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

A Family Grocer and a New Gym Fill Cornerstone in Los Gatos

South and West San Jose shoppers will soon have two new reasons to pull into Cornerstone Shopping Center. Family-owned Gus’s Community Market signed on for the 18,125-square-foot space Whole Foods left behind at 15980 Los Gatos Blvd., with an opening targeted for April or May 2027. Club Studio Fitness is slated to open this September in the former Rite Aid at 15920 Los Gatos Blvd.

Gus’s will be the first store the Vardakastanis family has opened outside San Francisco, where five markets already serve neighborhoods from the Haight to Mission Bay. The Los Gatos shop will carry produce, full-service meat and seafood, sushi, specialty groceries, beer and wine, plus extras the SF stores do not yet have: house-baked breads, customizable prepared-food bowls, and a café with an indoor-outdoor patio. Landlord Cilker put about $2.5 million into the two spaces and now reports the center at full occupancy, with neighbors that include Hanna’s Noodle Bar, SkinSpirit and Shepherd & Sims.

The grocery map along that stretch keeps shifting. Whole Foods moved into a larger building a short drive away. Nob Hill Foods, a fixture less than a mile from Cornerstone, plans to close in June 2027 after its parent company declined to renew the lease. Lunardi’s remains nearby. Cilker’s team picked Gus’s for a smaller, service-heavy model rather than another big-box format, betting that shoppers from Almaden, Cambrian and Willow Glen will notice the difference in the aisle and at the counter.

Club Studio brings boutique classes, a full gym floor and wellness amenities under one membership. The Orange County-based chain signed a 10-year lease; Gus’s signed 15 years with options. Together the two leases turn a pair of empty boxes into a grocery-and-workout stop that sits a quick hop from southern San Jose neighborhoods.

Source: Silicon Valley Business Journal

DSW Prepares Second San Jose Store at Almaden Plaza

Footwear retailer DSW will open a second location in San Jose at Almaden Plaza. The new store will occupy roughly 14,400 square feet previously held by a furniture retailer at the 5353 Almaden Expressway shopping center.

Almaden Plaza already anchors a mix of large tenants including T.J. Maxx, Sports Basement, and Hobby Lobby. Recent additions include TleafGreen Burmese Kitchen, with a Benihana restaurant also on the way. The center sits near residential neighborhoods and other retail destinations such as Oakridge Mall and Almaden Ranch Marketplace.

DSW currently operates one San Jose store on Stevens Creek Boulevard, more than six miles from the planned Almaden Plaza site. The chain, owned by Designer Brands, runs more than 500 stores nationwide and has signaled additional openings this year.

Silicon Valley retail vacancy has tightened over the past year, falling from 5.3 percent to 4.9 percent. Limited new construction has helped strengthen leasing demand, particularly in the San Jose-Campbell-Los Gatos area.

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

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

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

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

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

Prologis Advances Major Data Center Plans in South San Jose

The company Prologis has set its sights on 5977 Silver Creek Valley Road for a substantial data center project. The vacant site in South San Jose offers strong access to utilities and a skilled local workforce ready for such developments.

Plans call for a multi-level building exceeding 500,000 square feet in total interior space. At least 30,000 square feet would serve as office space while the remainder houses the servers and equipment essential for data processing and storage.

The facility would draw up to 99 megawatts of power. Developers intend to build an on-site substation near the existing PG&E one just three miles away, plus backup generation systems. Water needs would match those of roughly 40 households, with commitments to limit effects on nearby areas.

Early designs show a functional, blocky three-story structure in grey and white tones. Landscaping and facade details aim to soften the overall appearance despite the emphasis on practicality. Construction could wrap up within about two years if approvals come through.

This project underscores San Jose's ongoing appeal to major tech investors. It promises to expand the region's capacity for advanced computing while creating opportunities in construction and operations.

Source: SF YIMBY

Muon Space Opens Large New Satellite Manufacturing Facility in San Jose

San Jose has welcomed a major boost to its advanced manufacturing sector with Muon Space’s recent opening of a 130,000-square-foot facility at 5970 Optical Court in South San Jose. The Mountain View-based satellite company will use the new site as its primary production hub while keeping headquarters operations focused on smaller components.

The expanded space increases satellite production capacity by 20 to 30 times. Muon has already built and launched eight satellites and plans to launch five more this year, with roughly 25 expected next year and further growth the year after.

Headcount has roughly doubled over the past year to about 260 people, with the majority of that growth occurring locally. The company expects to add another 100 to 120 employees in the coming year, focusing heavily on software and skilled technician roles. Access to talent from major tech firms as well as San Jose State, Stanford, and Berkeley supports ongoing new grad hiring.

When selecting the location, Muon considered other aerospace centers but chose San Jose for its existing team, strong local infrastructure, and cost advantages from prior tenant improvements. The previous occupant built semiconductor fabrication equipment with similar complexity to spacecraft systems, which aligned well with Muon’s needs.

The company maintains an office in the Washington DC area and plans to open a Colorado office this year due to an existing employee cluster there. Further expansion into Southern California remains a longer-term possibility.

Source: SVBJ

Nokia Subsidiary Launches Photonic Semiconductor Facility in South San Jose

Infinera Corp., a Nokia subsidiary, purchased the 82,000-square-foot facility at 6373 San Ignacio Avenue for nearly $27 million. The team will convert this former headquarters in South San Jose into a dedicated photonic semiconductor fabrication plant.

Federal support accelerates the transformation. Nokia secured $40 million through the CHIPS and Science Act to fund advanced manufacturing capabilities for photonic chips that power high-speed data transmission and artificial intelligence systems.

The move follows Nokia’s $2.3 billion acquisition of Infinera and builds on construction progress at the Valley Oak Technology Center. San Jose will gain a powerful new asset that brings high-value production jobs and reinforces the city’s role in critical global innovation.

Source: SVBJ

Tony Dimaggio's Pizza Reopens on Monterey Road

Tony Dimaggio's Pizza will officially reopen today at 3852 Monterey Road. This family-owned spot, a staple since 1977, overcame a roof fire in July 2024 that led to an 11-month closure. Now back in business since June 2025, the restaurant invites the community to its formal celebration on Thursday, October 9, starting at 11:30 a.m. Remarks from Councilmember Bien Doan, representatives of the Monterey Corridor Business Association, and owner Jack Dimaggio will highlight the event, followed by a ribbon-cutting ceremony. As the city gears up for the restaurant's 50th anniversary in 2027, this milestone underscores the resilience of local businesses that define San Jose's character.

The signature stromboli at Tony Dimaggio's stands out as a unique offering, featuring ham, Italian sausage, salami, mustard, American cheese, and mozzarella cheese, all encased in pizza dough and finished with butter, oregano, black pepper, and homemade tomato sauce. Founded by Tony and Anna Dimaggio, who relocated from the East Coast drawn by the area's mild weather and orchard landscapes reminiscent of Sicily, the restaurant introduced this dish to San Jose locals unfamiliar with it at the time. Today, the family continues the tradition, with Jack, his wife Dimitra, brother Tom, and even their 80-year-old mother still involved in daily operations. Their dedication reflects the strong community ties that make San Jose's neighborhoods thrive.

Monterey Road itself serves as the southern gateway to the city's urban core, stretching from Alma Avenue to Capitol Expressway and supporting around 1,500 businesses and 11,000 jobs. From breweries and retail stores to major employers like Maxar Space Satellites, Sim's Metal, Capitol Drive-In, and The Plant shopping center, this corridor pulses with economic activity. Last year's establishment of a Business Improvement District, led by the Monterey Corridor Business Association in partnership with city staff, allows business owners to pool resources for enhancements like street cleaning, security, and marketing.

VTA planning to build homes by Branham Light Rail

VTA is planning to build a new affordable housing project on a 2.5-acre parking lot at the Branham Light Rail station ins South San Jose. The project would consist of 45 townhomes, 10 of which would be dedicated to extremely low-income earners in Santa Clara County. The homes would either be three or four-bedroom units.

This is just one of many projects that the VTA has planned for transit-oriented development. This is their fifth project underway and there are a dozen more in the pipeline.

Source: San Jose Spotlight

Almaden Plaza in San Jose is getting a couple new stores

Tomorrow will be Barnes & Noble's last day at Almaden Plaza in South San Jose. That space along with the former spaces for Buy Buy Baby, Compass Real Estate, and Tuesday Morning will be merged into a single 81,000 SQFT anchor space. Sports Basement is planning to take that anchor spot later this year.

Tillys is also leaving its 10,500 SQFT store at the end of the month. That was actually the first Northern Californian location of that brand. However, the space is already destined to be replaced by Sephora sometime this summer.

Source: SVBJ

Kaiser begins construction of their new San Jose hospital

A state-of-the-art hospital is coming to the Santa Teresa Kaiser campus in South San Jose. It will replace the aging 50-year-old hospital with 650,000 SQFT of medical facilities and 300 private patient rooms. 

This is more than double the size of the hospital it will be replacing. Rooms will no longer need to be shared, a very welcome change for most patients. Kaiser is also going to leverage new technologies such as the latest MRI and CT scanning equipment. 

The new hospital is expected to be completed in the fall of 2029.

Source: The Mercury News

Blossom Hill housing project moves forward

A parking lot at the Blossom Hill VTA station is getting one step closer to becoming a 328 home project. The six-story building will have 239 market-rate homes and 14,000 SQFT of retail on the ground floor. A five-story building across the street will have 89 affordable housing units. The project would also create a new transit plaza for South San Jose VTA riders and a walking/biking trail along Canoas Creek.

While the project was approved in 2022, not a lot has happened. The affordable housing component just received a $5.5 million boost from the government.

In a best-case scenario, the affordable housing piece will start construction in the summer of 2025 with the market rate portion to follow.

Source: SVBJ

New Kaiser Permanente San Jose Medical Center

A greatly improved Kaiser Permanente San Jose Medical Center is being proposed for 250 Hospital Parkway. The project would involve the demo of the existing 250,000 SQFT hospital and building a significantly larger 685,000 SQFT facility along with a 35,000 SQFT energy and service yard.

The new hospital would have 303 beds, up 56 from the current hospital, as well as multiple medical office buildings. The old hospital would only be demolished after the new one is complete.

Improved medical facilities would obviously be a big win for San Jose residents. Hopefully this can be completed as soon as possible.

Source: SF YIMBY

All Big Lots stores in the Bay Area will close except for one San Jose location

If you're a fan of Big Lots, I have some bad news and good news. The bad news is that the locations in Santa Clara, Milpitas, Gilroy, Livermore, Fairfield, Vacaville, Hercules, and Concord are all closing down. The good news is that there will be one location left standing at 1832 Hillsdale Avenue in San Jose. The location is in Cambrian Park near where Hillsdale turns into Camden Avenue.

Big Lots lost $205 million last quarter and are closing over 40 stores across the US.

Source: SVBJ

 

New single family housing suburb proposed for San Jose's Almaden district

If you thought single family construction was over in San Jose, guess again. Latala Homes plans to build 177 new detached homes, averaging just under 2,500 SQFT per home at 20202 Harry Road. 36 of those homes will be designated as affordable for low-income households. The site is currently an empty field so no demo work would be necessary.

Before the urbanists get up in arms, this is already as deep into the suburbs as you can possibly get. There is nothing walkable anywhere near here and there probably never will be. If you're wondering where Harry Road is, it's where Almaden Expressway literally dead-ends. That is how deep this project is into Almaden. The silver lining is you can go horseback riding or visit one of San Jose's most romantic and isolated restaurants, La Foret, with a short drive.

Based on the area, I think most of these homes will likely go for around $1,000/SQFT, so you're probably looking at a range of $2M-$3M depending on how wide the range of home sizes will be.

Source: SF YIMBY