As we are all aware, Google is coming. Plans are on the table to remake a portion of downtown San Jose into a massive, transit-centered Google village with up to 20,000 new jobs.
Adobe Systems Headquarters
Separately, Adobe Systems is expanding their workforce in their downtown headquarters from 2500 to 5,500, a whopping 3,000 more people in the downtown core.
However, the creation of the Google Village is so big that it eclipses even the Adobe news, which is enormous — the addition of 717,000 square feet and 3,000 employees.
Apple is coming to north San Jose, Amazon is arriving and smaller companies to service these tech giants are also eyeing commercial real estate. So the near future holds robust growth in jobs and income.
How will expansion impact housing costs?
If we consider 5,000 new high paying jobs coming into the downtown market, we know it will definitely create instant demand for housing, office space and retail.
And as we aware, when sudden supply comes online, there’s going to be activity to satisfy the demand. Which will result in rapid rise in prices in the rent until the supply can catch up with demand. The good news here is that there are five high rise development projects going into the downtown core now. Condos and lofts being built will hopefully be ready for purchase and rent by the time all the new jobs show up.
Stress on infrastructure
When thousands of employess show up needing a place to live, a place to for their children to go to school, healthcare, public open spaces etc, it has an impact on the city. It also has an impact on the residents that are already there. Silicon Valley has to find that balance of bringing in the new, but not pushing out the old. In that balance, jobs, housing, transportation, and more needs to work for everyone. Yes, there is an opportunity for a new brand real estate market-but to keep the lifestyle vibrant and accessible, we hope that the leaders of San Jose are able to find that balance.
View is the corner of West San Carlos and South Montgomery Streets where Trammell Crow has been buying properties at the behest of Google. Photo credit: San Jose Mercury News
Shamal Sawant
shamal.sawant11@gmail.com