Nearly a decade ago, PW Market left the anchor space within the Via Valiente Shopping Center and the space has remained vacant since, to our collective frustration. Earlier this year, Matt met with the real estate broker who manages the property to learn more. He shared with us that while they have received initial interest from a number of potential tenants over the years, they’ve been unable to secure a lease (industry standard for this type of space would be a 5-10 year lease, in part because the space needs about $500,000 worth of investment to be customer-ready). The broker claims that the rent they are asking for is fair and comparable to other similar locations in San Jose.
In the broker’s opinion, the fundamental challenge is that the surrounding customer base is relatively small and already has a number of other retail options within a short drive. A grocer, for example, has to compete with Safeway, Lucky's, and Whole Foods (all within 10 minutes), not to mention food delivery services. When the shopping center was first built the City's General Plan assumed future residential growth in the South Almaden Valley Urban Reserve (SAVUR). That has not happened and there are no plans for future development in that area, which means that population growth near the center is unlikely to increase. While a grocer may be difficult to attract, the broker thought that a gym or fitness center could be a good fit.
Our office is actively looking for potential tenants and we want to thank long-time Almaden resident, Robert Braunstein, for devoting significant time to supporting this effort. We'd welcome your referrals and any other ideas you might have for the space. Please send them to [email protected].