In 1850, the city of San Jose became the first incorporated city in the state of California, as well as the state’s first capital. From its beginnings as an agricultural and farming community, to the center of technology that it is today, San Jose has undergone major changes in its relatively short history. These days, the changes seem to be coming more rapidly than ever, with the tech industry driving much of that change.
Google’s development of a new campus in Downtown San Jose will have far reaching effects on the immediate area, and by extension, the entire city. The project seeks to build a transit village, built not only around the campus, but around the transit hubs of the Caltrain station and the future downtown BART connection. Vast housing developments, commercial retail, and recreational amenities are slated to be part of the renewed area. The new campus and the surrounding village have the potential to become an economic engine, not only for the tech giant, but for the adjacent industries as well. Services catering to the tech industry will potentially have new opportunities for growth and expansion.
Real Estate Impact
We don’t have a crystal ball to predict the economic impact of such a significant project. In the past, transit-oriented centers have brought tremendous potential for growth. And a transit center, next to a major tech campus? That’s quite a combination. However, we still don’t know the lasting effects of the pandemic on how people will work in the future. Before Covid, this project would check all of the boxes of a well-planned, modern development. At the moment, we’re still in the midst of the pandemic, and we really don’t know what “normalcy” will look like in the coming years. Will we see a shift in work culture? Will the tech migration continue?
New developments like this are already a boon to existing real estate owners, as property values have continued to rise in Bay Area. While new investments are definitely not “getting in on the ground floor,” future growth fueled by an industry giant like Google will likely have room to prosper. Right now, the variables are many, so only time will tell how the changes today will affect our tomorrow.