San Jose Recently Named Top U.S. Market for New Office Development
SAN JOSE, Calif. – CBRE announced today that a new mixed-use development, The Boulevard, is coming to San Jose’s West Valley, located in the heart of the Stevens Creek Urban Village. Cypress Equities and Life Time Athletic are leading the project, which will include 284,000 square feet of Class A office space, 16,000 square feet of ground-floor retail and a 1,200-stall parking garage. The development will feature a three-story, 120,000-square foot Life Time athletic resort, making it the first in the area designed with health and wellness. CBRE’s Shane McNulty and Mike Grado are marketing the project for lease.
“The pandemic has accelerated the evolution of the workplace. The Boulevard will offer the next generation of office space, combining wellness features with elements designed to support a collaborative workforce,” said Mr. McNulty, senior vice president with CBRE’s San Jose office.
Designed to LEED Silver standards, the office building will have high-performance glass facades and an on-site storm water management and bio-retention system. Open atriums, outdoor living rooms and break-out balconies throughout the building provide collaborative meeting spaces with open air flow. The rooftop deck doubles as an event space with views of the San Francisco Bay, the surrounding city and the mountains. The development will also include a half-acre outdoor area with a landscaped plaza, shaded outdoor meeting and dining areas, and a garden featuring native trees and plants. HKS is the project architect.
“Cypress is excited to bring this new mixed-use development to San Jose. Not only will the development bring commercial space to the heart of the Stevens Creek Urban Village, the project will also feature an approximate half acre of open, public space at the corner of Steven’s Creek Boulevard and Saratoga Avenue. The development will provide pedestrian friendly ground floor retail space, new 30-foot-wide landscaped sidewalks and secured bike storage. The new Life Time Athletic will provide an unmatched amenity for the surrounding community as well as the office tenants,” said Chris Maguire, CEO, Cypress Equities.
Life Time, the nation’s premier healthy lifestyle brand, is bringing its unmatched luxury health and wellness experience to the area. It currently operates five clubs throughout California. The three-story athletic club will include everything one could imagine for healthy living including studios, a spacious fitness floor, an outdoor fitness space and rooftop pool and beach club. Other highlights include a full-service LifeCafe, a full-service LifeSpa and a Kids Academy for children from three months to 11 years old, which will include a host of classes designed to foster healthy habits from an early age including physical activities, arts and crafts, and language. Expected completion is in late 2023.
“Our Life Time vision is to change the way consumers use and think about mixed-use spaces,” says Life Time Executive Vice President, Property Development, Parham Javaheri. “The Boulevard will become a focal point in San Jose, which has a great demographic for Life Time, and together we will bring renewed energy to this important community hub, while serving as a health and wellness destination for individuals and families alike.”
The project is located at the corner of Stevens Creek Boulevard and Saratoga Avenue. The site is near many of Silicon Valley’s large tech employers and is a 10–15-minute reverse commute from downtown San Jose, CalTrain’s Santa Clara Station and San Jose Mineta International Airport.
San Jose was recently named the No. 1 market for office development opportunities in CBRE’s inaugural U.S. Development Opportunity Index. The report ranked the top 50 U.S. markets by population based on four performance categories: construction costs, fundamental strength of existing supply, prior cycle performance and property forecast. San Jose’s top ranking for office construction was helped by its balanced supply pre-pandemic. The market’s office inventory has increased steadily since 2010, and strong preleasing for office buildings under construction (62%) points to a fundamentally healthy future for new additions.
The Boulevard has been fully approved by the City of San Jose. The project is slated to begin construction during the fourth quarter of 2021 and deliver approximately 22 months later.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2020 revenue). The company has more than 100,000 employees serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services.