SAN JOSE — Some commercial space in a big apartment building in downtown San Jose might be converted to housing units, a fresh example of economic shifts in the wake of the coronavirus.
The conversion is expected to involve ground-floor spaces that had been set aside for retail or office tenants in a 249-unit apartment building at 717 West Julian Street in downtown San Jose.
The conversion is expected to produce 19 residential units in the six-story apartment building, which is at the corner of West Julian Street and Stockton Avenue a short distance from the SAP Center and Diridon train station.
The residential complex is known as Hanover Diridon and was built in 2021.
Roughly 26,500 square feet of commercial space is slated to be transformed into 19 residential units, documents on file with San Jose city planners show.
On-site amenities in the Hanover Diridon apartment building include a pool, fitness center, clubhouse, rooftop terrace, game room, media and movie center, and conference rooms, according to the property’s website.
It wasn’t immediately clear when the conversions of the commercial spaces might begin or be completed. The project plans didn’t state how large the converted housing units might be.
In the wake of the coronavirus outbreak, property owners in large American cities have encountered worsening obstacles in their efforts to attract retail and office tenants to their buildings.
These retail and office leasing challenges extend to the downtown districts of the Bay Area’s three largest cities, San Jose and Oakland.
The economic woes are particularly acute in San Francisco, which is suffering an exodus of retailers and office tenants that has unleashed an economic “doom loop” in that city.
At least two downtown San Jose office towers are under active consideration as candidates for conversion to residential units due to the tough leasing environment.