Presented to the Community & Economic Development Committee of the San Jose City Council in June, the report on the status of Downtown was both sobering and hopeful. Blage Zelalich, Acting Director of Business Development and the Downtown Manager noted that overall the data on Downtown’s economy are not reflective of a severe downturn, although the number of closed businesses and lack of pedestrians is a concern.

The statistics still show a robust urban core – Downtown has 27,000 jobs and 24,000 residents, eight million square f

Considering that the pandemic closed offices, restaurants, bars, hotels, theaters, sporting events, conventions, museums and travel – all key elements that make our downtown vibrant – the situation is actually quite encouraging.eet of current office space and three million square feet actually under construction, 36,000 San Jose State University students and a median household income of $113, 897. Downtown’s office vacancy rate is 17.45%, up from 13% in 2019, and asking rent is $4.50 per square foot, down a few cents from 2019.

One example is that 160 business licenses in Downtown are less than a year old, meaning that they started up during a global pandemic. And of the 3,700 businesses in Downtown, the average age is 11 years, a good sign of stability for existing businesses. 45% of downtown businesses are small- to medium sized, and of those more than one-half are sole proprietors.

In addition to small businesses that took such a hit during the pandemic, the downtown area is home to large companies that were able to support work from home – 110 of our Downtown companies represent 65% of the workers in Downtown.

Investments being made in Downtown San Jose are a measure of confidence in the area’s growth potential, and Zelalich reported exciting progress in creative rehabs of venerable buildings including the former JC Penny, Bank of Italy and form Walgreens buildings on East Santa Clara. In addition to the Downtown West/Google projects going ahead, there is also a good roster of entitlements working through the City process for multiple residential, commercial and mixed-use projects all across the Downtown core.

New urban living opportunities are coming on line, with City Hall’s newest neighbor, MIRO, open on August 1, 188 West St. James later in August, and the recently opened Grad is 55% leased.

As murals burgeon over city streets, holiday light shows energized the evenings and 30 businesses are enthusiastically operating alfresco, Zelalich described the general feeling in Downtown right now in the words of the BeeGees – “Stayin’ alive”!

For all the details, watch the video of the presentation, and review the slides.