SAN JOSE, Calif. – San Jose has given the green light to a massive new office complex, but city officials and the developer aren’t revealing the name of the technology company that will occupy it.
The city gave final approval to the project Wednesday, the San Jose Mercury News reported (http://bit.ly/1gWGFFd ). Local real estate developers say it’s one of the largest Silicon Valley office projects they have seen.
“This would be the proverbial granddaddy of them all,” Jim Beeger, a senior vice-president at Colliers International, told the Mercury News.
Whoever the tenant is, it is poised to become the second-largest private-sector employee in San Jose, behind Cisco Systems Inc., which employed 13,000 workers as of last year.
The project is set to comprise 2 million square feet spread out over 10 seven-story structures at the split of U.S. 101 and Interstate 880, near the Mineta San Jose International Airport. With space for 8,000 to 10,000 employees, it will be twice the size of Facebook Inc.’s Menlo Park campus. The campus will include 7,000 parking spaces and a fitness centre, and the value of the buildings is estimated to be $700 million.
The developer, Peery-Arrillaga, confirmed it has a company committed to leasing the buildings but declined further comment to the Mercury News.
San Jose Mayor Chuck Reed said he knows the identity of the company, and it’s in the technology sector. But he said he would respect the developer’s wishes to announce the tenant when it’s ready.
“I haven’t told anybody,” Reed said. “I’m going to keep it a secret.”
Reed added that the city is likely to receive $7 million in annual property tax revenue from the complex, in addition to millions of dollars of one-time construction fees.
Construction is expected to start this year.
Information from: San Jose (Calif.) Mercury News, http://www.mercurynews.com