The effects of the COVID pandemic have been severe for most businesses, yet in downtown San Jose, hope springs eternal. Fresh signs of optimism are sprouting throughout the city center, just as winter turns to spring.
One of the encouraging signals comes from Boston Properties and CPP Investments, who announced Feb. 16 that construction has resumed on the first phase of their Platform 16 development in Downtown West after nearly two years of limbo.
On March 4, 2020, Mayor Sam Liccardo led a joyful groundbreaking ceremony for the 1.1 million square-foot speculative office project at 440 W. Julian St. Less than two weeks later, the pandemic shutdowns began and construction was halted.
“Once a symbol of the pandemic uncertainty, Platform 16 is again a symbol: this time of momentum, the strength of Silicon Valley office demand and the pandemic receding,” said Scott Knies, executive director of the San Jose Downtown Association. The first phase of the three-building Platform 16 includes a 390,000 square-foot creative office building and the below-grade parking garage that will serve the entire 5.6-acre site. The developers plan for building occupancy in 2024.
“San Jose specifically continues to see demand for high-quality, creative workspaces outpace supply,” said Bob Pester, executive vice president of Boston Properties’ San Francisco region.
Westbank and local partners Urban Community also announced in February it is ready to raze Parkside Hall and initiate construction on Park Habitat, a 20-story, 1.2 million square foot office building that includes nearly 61,000 square feet of museum space for its next-door neighbor, The Tech.
Park Habitat’s other next-door neighbor, the 200 Park Avenue office building by Jay Paul Company, is installing its glass curtain wall and progressing toward project completion next year.
Meanwhile, Adobe continues construction on its north tower project and looks to make a connection over San
On the residential front, MIRO across from City Hall and the 188 W. St. James Towers represent more than 1,000 new units. In just a few months, MIRO’s east tower is about 40 percent leased and the west tower at the corner of Fourth and Santa Clara streets will open this month, said Ted McMahon of Bayview Development Group. Fernando Street to link its four-building headquarters complex.
Condos at 188 W. St. James just started selling in February. Office workers, residents, conventioneers and business travelers are very welcome to downtown’s small businesses.
“We have built our entertainment district,” said Mike Messenger, owner of several properties in San Pedro Square. “Now we need people back in the offices and patronizing our businesses.” Nothing suggests optimism more than a wedding, and Messenger’s Blanco Urban Venue has sold out Saturday matrimonial parties through the summer, he said. Blanco expects to host 90 or more events in 2022, twice the number of 2021. San Pedro Social wants to be just that – social – so Messenger delayed its planned 2021 grand opening until March 3, when more people could enjoy its bowling, games, food and drink.
Santa Clara County Health Department officers plan to lift the indoor mask mandate on March 2, 2022, which will literally and figuratively provide breaths of fresh air. Still, COVID-related issues linger.
“We
have struggled,” said business owner Rodney Baca. “But that hasn’t stopped us from growing.” The Shop by Chef Baca on East Santa Clara Street is currently closed except for private events, but remains the base of his operations, which now includes the eatery space at the Dr. Martin Luther King, Jr. Library at Fourth and San Fernando streets, one of downtown’s busiest pedestrian intersections.
Baca has been doing plenty of staff appreciation catering events at San Jose State University as students have returned to classes full time after three semesters of online or hybrid schooling. He also has The Shop by Chef Baca locations at SAP Center and Levi’s Stadium and put up with the protocols necessary for fans to enter the arenas, which has reduced attendance, especially for Sharks games.
“For us, following the guidelines of the pandemic is the new way,” Baca said. “They are great locations for exposure, but you have to understand the dynamic of those kinds of businesses. It might be 70 hours one week and seven hours the next. That’s tough monetarily.” Managing such inconsistent schedules is even more difficult when coupled with other “devastating” issues such as limited manpower and the low-experience level of service industry workers, he added.
A host of downtown businesses still operate limited hours or are hesitant to re-open. Some have closed for good. After two years of contemplation, the Borkenhagen family, Steve and sons Max and Michael, opted to move onto something else after opening Eulipia in 1977 and Café Stritch in 2012 at 374 South First St. In the one-door-closes-and another-opens world of downtown, they leased the space to a co-worker, who is opening a new music and food concept called Mama Kin in the same venerable SoFA location.
San Pedro Square restaurants hope for a long-term resolution to Al Fresco dining on San Pedro Street in the next few months and a return of more workers, albeit on hybrid schedules, to downtown offices. “There are lots of exciting things happening and coming to downtown,” Chef Baca said. “Our best approach is to embrace the future and work with each other, promote all the great events and we will all start to flourish.”