The Current State of the San Jose CRE Market
A Hub of Innovation and Growth
San Jose is the heart of Silicon Valley. With global tech giants, startups, and a steady stream of venture capital, the city boasts long-term growth potential. While some sectors have seen price adjustments post-pandemic, the fundamentals remain strong, especially for well-located assets near transit hubs and tech corridors.
Adjusted Pricing = Strategic Entry Points
After years of climbing prices, the market has started to stabilize. While interest rates have gone up, many sellers are now more realistic on pricing, creating a rare window of opportunity for buyers with cash or strong financing.
This doesn’t mean every deal is a good one, but it does mean there are better values on the table today than in recent years.
Why Consider Buying Commercial Property Now?
1. Lower Competition Among Buyers
The frenzy of 2020–2022 has cooled. With many investors taking a wait-and-see approach, serious buyers have more negotiating power, better terms, and less bidding competition, especially in sectors like retail and office.
2. Tenant Demand Is Rebalancing
Retail, industrial, and flex spaces in San Jose are seeing renewed demand. As remote work finds its equilibrium and consumer behavior evolves, many tenants are right-sizing or relocating, giving landlords the chance to attract stable, long-term tenants at competitive rates.
3. Opportunities for Long-Term Wealth Building
Whether you're a seasoned investor or new to commercial real estate, buying now in a transitioning market allows you to build equity during the recovery, rather than paying a premium once things heat up again.
What Types of Properties Are Performing Well?
Flex & Industrial
With the rise of e-commerce, biotech, and light manufacturing, flex and industrial properties remain hot. San Jose’s proximity to transportation infrastructure makes it ideal for logistics and innovation hubs.
Neighborhood Retail
Well-located strip centers and single-tenant NNN properties continue to draw interest, especially those with service-based or “essential” tenants (think medical, food, or convenience retail).
Redevelopment Opportunities
Underutilized properties near transit corridors or downtown cores offer potential for repositioning, whether into mixed-use, medical office, or multifamily projects.
What to Watch Out For
Interest Rates & Lending
Higher rates mean it's more important than ever to run the numbers. Make sure your projected cash flow justifies the cost of debt, and talk to a CRE-savvy lender about flexible financing options.
Due Diligence is Key
San Jose zoning can be complex. Before you jump into a redevelopment play or buy a vacant asset, consult with a local expert (hi, that’s us!) to assess feasibility, permitting, and long-term upside.
Is It the
Perfect
Time to Buy?
Let’s be honest, there’s rarely a perfect time to buy in commercial real estate. But there
are windows when the market favors thoughtful, well-informed investors. Right now, San Jose is offering:
- Better pricing than the peak years
- Motivated sellers in some sectors
- A resilient, innovation-driven economy
- Long-term value for buyers is focused on strategic growth
How The Calvillo Group Can Help
We’re not just brokers, we’re your commercial real estate advisors. Whether you’re looking for a stable NNN property, a value-add retail center, or a redevelopment play near downtown, we help you:
- Evaluate deals with real market data and cash flow analysis
- Navigate zoning and development risks
- Access off-market opportunities through our local network
- Build a long-term strategy tailored to your investment goals
Ready to Explore San Jose Commercial Property?
Let’s talk through your goals and see if now is the right time to make a move. Whether you’re ready to buy or just gathering information, The Calvillo Group is here to guide you through every step of the process.
