T
he recent sale of a 59,000-square-foot commercial complex in Santa Clara has provided a stark reminder of the shifting landscape in Silicon Valley's real estate market. The property, once home to the Institute for Business & Technology, was sold by Mosaic Equities and Fortune Realty to Nanez Enterprises for $16 million, a nearly 20% discount from its original price seven years ago. This sale is likely linked to the institute's relocation to San Jose, where it now operates out of a facility at 91 East Tasman Drive.

    The Santa Clara property, built in the early 1970s and remodeled in 1990, boasts a prime location just a five-minute walk from Nvidia's headquarters and several data centers. Despite its proximity to cutting-edge tech companies, the institute focuses on more traditional sectors, offering certificates for careers such as electrician, medical assistant, and automotive technician.

    The sale price of $16 million translates to approximately $271 per square foot, placing it in the middle range of recent deals in Silicon Valley. For comparison, a pair of Mountain View office buildings sold for $26 million ($294 per square foot) in November, while a Palo Alto building traded for $23 million ($126 per square foot). On the high end, Sand Hill Commons in Menlo Park fetched $222 million ($1,600 per square foot) in October.