easy access to entertainment and events. It's actually the tallest residential building in Silicon Valley outside of Downtown San Jose.

With 508 homes ranging from studios to sprawling penthouses, The Clara is already turning heads—only two penthouses remain available for lease, a sign of just how much demand there is for this kind of upscale living near San Jose.

The residences themselves are a showcase of thoughtful design and high-end touches. Open gourmet kitchens come equipped with custom Italian cabinetry, Caesarstone countertops, and Bosch smart appliances, including gas cooktops for those who love to cook. Floor-to-ceiling windows flood the space with natural light, while features like Nest thermostats, Salto keyless entry, and customizable Elfa closets make daily life both convenient and stylish. It’s the kind of place that feels like a step up, whether you’re a tech professional, a family, or someone who just appreciates a well-crafted home.

What really sets The Clara apart, though, are the amenities. Residents can enjoy a 6,500-square-foot fitness center that flows indoors and out, a yoga studio, and a spa complete with sauna and steam rooms. There’s a karaoke room for fun nights in, coworking spaces that adapt to hybrid work life, and even a children’s playroom and outdoor playground. The eighth-floor terrace offers a 75-foot pool with views of Levi's Stadium, grilling stations, and bocce courts, while the rooftop deck delivers jaw-dropping 360-degree views of the South Bay and San Jose. It’s hard not to imagine hosting friends or unwinding after a long day in spaces like these.

This 45-acre neighborhood is shaping up to be a lively, walkable hub with plans for 4,500 residences, public parks, bike lanes, and over 100,000 square feet of shops and restaurants. The Clara puts you right in the middle of these future project, with top employers close by and a lifestyle that’s hard to beat.

Pricing starts at $3,270/mo and you can schedule a tour by calling 408-922-9000 or visiting www.theclara.com. 

Alamo Drafthouse to Elevate Silicon Valley’s Movie Experience

Movie lovers in Silicon Valley have something to look forward to this summer. Alamo Drafthouse, the Austin-based cinema chain known for its unique approach to film and dining, is opening two new theaters in our backyard. One will debut at The Village at San Antonio Center in Mountain View on June 16, while the other is slated for Westfield Valley Fair in summer 2025. They are both replacing the recently closed ShowPlace Icon locations.

What sets Alamo Drafthouse apart? For starters, you can enjoy full meals and drinks, including alcohol, delivered right to your seat. The Mountain View theater, clocking in at 50,700 square feet, will offer 10 auditoriums and room for over 1,200 guests, complete with an arcade and a third-floor specialty bar pouring 24 draft beers and cocktails. The Valley Fair location ups the ante with 62,228 square feet, capacity for over 1,500 people, and its own themed bar. Forget the old kiosk system of the previous theaters—these spots are all about comfort, convenience, and a personal touch.

Between the two locations, at least 300 new jobs will emerge. Also, Alamo Drafthouse isn’t stopping at blockbusters—they’re known for screening a wide range of films, from indie hits to special events. In 2024 alone, they showed 1,700 movies nationwide, far more than their closest competitors. This will definitely fill the major hole at Valley Fair after ShowPlace Icon left.

Source: SVBJ

Westfield Valley Fair Welcomes Exciting New Retailers to San Jose

San Jose’s retail landscape continues to level up, and Westfield Valley Fair Mall seems to be ground zero. This iconic shopping hub, already a go-to for fashion, dining, and entertainment in Silicon Valley, is adding a slew of new stores that are sure to turn heads. Whether you’re a San Jose native or just visiting, these fresh arrivals give you plenty of reasons to stop by and see what’s new.

Here’s a look at some of the standout retailers joining the lineup:

• RH Outlet: Known for its upscale furniture and home decor, RH (formerly Restoration Hardware) is bringing its blend of luxury and affordability to fill a once-empty space with style.
• Dolce & Gabbana: This Italian fashion powerhouse promises high-end glamour, adding a touch of international flair to the mall’s offerings.
• Mango: A global favorite for trendy, accessible clothing, Mango’s arrival makes it easier than ever to refresh your wardrobe.
• Kiehl’s: Skincare fans rejoice—Kiehl’s is setting up shop with its premium products, perfect for a little self-care.
• Nespresso: Coffee lovers can look forward to grabbing their favorite brews and machines from this sleek, modern outpost.
• Columbia: Outdoor enthusiasts will find top-notch gear for their next adventure, courtesy of this trusted activewear brand.
• Asia Live: From the creators of San Francisco’s China Live, this two-story culinary spot will showcase diverse Asian flavors starting in fall 2025.

The mall isn’t stopping there—plans call for 25 new stores by the end of 2025, covering everything from luxury brands to innovative dining experiences.

Source: SVBJ

The Clara: Luxury Silicon Valley Living

If you’re looking for a reason to get excited about residential growth happening in our region, let me introduce you to The Clara, a jaw-dropping 22-story luxury residential development that’s setting a new standard for Silicon Valley. It's the tallest residential building in Silicon Valley outside of Downtown San Jose. Located in Santa Clara’s new Clara District, across the street from Levi's Stadium and just a short drive or Light Rail ride from Downtown San Jose.

A New Icon in Santa Clara

Imagine living in a place where sweeping views of the San Francisco Bay, the Diablo Range, and the Santa Cruz Mountains greet you every day. That’s the reality at The Clara, a masterpiece designed by the world-class team at Bohlin Cywinski Jackson, with interiors crafted by AvroKO and landscapes by Surfacedesign, Inc.. With 508 homes—ranging from sleek studios to spacious three-bedroom apartments, townhomes, and penthouses—this 22-story tower offers something for everyone.

Nick Vanderboom, Chief Operating Officer at Related California, sums it up perfectly:

“The Clara offers a completely new standard of living in Silicon Valley, providing residents with a level design, amenities and services that are unmatched in this market. The Clara will anchor The Clara District, a vibrant new neighborhood in north Santa Clara with public parks, new restaurants and retail, offering residents an exceptional living experience in the heart of Silicon Valley.”

Design That Speaks to the Soul of Northern California

The Clara isn’t just a building—it’s a love letter to Northern California. The architecture draws inspiration from our region’s natural beauty, using local materials and organic forms to create a seamless connection with the environment. David Miller, AIA, Principal at Bohlin Cywinski Jackson, explains:

“It has been a great pleasure working with Related to establish a new precedent for high-rise living in Silicon Valley. Inspired by urban and natural context, the design of The Clara creates elevated residential and amenity environments that have an intrinsic connection to their surroundings.”

Step inside, and you’ll find homes that blend laid-back elegance with modern luxury. Think open gourmet kitchens with Italian cabinetry, Caesarstone countertops, and Bosch smart appliances, paired with bathrooms featuring custom vanities and glass-enclosed showers. Floor-to-ceiling windows flood each space with light, while the penthouses and townhomes kick it up a notch with Thermador appliances, wine refrigerators, and private courtyards. Andrew Lieberman, Managing Principal and Design Director at AvroKO, describes the vibe:

“At The Clara, we aimed to create a relaxed yet sophisticated environment that reflects the laid-back sensibility of the region. By using local woods, curated stones, and ceramics, we anchored the design with a strong sense of place.”

Amenities That Rival a Five-Star Resort

Living at The Clara means having access to amenities that make every day feel like a vacation. Here’s a taste of what’s in store:

• A 6,500-square-foot fitness and yoga studio with a sauna, steam room, and private treatment room.
• The Twenty-Two Lounge, complete with a private dining room, demonstration kitchen, and—yes—a karaoke room!
• The Redwood Den, a cozy fireside lounge and library for unwinding.
• The Parkside Lounge, an indoor-outdoor coworking space with conference rooms.
• A children’s playground, dog run, and pet spa for the little ones (and furry friends!).

The real showstopper? The 8th-floor sun terrace, overlooking the foothills and Levi’s Stadium, with a 75-foot lap pool, spa, cold plunges, grilling stations, a pizza oven, and bocce courts. Plus, a rooftop deck with a firepit offers panoramic views that’ll leave you speechless. James Lord, Founding Partner of Surfacedesign, Inc., ties it all together:

“As landscape architects, we are always interested in connecting people to their natural surroundings, and here at The Clara, the landscape design is an expression of the evocative colors of the San Francisco Bay Salt Ponds.”

The Clara isn’t just a standalone gem—it’s the heart of The Clara District, an emerging neighborhood that’s bringing new energy to Santa Clara and North San Jose. With pedestrian and bike pathways, new restaurants, boutique fitness spots, and entertainment options like Levi’s Stadium all within walking distance, this area is buzzing with potential.

Pricing

Ready to call The Clara home? Pricing starts at:

• Studios: $3,460
• One-bedrooms: $4,165
• Two-bedrooms: $5,614
• Three-bedrooms: $6,777
• Penthouses and townhomes: Pricing available upon request

Want to see it for yourself? Visit www.theclara.com or call 408-922-9000 to schedule a tour.

San Jose Perseveres in the 2025 Silicon Valley Index

The 2025 Silicon Valley Index from Joint Venture Silicon Valley has just dropped, and it’s packed with insights. This annual report is like a love letter to our region, highlighting the strengths, challenges, and incredible potential of Silicon Valley—with San Jose right at its heart. Let’s dive into some of the standout takeaways that show why our city is a powerhouse of innovation, diversity, and opportunity.

First off, Silicon Valley’s population is holding steady after a few rollercoaster years, with a tiny but mighty 0.2% growth spurt. San Jose, as the biggest city in Santa Clara County, is a key player in this stability. We’re a magnet for talent from around the globe, with 41% of our population being foreign-born—a historic high. In tech, that number jumps to 66%, with 70% of those workers hailing from India or China.

Employment here isn’t booming like the old days, but it’s not shrinking either. The Index notes a slight dip of 0.1% (just 1,200 jobs), keeping us just above pre-pandemic levels. Compare that to San Francisco, still lagging 8% below its 2019 mark, and you’ll see San Jose’s resilience shining through. Our community infrastructure and services sector—like healthcare, retail, and education—has added a whopping 155,000 jobs since 2020, making up 51% of our workforce. Plus, startups in software and biotech are growing fast, up 9.3%. San Jose’s tech scene is still the place to be!

The innovation ecosystem? Still red-hot. Silicon Valley and San Francisco together raked in $69 billion in venture capital last year—doubling 2023’s haul. San Jose’s tech giants and startups are leading the charge, especially in artificial intelligence, where generative AI startups snagged $22 billion. We still account for over 50% of the nation’s venture capital and 37% of its angel investments. Our inventors also set a new record with 23,600 patents. That’s the kind of creativity that keeps San Jose on the global map!

Unfortunately, it’s not all smooth sailing. Housing remains a tough nut to crack, with median home prices hitting $1.92 million in 2024. Fewer than 26% of first-time buyers can afford that, and only 4,900 new units were permitted last year—the lowest in over a decade. Still, San Jose’s leaders are tackling this head-on, and the Index hints at a shift: tech firms are hiring here but also expanding elsewhere, which could ease some pressure as we figure out solutions.

On the flip side, our diversity and education stats are something to cheer about. Asians now make up 37% of the population, while 56% of adults hold a bachelor’s degree or higher—way above state and national averages. “The region is well educated and linguistically diverse: 53 percent speak a language other than English at home,” the report says, and San Jose’s vibrant multicultural fabric is a big part of that story.

Sustainability is another win. Solar power capacity hit 1,100 MW in 2024, and greenhouse gas emissions dropped by 690,000 metric tons over five years—equivalent to 206 wind turbines running for a year. San Jose’s green initiatives are paving the way for a cleaner, brighter future.

Silicon Valley—and San Jose especially—is in a state of flux. However, we’re not just resting on our laurels; we’re adapting, innovating, and growing stronger.

Source: 2025 Silicon Valley Index

2024 Silicon Valley Index

The Joint Venture Silicon Valley Index has been providing insights on our strengths, weaknesses, opportunities, and threats for over 25 years. It provides an honest and holistic view of life in Silicon Valley. You can download the 2024 Silicon Valley Index over here.

Have a quick look at the comparison between Silicon Valley and San Francisco in the image below. Here are some of my notes from the key findings:

• We're growing again with 11,300 new Silicon Valley residents last year.
• VC dollars going into AI have risen 220% year-over-year. Generative AI represented 44% of all 2023 VC investments in AI companies.
• Silicon Valley just had four IPOs last year. San Francisco had one.
• We're still generating more patents by far than any other place in the nation. San Jose is the top city in the nation yet again for patent filing.
• Silicon Valley's 20 largest tech companies were 7% smaller at the end of 2023 than than the previous year, but employment in tech still ended up being 37,000 employees more than pre-pandemic figures. Tech is now 28% of the workforce.
•  If wealth was evenly distributed in Silicon Valley, it would amount to $2 million per household.
• Silicon Valley's population continues to age, with those over 65 years old up by 32% since 2012 and the number of children down by 13% over the same period.
• The number of births each year in Santa Clara and San Mateo counties has declined steadily since the 1990s, dropping by 33% over 33 years.
• 51% of Silicon Valley speaks a language other than English at home
• The two largest office projects in Silicon Valley last year were both in Downtown San Jose, 200 Park (965,342 SQFT) and Adobe's 4th Tower (700,000 SQFT). The 3rd largest was a 350,000 SQFT building in South San Francisco.
• Silicon Valley childcare costs have quadrupled over the past 20 years, rising twice as fast as regional inflation.
• There were no unhealthy air days in the past three years, showing an improvement in air quality.
• Total solar capacity increased sixfold over the past decade, from 174 MW in 2013 to 983 MW in 2023. Batter storage grew twentyfold in the past 5 years.
• Gasoline and Diesel sales have steadily declined and are still 19% below pre-pandemic levels (presumably due to EV sales)
• 17% of all Californian EV charging outlets are in Silicon Valley, over 5,000 in Santa Clara County alone.
• Life expectancy is several years higher in Silicon Valley versus California or the United States.

2023 Silicon Valley Index

The Joint Venture Silicon Valley Index has been providing insights on our strengths, weaknesses, opportunities, and threats for over 25 years. It provides an honest and holistic view of life in Silicon Valley.

You can download the 2023 Silicon Valley Index over here.

Below are some of the key findings:

• The region continued battling surges, but the COVID death rate per capita declined in 2022.
• COVID-19 dropped to Silicon Valley’s sixth leading cause of death in 2022, down from third in 2021.
• The region recovered from pandemic job losses by April 2022. Unemployment hit an historic low. Tech is becoming more highly concentrated.
• Silicon Valley added 88,000 jobs between mid-2021 and mid-2022, a growth rate of 5.4%. An estimated 22,000 jobs were added in the second half of the year. The 30 largest firms account for 42 % of tech employment (19 % are at Google, Apple, and Meta alone).
• The rise and fall of the stock market drove large shifts in venture funding and IPOs.
• Pandemic-period stock market gains of nearly $9 trillion proved transitory as the market tumbled in 2022. Half of all venture capital flowing to Silicon Valley or San Francisco companies was in the form of megadeals ($24.7 billion spread across 116 megadeals).
• Demand for commercial space is tempered by remote work, but specialized R&D space is hot.
• Though remote work is shifting the dynamic, leasing activity remained strong throughout 2022. While there was a 45% increase in the number of lease agreements, the average amount of space per lease has sharply declined.
• Remote work is increasing, creating extra capacity on roadways and decimating public transit.
• The share of remote workers grew to 35% in 2022, up from 28% in 2021. Private commuter shuttles are being put out of service. Caltrain ridership fell to 4,100 daily riders, down from 67,000 (-92%). BART recovered 35% of its pre-pandemic riders.
• Silicon Valley’s population is declining; the share of young people is also falling.
• Silicon Valley’s population declined by 38,900 residents between mid-2020 and mid-2021, the highest figure ever recorded. The decline was due to a 74% rise in domestic outmigration, a reversal of the net flow of foreign immigrants (-103 %), declining birth rates, and rising death rates.
• The pandemic and patterns of outmigration haven’t affected soaring home prices
• Silicon Valley’s high home prices rose 7% in 2022, reaching a record-breaking median price of $1.53 million. The share of first-time homebuyers who can afford a median priced home fell to 27% and is as low as 14% for the region’s Black or African Americans and Hispanic or Latino residents.
• Inflation outpaced income gains; assistance programs scale upwards
• Increases in the regional Consumer Price Index since 2019 outpaced household income gains, resulting in a $550 decline in median household income in 2021. Childcare costs rose twice as quickly as the regional inflation rate since 2010 (+85%). Average wages vary significantly across racial and ethnic groups, with the largest disparity between Hispanic or Latino and White, not Hispanic or Latino residents.
• Silicon Valley has the nation’s largest gaps, and they are increasing.
• For the first time ever, ultra-high net worth households are included in regional wealth data. Through this lens, inequality is even more stark, with the top 0.001% of Silicon Valley’s households holding more wealth than the nearly 500,000 households in the bottom 50%.
• In 2022 the top 10 % of Silicon Valley households hold 66% of the wealth; eight Silicon Valley households residents hold more wealth than that of the bottom 50% combined (nearly half a million households).
• While income inequality was lessening in the state and nation (down 1 and 3%) it rose in Silicon Valley by 5% in 2021.
• 28% of Silicon Valley households are below income-adequacy; those households include 42% of the region’s children. 42% of children in San Mateo and Santa Clara counties live in households that are not self-sufficient; the most influential factor for these households is the cost of childcare.
• Income adequacy varies significantly by race and ethnicity. Among those most likely to live below Self-Sufficiency Standards are Hispanic or Latino non-citizens and those with limited English.

2020 Silicon Valley Index

The Joint Venture Silicon Valley Index has been providing insights on our strengths, weaknesses, opportunities, and threats for over 20 years. It provides an honest and holistic view of life in Silicon Valley, with the obvious exception that it was published before COVID-19. It's worth reading for a reminder of where we were at the start of 2020. We can use today's events as a chance to reflect on what we can do differently when we hopefully return to normalcy sometime later this year.

You can download the 2020 Silicon Valley Index over here.

Below are a few items that stood out for me:

• We have had nine continuous years of expansion since the last recession, adding 821,000 jobs in the Bay Area.
• Over that same time period, we only permitted 173,000 new homes and have 100,000 megacommuters [Josh: hopefully the option to work remotely continues for many post-COVID].
• Labor productivity reached a record $241,000 per worker, a 53% increase from 2001.
• Unemployment hit 2.1%, a 19-year low.
• More people are leaving the region than coming in.
• Home prices declined 6% in 2019, yet median home sale prices are still the highest in the country (over $1 million).
• Income inequality hit a historic high with 13% of households holding 75% of the region's wealth.
• Internet speeds are slow compared to SF, California, and the country as a whole [Josh: this is shocking for living in the middle of Silicon Valley].
• Individual median income is $117,000 and 82% of the population is above 150% of the poverty level.
• Silicon Valley's ethnic breakdown is 35% Asian, 33% White, 25% Hispanic/Latino, 5% Multiple/Other, and 2% Black/African American.
• 24% of Silicon Valley residents have Graduate or Professional Degrees.
• 51% of families speak a language other than English at home (vs. 41% for SF, 45% for California, and 22% for the US).
• The Bay Area has by far the largest number of tech jobs and greatest % of people employed in tech out of any region in the US.
• 9% of Silicon Valley Residents lack access to adequate food and nutrition
• San Jose generates more patents than any other city in California (11% of all CA patents in fact).
• In 2019, traffic delays cost as much as $3.4 billion in lost productivity for Silicon Valley workers.

Developer proposing a 10.5 million SQFT project in Santa Clara with a 50-story skyscraper!

The tallest project in Silicon Valley history was just proposed--to the Santa Clara City Council. While not in San Jose proper, this would have a tremendous impact on San Jose as it would push forward what is considered acceptable vertical development in the metro.

This behemoth project by Chinese developer Kylli would clock in at 3.5 million SQFT of office, 400,000 SQFT of Amenities, 6 million SQFT of residential (~6,000 units), 600,000 SQFT of retail, and around 8 acres of open space. As you can see from the drawing below, it would include nearly two dozen towers, with the tallest being a 50-story office building which at 600 feet would be twice as tall as anything in Downtown San Jose.

Despite totaling 10.5 million SQFT of development, it would utilize less than 50 acres at the former Yahoo campus. To put that in perspective, Related's 9.1 million SQFT mixed-use project across from Levi's Stadium will use 240 acres. What Kylli is proposing really should be the level of density we look towards in future projects if we plan to build enough housing to keep prices at bay and enable communities where you can work, live, and play without needing to drive.

While I would have much rather seen a project like this proposed for San Jose proper, I have to root for this to go forward and hopefully motivate our city to follow suit with similar projects. Google will be a gamechanger for Downtown, but we need to start looking at other parts of the city (not limited by the airport) where we have the opportunity to build extremely dense world-class villages. Think Bigger San Jose has a similar perspective on this project. This will surely be a proposal we'll keep close tabs on!

Source: SVBJ

San Jose Metro led the nation in economic growth for 2015!

Out of the 382 metros tracked by the Bureau of Economic Analysis, only 292 saw their economies grow in 2015. Of the 20 largest metros, guess which had the most growth.

The San Jose Metro grew its economy by an incredible 8.9% last year. This is miles away from the next city which is Houston at 4.6%. For all the buzz San Francisco got, they grew their economy by 4.1% last year, less than half of San Jose and putting them fifth on the list. New York barely made a dent at 1.7%.

What is even more impressive is that if you look at ALL 382 metros, including the smaller ones where it is easier to have big economic swings, San Jose still had the 2nd fastest growing economy in the US. Only Midland, TX with a population of 140k had a faster rate of growth.

The bubble chart below the grid shows economic performance versus the size of the metro (larger bubble = more population). San Jose is still performing like a fast-growing startup (hot small city) despite the fact the metro has 2 million people.

To paraphrase a Twain quote: the reports of Silicon Valley's death are greatly exaggerated. Every economy in the US would love to be where San Jose is today.

Source: CNBC, Hillrise from the San Jose Development Forum