Large office project proposed in north San Jose’s hot market

Development is expansion of work in progress

SAN JOSE >> A legendary development firm has proposed big new office buildings in north San Jose, one of several Silicon Valley regions undergoing a leasing, buying and purchasing boom.

Peery Arrillaga, a realty firm whose principals are John Arrillaga and Richard Peery, has proposed construction of three new large office buildings, along with a parking garage, on East Brokaw Road near Bering Street.

The new buildings would be an expansion of what the company has built so far on the development property, which is bordered by Highway 101, North First Street, East Brokaw Road and Bering Drive, and also includes the site of the former and now bulldozed Bay 101 casino.

“The original site development permit allowed the demolition of the card room and construction of 10 sevenstory office buildings totaling 2 million square feet,” said Ruth Cueto, a San Jose city planner.

Two of the new buildings would each be eight stories, and the third would be four stories, according to the planning documents. “This is an amendment to that permit,” Cueto said.

Peery Arrillaga has proposed development of 608,000 square feet of buildings, plus the parking structure, in the newest phase of the project, city planning documents show. As is their custom, neither Peery nor Arrillaga commented for this article.

“It’s a very good indicator that there is strength in the market in the city of San Jose, and especially north San Jose,” said Erik Schoennauer, principal executive with Schoennauer Co., a land use and planning consultancy.

At present, one building totaling 117,000 square feet has been completed on the site.

The newest phase of the development would include three office buildings. Two would total 241,000 square feet, and the third would total 126,000 square feet.

At full build out of 2 million square feet, the development could accommodate 10,000 workers. The existing office building, plus the three new proposed buildings, could potentially be enough space for 3,600 office workers.

“Peery Arrillaga has a site plan that references future development and a future submittal,” Cueto said.

A number of tech companies have been expanding their operations in Silicon Valley and the East Bay lately.

Among those that are adding space in huge chunks: Cupertino-based Apple, Mountain View-based

KENNETH RODRIGUES & PARTNERS RENDERING Office buildings, parking areas and another structure at 60 E. Brokaw Road, are part of a north San Jose office complex being developed by Peery Arrillaga.