T
he Santa Clara Valley Transportation Authority (VTA) has agreed to purchase the 17-story Almaden Crossing office tower in Downtown San Jose as its new headquarters. The building, located at 488 South Almaden Boulevard, spans 379,000 square feet and was built in 2002. VTA plans to shift its operations there by 2026.

    The agency will finance the purchase through a $135 million bond measure, which will also cover tenant improvements and any necessary renovations. The agreed-upon price for the building remains undisclosed, but VTA officials believe they can secure a discounted deal due to the current state of the office market.

    The commercial real estate market is experiencing a downturn, with record-high vacancies across the Bay Area. In Silicon Valley, the vacancy rate reached 22% in the third quarter, according to JLL. This trend has led to lower prices for office spaces, making it an attractive time for VTA to acquire its new headquarters.

    If the Almaden Crossing deal falls through, VTA has identified a backup site at 1650-1700 Technology Drive in North San Jose. The agency's director of real estate and transit-oriented development, Jessie O'Malley Solis, noted that this is the lowest pricing she has seen in over 20 years in commercial real estate.