San Jose Office Rent Price & Sales Report

2023 Office Space Rent & Sales

  • $45.99 2023 Avg. Asking Rent
  • 4.82% Y-o-Y Avg. Asking Rent Change
  • 19.92% 2023 Office Vacancy Rate
  • $190M2023 Total Office Sales
  • $278.91Avg. Sale Price/SF

San Jose office price per square foot in 2023 was $45.99 on average. This marked a +4.82% change in office space price per square foot compared to the previous year. The local office market recorded an average vacancy rate of 19.92% across all asset classes combined. The 6 transactions that closed here throughout 2023 amounted to a total sale volume of $190M. San Jose office space commanded an average sale price per square foot of $278.91.

See how this market compares to the national average: U.S. office space rent & sales.

Average Rent by Office Class

2023 Average Office Rent per Square Foot

  • San Jose Class A & A+ Office Space$58.09
  • San Jose Class B Office Space$39.26
  • San Jose Class C Office Space$32.99
  • California Class A & A+ Office Space$56.30
  • California Class B Office Space$37.45
  • California Class C Office Space$44.91

San Jose, CA Office Asking Rents by Class

Average office rent in San Jose rested at $45.99 per square foot in 2023. As would be expected, office rent price showed some variation from one asset class to another. As such, the asking rent for class A office space in San Jose averaged $58.09 per square foot. Across all submarkets, class B office space recorded an average asking rent of $39.26 per square foot. Meanwhile, assets encompassing class C office space saw asking rents of $32.99 per square foot, on average. Comparably, statewide California average office rents by class in 2023 were: $56.30 per square foot for class A office space; $37.45 per square foot for class B office space; $44.91 per square foot for class C office space.

2023 Office Vacancy Rates in San Jose

Submarket Asking Rents Vacancy Rates
Cupertino $65.47 7.70%
San Jose - CBD $54.71 29.24%
San Jose - Alviso $54.46 29.53%
San Jose - West Valley $47.12 6.96%
Santa Clara - South $40.82 9.14%
San Jose - North $39.80 23.04%
San Jose - North Central $32.99 5.19%
San Jose - South $31.90 10.18%
San Jose - South Central $31.81 5.86%
San Jose - East $29.89 1.22%
San Jose - Berryessa $27.56 7.79%
Data provided by Commercial Edge
Submarket differences in factors such as property mix, degree of accessibility, and availability of amenities influence not only variation in office rent price, but also in vacancy rates. The overall office vacancy rate on the San Jose market was 19.92% in 2023. Looking at the market stats on a more granular level, data shows that the lowest office vacancy rate in San Jose was 1.22% in the San Jose - East submarket, while the highest office vacancy in the market was 29.53%, recorded in San Jose - Alviso.

Office Spaces for Rent in California

San Jose Office Sale Price per SF

  • $278.912023 Avg. Price per SF
  • -17.22%Y-o-Y Avg. PpSF Change
  • $190M2023 Office Sales Volume
  • 62023 Number of Transactions

San Jose, CA Sale Price per SF Trend

  • San Jose Avg. Sale Price per SF in 2023$278.91
  • California Avg. Sale Price per SF in 2023$256.51
San Jose office space cost in 2023 marked a -17.22% change compared to the previous year. The sale price for office space in San Jose averaged $278.91 per square foot in 2023, across all market subdivisions and asset classes. Conversely, the statewide California average office sale price during the same time period was $256.51 per square foot.

2023 Office Sales Volume

  • San Jose, CA Total Office Sales Volume in 2023 $190M
  • San Jose, CA Total Number of Office Sales Closed in 2023 6
A total of 6 deals closed on the San Jose office market in 2023, adding up to a yearly sales volume of $190M. Notably, the largest transaction on the market saw 211-281 River Oaks Pkwy change hands for $50,000,000 on 7/11/2023.
Data provided by Commercial Edge

Coworking Spaces in California

2023 Office Construction in San Jose, CA

  • San Jose, CA Total SF completed in 2023 2,094,887
  • San Jose, CA Total SF under construction in 2024 261,468

During 2023, 2,094,887 square feet of new office space were delivered across the market. At the close of 2023, the San Jose office inventory included 5 buildings equal to or larger than 25,000 square feet, which comprised 2,094,887 square feet of office space. Looking forward, development activity throughout 2024 is estimated to add 261,468 square feet of office space to the market, before year-end.

Largest Office Properties Recently Completed in San Jose
Office building Address SF Completed
One Santana West One Santana West, 95128 375,000 2022
1030 Leigh Ave 1030 Leigh Avenue, 95126 7,200 2021
Century Towers 1729 North 1st Street, 95112 330,178 2016
The Offices at Santana Row - 500 Santana Row 500 Santana Row, 95128 235,000 2016
Santana Row 300 Santana Row, 95128 80,000 2009
RiverPark Tower II 300 Park Ave, 95112 321,618 2008
Forest Medical Arts 125 Ciro Ave, 95128 39,975 2007
6060 Hellyer Avenue 6060 Hellyer Avenue, 95138 6,093 2006
Sobrato Office Tower 488 South Almaden Blvd, 95110 378,961 2003
Santana Row 377 Santana Row, 95128 707,029 2002

Worth noting among recent office completions on the San Jose market is One Santana West, which is currently the largest new office development in the city, at 375,000 square feet.

Data provided by Commercial Edge

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This market stats report is based on analysis of city-level data that includes office properties equal to or larger than 25,000 square feet in size. Averages were calculated based on values dated January 1st 2023 through December 31st 2023. Construction pipeline data represented herein is valid as of April 2024. The information on this page was compiled using data provided by CommercialEdge, a market intelligence solution which offers comprehensive real market knowledge on all San Jose commercial properties sized 25,000 square feet or larger.

While every effort was made to ensure the accuracy of the data presented in this report, the information is provided “as is” and neither CommercialCafe nor CommercialEdge can guarantee that the information provided is complete.