San Jose, CA Commercial Real Estate Market Trends
Commercial Real Estate Market Report
This page provides a high-level view of commercial real estate conditions in San Jose, combining current pricing, property scale, and active inventory to support early market evaluation.
Explore Commercial Properties in San Jose
Browse properties currently for sale or lease to see how local market pricing and building sizes translate into real opportunities.
San Jose's Demographic Profile
With a population of 946,578 and a median household income of $130,163, these metrics help investors gauge whether San Jose's pricing reflects local demand fundamentals.
| Key Demographic Metrics | Value |
|---|---|
| Population | 946,578 |
| # Households | 306,554 |
| Median age | 39 |
| Median household income | $130,163 |
| Avg household size | 3 |
| Renter-occupied housing units | 142,935 |
| 5-year population change | -4% |
Commercial Real Estate Market Snapshot in San Jose
These market metrics outline current pricing, typical deal size, and observed cap rate ranges, giving investors a quick read on entry costs and high-level underwriting expectations.
| Key Market Metrics | Value |
|---|---|
| Avg asking sale price | $590 per SF |
| Avg asking lease rate | $36 per SF |
| Avg unit size for lease | 13,369 SF |
| Avg building size for sale | 14,815 SF |
| Average cap rate | 5.34% |
In San Jose, commercial properties are currently listed at an average sale price of $590 per square foot, with average lease rates around $36 per square foot. Typical leased spaces are approximately 13,369 SF, while properties for sale average 14,815 SF in building size. Observed cap rates average 5.34%, offering a reference point for return expectations relative to pricing and deal scale.
Commercial Properties For Sale In San Jose
Commercial Market Metrics by Property Type
Office Building Market Metrics Near San Jose
Office market metrics highlight how pricing, typical deal size, and return expectations vary across submarkets, helping investors compare entry costs and yield potential efficiently.
Industrial Property Market Metrics Near San Jose
Industrial market data shows how cost per square foot and typical building size differ by submarket, supporting comparisons around deal scale and pricing alignment.
| Nearby Industrial Markets | Avg Cost/SF | Typical Size | Cap Max |
|---|---|---|---|
| San Jose | $483 | 23,135 SF | 7.07% |
| Milpitas | $421 | 12,349 SF | 6.40% |
| Santa Clara | $452 | 17,861 SF | 7.00% |
| Sunnyvale | $598 | 15,255 SF | 5.15% |
Retail Property Market Metrics Near San Jose
Retail pricing varies widely across nearby markets, making this comparison useful for identifying where cost per square foot and deal size diverge most.
| Nearby Retail Markets | Avg Cost/SF | Typical Size |
|---|---|---|
| San Jose | $734 | 10,343 SF |
| Campbell | $1,012 | 2,718 SF |
| Milpitas | $506 | 8,082 SF |
| Santa Clara | $816 | 10,491 SF |
| Los Gatos | $934 | 7,812 SF |
Multifamily Property Market Metrics Near San Jose
Multifamily metrics show how pricing and building size relate to observed cap rate ranges, helping investors evaluate income potential relative to entry cost.
| Nearby Multifamily Markets | Avg Cost/SF | Typical Size | Cap Max |
|---|---|---|---|
| San Jose | $481 | 10,443 SF | 7.68% |
| Santa Clara | $551 | 7,757 SF | 5.19% |
| Sunnyvale | $514 | 13,197 SF | 5.35% |
| Mountain View | $517 | 21,449 SF | 5.49% |
| Palo Alto | $590 | 34,792 SF | 5.49% |
How Investors Evaluate Commercial Real Estate Markets in San Jose
Nearby Commercial Markets
Comparing nearby markets helps investors see whether San Jose pricing and building scale sit above, below, or in line with surrounding areas.
| Commercial Markets | Avg Cost/SF | Average Size |
|---|---|---|
| San Jose | $590 | 14,815 SF |
| Campbell | $717 | 7,392 SF |
| Milpitas | $439 | 10,818 SF |
| Santa Clara | $584 | 16,360 SF |
| Los Gatos | $981 | 13,057 SF |
Multifamily For Sale In San Jose
Regional Demographic Comparison
This comparison places San Jose alongside nearby cities to show how population size, household counts, and income levels differ across the region. Viewing these markets side by side helps investors understand whether local demand and income characteristics are concentrated in San Jose or distributed across surrounding areas.
| City | Population | # Households | Age | MedianHouseholdIncome | AvgHouseholdSize | RenterOccupiedHousingUnits | FiveYrPopGrowthPct |
|---|---|---|---|---|---|---|---|
| San Jose | 946,578 | 306,554 | 39 | $130,163 | 3 | 142,935 | -4% |
| Campbell | 39,919 | 15,775 | 41 | $134,388 | 2 | 8,128 | -4% |
| Milpitas | 76,186 | 23,722 | 39 | $163,030 | 3 | 10,214 | -3% |
| Santa Clara | 126,841 | 46,683 | 37 | $158,769 | 3 | 28,064 | -3% |
| Los Gatos | 31,443 | 12,043 | 47 | $186,857 | 3 | 4,376 | -4% |
FAQs About Commercial Investing in San Jose
San Jose offers commercial properties across a wide range of sizes and price points. By reviewing the market data and benchmarks on this page, first-time investors can better understand what a typical commercial property looks like before committing capital and narrowing in on specific listings.
The pricing and size metrics on this page help business owners compare the cost of ownership against leasing in San Jose. Typical building sizes and asking prices provide a starting point for evaluating space needs, budget fit, and long term occupancy costs before engaging lenders or brokers.
Conservative investors often prioritize manageable deal sizes, stable pricing ranges, and cap rate benchmarks shown for San Jose. These metrics help assess whether current market conditions support steady income potential without relying on aggressive assumptions.
Nearby market comparisons highlight differences in pricing, building scale, and cap rate ranges relative to San Jose. Reviewing these side by side helps experienced investors identify relative value, pricing premiums, or alternative markets that may better align with return targets.
This page provides high-level benchmarks for pricing, deal size, and observed cap rates in San Jose, which are useful for initial market filtering. Institutional and data-driven investors often use these signals to prioritize listings that meet size, pricing, and return thresholds before deeper underwriting.
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