SAN JOSE – Widespread woes in the tech sector, such as job cuts, have hampered efforts to land a major tenant for a new San Jose office building near Santana Row, real estate executives said Thursday.
Despite the current short-term lease dispute for the One Santana West complex, the long-term fate of the new office building, executives at Federal Realty Investment Trust, the main owner and developer of Santana Row and the adjacent office project, told Wall Street analysts Thursday.
A number of issues in the technology sector have combined to hamper interest in a Santana West project just down the street from Santana Row, Federal Realty CEO Donald Wood said during a conference call.
“There’s no question that the technology sector has cooled down over the last 90 days in terms of stock prices and workers are back in the office,” he told Santana West. Analysts.
The office building totals 375,000 square feet and is located along Winchester Boulevard.
“It was frustrating, yes,” Wood said, as he has no shortage of completed deals for Santana West.
Still, the project’s developer and leasing agents are pulling out all the stops to get the project filled, according to brokers from Newmark Commercial Real Estate, Federal Realty Chief Operating Officer Jeff Burks told analysts. .
“We’re not going to take a break on the lease,” Santana West said. “We are working as hard as we can to rent the building as quickly as we can.”
Despite the short-term problems, the future is bright for the eye-catching office building, Federal Realty officials assert.
Wood said during the call: “To put this in perspective, one Santana West is a new and modern office building near one of the most successful and convenient destinations in the technology capital of the country.”
