More Homes, Fewer Offices: Major Housing Development Proposed for Prime San Jose Site

Big changes are on the horizon for San Jose as more than 100 new homes could soon replace a large office building. The updated project proposal for 2107 North First St. envisions more housing than initially planned, reflecting the evolving needs of our community. Located on a 3.9-acre site currently occupied by an office building and surface parking lot, the new plans call for the development of 105 townhomes. Which is up from the 85 initially proposed. This site is ideally situated next to the corporate headquarters of tech giant PayPal and near many other tech companies in North San Jose.

To make way for this exciting housing development, the six-story office building totaling 103,200 square feet will be demolished. This shift from commercial to residential use highlights a growing trend among property owners and developers who are seeking to repurpose office spaces for housing.

The impact of the post-coronavirus pandemic market on office buildings has driven many developers to explore alternative uses for commercial properties. With the rise of remote work and a notable decrease in the demand for office space. The repurposing of office buildings into residential units has become an attractive option. Even as pandemic-related restrictions have eased, many workers continue to work remotely, reducing the need for large office spaces. Tech companies have scaled back their office footprints and implemented job cuts, contributing to higher office vacancy rates.

The property is owned by the local real estate firm Stanley Group. However, it remains unclear whether Stanley Group will develop the project themselves if the city approves the plans.

Source: The Mercury News