Google's Buying Spree Spurs Jump in Downtown San Jose Real Estate Prices
Google has been picking up several Downtown San Jose properties for a huge new campus the tech giant is creating there. The future development is expected to hold as many as 20,000 Google employees near the Diridon train station, creating a transit village that will revitalize the South Bay neighborhood.
Google’s property-buying spree is also triggering a sharp growth in area commercial real estate prices. According to a Mercury News report, the corporation and its development partner Trammell Crow paid an average 37 percent more to acquire properties than they had paid two years ago for a nearby deal.
One seller, Peggy Schlosser, made $1 million this year after selling a 5,663-square-foot property to Trammell Crow’s affiliate TC Agoge Associates. That purchase, which cost roughly $177 per square foot, is 21 times more expensive than the property’s most-recent assessed value earlier this year of $8.50 per square foot.