San Jose: Steady, Increase, or Pending Drop?

Honolulu, HI · Member since 2015 · 214 posts · 49 votes

San Jose Investors. What do you folks think? I hear some say SJ is still growing with potential new IT space attractive to some companies. Like the new Google facility at Diridon. I see others say SJ may be headed towards a decline.

What are your predictions and why?

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Robert Schumacher

Investor · Campbell, CA · Member since 2016 · 76 posts · 91 votes

@Gary F - Have you checked with the San Jose EDC? I looks like someone is building about 500 units on Winchester Blvd. Personally, one of my investing objectives is to make sure the property cash flows. I haven’t found that in our area. For this reason, I have purchased out a few hours. Let me know if you want to grab a coffee. I’m in South Bay too. Cheers

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Ivan Vasquez
Contractor · San Jose, CA · Member since 2020 · 32 posts · 17 votes
6y
@Gary F. - if you see the homes that were sold recently in San Jose; see the sold price vs their listing price... you’ll see homes were sold below asking price. This surprised me. I think people are going to sell to cash out on their equity of the fear of it dropping and hope to find a better deal in this pandemic.
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Spencer Hsu
Realtor · Palo Alto, CA · Member since 2016 · 76 posts · 20 votes
6y
Depends on the area in SJ and what happens with the google village project. It'll be disappointing if Google Village doesn't play out.
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Carrick Young
Rental Property Investor · San Jose, CA · Member since 2015 · 83 posts · 44 votes
6y
@Spencer Hsu I do a lot of work on the commercial side in Downtown San Jose and I could not agree more with you on the Google Village Project. Crossing my fingers that continues.
On the commercial side of the industry, we've seen sales on office product come to almost a halt. Here, we're seeing some of the larger investors turning more towards Single Tenant NNN leases with tenants that have investment grade credit.
With hotels, I have a friend who works for a Private Equity firm that buys this asset class. Locally, they aren't underwriting 2019 NOIs until 2023...
As the economy starts to reopen here we're seeing more signs of activity, but the future of local office space remains to be seen.
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Spencer Hsu
Realtor · Palo Alto, CA · Member since 2016 · 76 posts · 20 votes
6y
For those interested. June was a record month for San Jose. Single Family homes have done much better than condos/townhomes.
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Carrick Young
Rental Property Investor · San Jose, CA · Member since 2015 · 83 posts · 44 votes
6y
@Spencer Hsu great info. Definitely seeing these trends play out. A neighbor sold a house in San Jose last June for $1M. The house next door just closed this week - similar finishes, age, and size - and it closed for $1.3M...
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Spencer Hsu
Realtor · Palo Alto, CA · Member since 2016 · 76 posts · 20 votes
6y
Originally posted by @Carrick Young:
@Spencer Hsu great info. Definitely seeing these trends play out. A neighbor sold a house in San Jose last June for $1M. The house next door just closed this week - similar finishes, age, and size - and it closed for $1.3M...

Yeah that's incredible. Year over year certainly didn't go over 30% so kudos to that agent!

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