Sunday, June 4, 2023

Big new San Jose office building is in the works near the airport

SAN JOSE — A big new office building is in the works in north San Jose near the city’s airport, a project that if built, could accommodate well over 1,000 workers.

The building could become the newest addition to the Coleman Highline complex in north San Jose, a mixed-use tech campus that has become one of the most successful and valuable projects in Silicon Valley.

The new office structure would consist of an office building totaling 290,000 square feet, according to documents filed with the San Jose Planning Department.

A burst of potential leasing interest on the part of big tenants, including major tech industry players, prompted the primary developers of Coleman Highline, Cupertino-based real estate company Hunter Storm, to push ahead with the new building.

“We are seeing a lot of activity in the market,” said Curtis Leigh, a principal executive with Cupertino-based Hunter Storm. “So we decided to proceed with this building.”

The proposed site for the office building is 1185 Coleman Ave. in San Jose, the city documents show.

The office building would sprout across the street from the city’s international airport on a 4.5-acre site, according to the planning files.

“We plan to begin construction on the building this summer,” Leigh said.

Coleman Highline, property experts say, has become a big success, attracting tenants that have occupied big chunks of office space as well as investors that have bought several of the existing office buildings.

Roku, a streaming titan, is a tenant in several buildings in Coleman Highline. Roku has leased about 800,000 square feet. Roku has moved some employees into the space it leased, according to Leigh.

Yahoo, through a deal struck by its former owner Verizon, is a tenant in multiple buildings that total roughly 658,000 square feet. Verizon is attempting to sublease some of that space, although Yahoo has begin to move some employees into the building.

The fully leased status of Coleman Highline has attracted major real estate investors.

In 2020, New York City-based Blackstone Real Estate Advisors, through an affiliate, paid $275 million for two office buildings and an amenities building in Coleman Highline. Roku leases all three buildings.

In December 2021, London-based AGC Equity Partners paid a jaw-dropping $780 million for three office buildings that are slated to be a big employment hub for Yahoo.

The unexpected continuing strength of the office leasing market in Silicon Valley and plans by tech companies to expand amid coronavirus-linked economic uncertainties have helped to spur plans for the next ongoing expansion of Coleman Highline.

“The market is still strong even with the pandemic, which has been something of a surprise,” Leigh said. “We are going to keep going with the development plans as long as the market keeps going.”


World Nation News Desk
World Nation News Desk
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