San Jose

Office Lease Market Report

Average Rate ($/sqft/yr)
$29.10
High: $35.40 | Low: $22.80
Average Size (sqft)
17,967
High: 93,650 | Low: 796

Last Updated July 5, 2014

San Jose Office Space

The third largest city in California and self proclaimed “Capital of Silicon Valley”, San Jose, is located in the San Francisco Bay area of California, with close proximity to San Francisco proper, and surrounding areas. Due to its being the hub of Silicon Valley, the area has one of the highest costs of living in the United States, and some of, if not the highest office rental rates in the San Francisco area.

While urban sprawl and annexation is responsible for most of the growth that occurred in San Jose, the tech bubble of the 1990s and 2000s only served to increase the cost and population of the city. With a population of nearly one million, San Jose is the ten largest city in the United States, while simultaneously the having the highest median income of any city in the United States over 280,000.

San Jose at a Glance

First founded in 1777 as the first settlement in the Spanish colony of Nueva California, San Jose’s economy was primarily based on agriculture the first 200 years of its existence. It was only until the mid 20th century, when it was one of the only undeveloped areas of land in the San Francisco Bay Area, that San Jose began rapid development. With returning American GIs, looking for places to build, and an ever-increasing focus on technological development during the Cold War era, San Jose began to obtain its place as the king city of tech. Much of what is now considered San Jose, was annexed during the 1950s and 1960s under city manager AP “Dutch” Hamann, who sought to make San Jose the new “ Los Angeles” San Jose’s position in regards to Silicon Valley and technological development in general, led housing costs to increase nearly 1000% between 1976 and 2001, a trend which has only continued as space becomes a luxury in the San Francisco region.

Where to rent in San Jose

For those looking to rent office space in San Jose, the city literally is your oyster. While crime is typical of large cities; the city has been designated 19th out of the United States’ most walkable cities, with access to areas of the city aided by a large mass transit system. Potential office renters should be prepared to pay extremely high rental rates, but will also benefit from the prime location that comes with being in the middle of Silicon Valley.