Tech woes hobble leases for San Jose office building near Santana Row

SAN JOSE — Widening woes in the tech sector such as job cuts have hobbled efforts to land a big tenant for a brand-new San Jose office building next to Santana Row, real estate executives said Thursday.

Despite the current short-term lease challenges for the One Santana West complex, the long-term prospects remain bright for the big new office building, executives with Federal Realty Investment Trust, the principal owner and developer of Santana Row and the adjacent office project, told Wall Street analysts Thursday.

Problems on multiple fronts for the tech sector have coalesced to impede demand for One Santana West, which has sprouted across the street from Santana Row, Donald Wood, chief executive officer for Federal Realty, said during the conference call.

“There is no question that the cooling of the technology sector in the last 90 days both in terms of their stock prices and getting employees back into the office has been a wet blanket on what had been strong leasing momentum” for Santana West, Wood told. analysts.

The office building totals 375,000 square feet and is located along Winchester Boulevard.

“This has been disappointing, yes,” Wood said of the lack of completed deals for Santana West.

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