SAN JOSE — Vespaio, a prominent and new mixed-use development in downtown San Jose, has landed a tech design firm as its first office tenant, offering a hopeful sign for the local commercial property market in a time of coronavirus-linked uncertainties.
Surfaceink, a pioneer in product design and engineering for consumer electronics and tech firms, has leased a large chunk of office space in the Vespaio complex on Stockton Avenue just around the corner from the Diridon train station.
“We’re really excited that we leased this second-floor space to Surfaceink,” said Mark Jones, a senior project manager with Hudson Cos., a veteran and savvy real estate firm that developed Vespaio. “Surfaceink is a really cool company.”
Surfaceink leased about 7,000 square feet, which is roughly half of the second-floor space in Vespaio, according to Jones.
The rental deal by Surfaceink offers a welcome counterpoint to the dismal events ushered in by the coronavirus, including business shutdowns and merchant closures.
Vespaio is a seven-story development consisting of162 luxury apartments, along with commercial spaces on the ground, second, and third floors, according to Jones.
The ground-floor space totals 12,200 square feet, the second-floor space totals 15,400 square feet, and the third-floor space totals about 5,000 square feet.
Surfaceink’s second-floor offices feature tall windows and high ceilings with exposed equipment to create a modern industrial look.
“It’s a great creative space,” Jones said. “The second-floor is really cool.”
Surfaceink’s lease is a reminder that downtown San Jose remains an attractive location for office tenants.
Plus, commercial tenants such as retailers and restaurants could head to Vespaio. Talks are underway with one or more tenants for the commercial spaces, including on the ground floor.
Prior to the outbreak of the coronavirus, Vespaio had attracted considerable interest from retail and restaurant tenants, as well as office tenants. But the uncertainties triggered by the coronavirus chased away tenants until matters improve.
“We have a letter of intent for a tenant,” Jones said.
Vespaio also is making steady progress in leases for the apartments in the mixed-use development, Jones said.
The complex also features a deck that looks out on Stockton Avenue and the nearby The Alameda, with views to the west, south, and north.
“We just had two move-ins,” Jones said. “We are about 28% leased for the apartments.”