Sellers Are Taking 70% Losses in Downtown San Jose Right Now

Downtown San Jose is facing a severe commercial and residential real estate divergence as prime office towers sell at discounts topping 70% and vacancy rates sit above 30%. While Silicon Valley’s broader tech economy continues to expand in neighboring suburbs like Sunnyvale, Google’s stalled 80-acre Downtown West megaproject has left vast tracts of urban land idle, heavily impacting foot traffic and local small businesses. This comprehensive market breakdown examines why developers are pivoting away from office high-rises, how bulk condo liquidations and 7% mortgage rates are driving down downtown property values while suburban single-family home prices reach new peaks, and what this split market means for local buyers, renters, and property owners. Disclaimer: This content is produced strictly for educational, informational, and news analysis purposes and does not constitute financial, investment, legal, or real estate advice. Always consult a licensed real estate broker, certified appraiser, or qualified financial advisor regarding specific property transactions and market decisions.