LBA Realty Pursues 800,000 SQFT Office and Retail Development in San Jose

Lumileds, San Jose, Irvine, LBA Realty, CBRE, Verizon, ASML, E-Bay, Jones Lang LaSalle, JLL, Silicon Valley, San Jose International Airport, San Francisco Bay Area
Rendering Courtesy of LBA Realty

By Meghan Hall

The site of Lumileds’ operational headquarters, a global lighting manufacturer, could soon become just one part of a highly-anticipated, mixed-use development with office, retail and a hotel totaling more than one million square feet of space. Called North Town San Jose and proposed by Irvine, Calif.-based LBA Realty, additional details about the 68-acre campus were released via a marketing brochure put together by commercial real estate firm CBRE. The brochure indicates that in addition to the current Lumileds’ building, 800,000 square feet of office, 100,000 square feet of retail and a 250-key hotel are planned for the site, located at 350 and 370 W. Trimble Road.

The first part of the project, proposed in December of 2017, will include approximately 120,000 square feet of office space and the hotel on a 14.0-acre portion of the site bordered by Orchard Dr., W. Trimble Rd. and the Lumileds’ facility. Site plans included in the brochure indicate that the 100,000 square feet of retail would eventually be concentrated on the north end of the property. Marketing documents also highlight potential future development of the current Lumileds parking lot next to the Guadalupe trail and river, and a new research and development, office or industrial campus to the south.

The brochure focuses on the specifics of the new 120,000 square foot office building, which is expected to feature a two-story creative space, 3/1000 parking, utility basement and mezzanine space. Overall, the development is anticipated to include flexible and high-bay options, contemporary architecture and amenity and flex buildings. The future campus will also feature “super-plates,” floor plates up to 100,000 square feet in size, an important factor given that several of the campus’ current neighbors include  global technology companies such as Verizon, ASML and E-Bay.

The property is being posited as the “new downtown of North San Jose,” perhaps fitting for a part of town that has seen a recent increase in investor interest. Much of the region’s real estate is driven by rapidly growing technology companies looking for larger floorplates in which to consolidate their employees. According to a Silicon Valley office report released by brokerage firm Jones Lang LaSalle (JLL) at the end of the first quarter, a significant amount of office leasing activity occurred in North San Jose at the beginning of the year, the result of large tech tenants looking for room to expand. And, compared to some of Silicon Valley’s tightest submarkets, North San Jose has plenty of room for growth. With a total vacancy rate of 35.1 percent, North San Jose has more inventory available than any other submarket in Silicon Valley. 

Creating a walkable, high-density and mixed-use district near major transportation routes such as U.S. Route 101 and San Jose International Airport are environments that major companies increasingly desire and is something that North San Jose, with its sprawling office parks, currently lacks.

When the first phase of the North Town project will break ground is unclear. The 14-acre site was initially purchased in March 2017 by LBA Realty for $130 million and future project plans are expected to be consistent with the 2005 North San Jose Development Policy and San Jose 2040 General Plan, which will allow for 26.7 million square feet of new industrial and office space and 32,000 residential units in the area. Representatives of LBA Realty did not return The Registry’s request for comment in time for the writing of this article.

According to its website, LBA Realty owns and operates more than 13 million square feet of office space in major markets across the United States including California, Colorado, Washington, Oregon and Arizona. According to its website, LBA Realty owns 10 properties throughout the San Francisco Bay Area, including a 120,480 square foot facility at 2277 Pine View Way in Petaluma and a 149,000 square foot office building at 222 Kearny and 180 Sutter in San Francisco. 

LBA Realty did not respond to The Registry’s request for comment in time for the writing of this article.

West Coast Commercial Real Estate News