search

The Real Deal Logo

Trending

Pinnacle Bank buys back Fort Worth office tower for $12 per sf Pinnacle Bank buys back Fort Worth office tower for $12 per sf Neil Shekhter’s WS Communities looks to sell a third of its LA apartmentsNeil Shekhter’s WS Communities looks to sell a third of its LA apartments“Multifamily is in the crosshairs”: Execs talk distress, opportunities at Milken conference“Multifamily is in the crosshairs”: Execs talk distress, opportunities at Milken conference“You don’t know what the f-ck you are getting”: The new leasing paradigm“You don’t know what the f-ck you are getting”: The new leasing paradigm
Development
San Francisco

BXP pushes pause button on Platform 16 development

Million-square-foot project is across the street from Google’s halted Downtown West

BXP's Robert Pester with rendering of Platform 16
BXP's Robert Pester with rendering of Platform 16 (BXP, Getty)

Boston-based BXP, formerly known as Boston Properties, is pausing its 1-million-square-foot office project in San Jose, according to documents filed with the Securities & Exchange Commission. 

Platform 16 is one of the largest office projects in San Jose’s pipeline, located near Diridon Station. Plans call for a three-building campus occupying a full city block along Guadalupe River Park. The company currently has a 55 percent stake in the project and expects to be a 50 percent partner in the future development of the site, according to the filings. 

BXP is currently developing the first phase of the project and will pause construction after the completion of the underground parking garage and building foundation elements over the next several months. The company decided to pause further development due to market conditions, and it’s committed to completing Platform 16 as the market improves, BXP said in an email to TRD. The company also reiterated its support for San Jose.

Sign Up for the undefined Newsletter

Downtown San Jose currently has the highest office availability rate in Silicon Valley at 28 percent, according to a second-quarter report by brokerage CBRE. The market has 13 million square feet of office space, which means about 3.6 million square feet is available. The average asking rent is $4.34, which is below hotter markets anchored by the big tech companies that see monthly rents above $5 per square foot.

The news of Platform 16’s halt comes on the heels of Bob Pester, BXP’s lead in San Francisco, announcing his retirement in early 2024 after a 25 year tenure. He will be replaced by Rod Diehl, who currently serves as senior vice president of leasing in San Francisco. 

Platform 16 is adjacent to another large development that has been halted. Google’s planned 8 million square feet transit village dubbed Downton West is halted due to market conditions. Along with offices, the tech giant planned to develop thousands of homes, as well as shops and restaurants. 

Read more

Companies and People
BXPGoogle
Tags
Development