California City Scoop: Construction Starts in San Jose
Before COVID-19 outbreak, the value of new contracts was expected to fall 28%
Sharp drops had been forecast for non-residential and residential sectors; gains were expected for non-building.
City Grill
Angela Wu
Director
Kohn Pedersen Fox Associates PC (KPF)
In San Jose, Calif., developers are continuing projects without much hesitation despite the ongoing pandemic, after an initial slowdown, “likely because their timelines to opening were multiple years, promising a much different economic environment for introduction to market,” Wu says.
“What we’ve found is that COVID hasn’t resulted in major changes in strategy, but rather the exacerbation and acceleration of trends we were already experiencing in design and construction,” says Wu, who notes demand for work-live-play, sustainability and healthy space drives design of large-scale, mixed-use master plans. Flexibility and adaptability are factors, too, as the hybrid laboratory and office building or campus becomes more prominent with prospective technology or life sciences tenants.
Meanwhile, California’s need for housing continues. “We’re seeing very strong demand for mid-market especially, with emphasis on more robust amenities, outdoor spaces and interior planning that includes flexible work-live environments with plenty of natural daylight,” Wu says.
