Wobbly Bay Area office market spurs delay of huge San Jose tech campus

SAN JOSE — A huge tech campus proposed for downtown San Jose could be delayed for a few years, fresh evidence that the Bay Area’s wobbly office market and tricky economy continue to jolt real estate projects.

CityView Plaza, a massive office, retail and restaurant complex in downtown San Jose, is headed for a development delay. At full buildout, the project would total 3.4 million square feet.

Jay Paul Co., one of the Bay Area’s most successful and savvy real estate firms, owns the project site and intends to develop the property, which is bounded by South Almaden Boulevard, West San Fernando Street, South Market Street and Park Avenue.

The developer, acting through its affiliate SJ Cityview LLC, wants San Jose planners to authorize a five-year extension of a permit to develop the site, documents on file with city officials show.

The current development permit is slated to expire in June 2025. A five-year extension would mean the permit would then expire in June 2030, according to the city planning records.

Jay Paul Co. has completed an office tower at 200 Park Avenue, across the street from the CityView Plaza development site.

A delay for CityView Plaza appears to be a wise course of action for Jay Paul Co., in the view of Phil Mahoney, a Newmark commercial real estate agent who is one of the brokers attempting to find one or more tenants for the 200 Park office tower.

“It makes sense for Jay (Paul) to hold off on CityView,” said Mahoney, an executive vice chairman with Newmark’s San Jose office. “There’s no point to build more office space, given the demand right now.”

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