Orphaned Knight-Ridder Sign in Downtown San Jose To Go

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The buyer used capital from the CBRE Strategic Partners U.S. Value 6 fund to buy the building, which is adjacent to the Fairmont Hotel, the San Jose Museum of Art and Cesar Chavez Plaza. This is a commingled fund that had a final capital raise of $1.1 billion in December. The investment strategy for the fund is to buy properties on a nationwide basis that have vacancy issues and add value by leasing the properties to a higher level.

[contextly_sidebar id=”696ee2267d294e97c0fdd802284265af”]Neither occupancy nor rents have moved substantially in the last year in downtown, according to Colliers International. About a quarter of the downtown office space is available, almost unchanged from a year ago, as were rents at $2.25 a square foot a month, based on a full-service rate.

“We expect that we will see strong second-quarter leasing as a result of the pent-up demand and pressure from tenants who are located on the Peninsula who are unable to identify affordable alternatives for their growth,” David Buchholz, a senior vice president with Colliers International in its San Jose office, said in an e-mail.

Wang said she is seeing increased demand from tenants for 60 S. Market, primarily midsized companies looking for 10,000 square feet up to as much as to 40,000 square feet. “I am starting to feel on the ground that downtown is getting pretty busy,” she said. “The rest of Silicon Valley and the Peninsula have been very busy, and I feel like we are getting some benefit.”

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