SAN JOSE — A tech campus in North San Jose was bought for less than its prior value in a deal that serves as a reminder that the Bay Area office market remains in a weaker position despite a surge in leasing activity by the technology industry.
The Rio Tech campus at the southwest corner of North First Street and Rio Robles was purchased for $164.3 million, according to documents filed on April 28 with the Santa Clara County Recorder’s Office.
Real estate firm BentallGreenOak acted through an affiliate to buy the seven-building campus, whose addresses include 3545 North First St. and 30 through 150 Rio Robles, county property files show.
The purchase price was 13.3% below its $189.5 million assessed value, Santa Clara County public documents show. Assessed values are just one metric to gauge whether a property is becoming more expensive or cheaper.
The slump in value suggests the property might suffer a decline in its assessed valuation, which has implications for local government agencies and the services they provide.
If real estate values fall, the erosion could imperil a crucial revenue stream from property taxes for cities, counties, regional agencies, and school districts.
The deal has emerged at a time when tech companies have helped propel a surge in office leasing in the South Bay, even though office vacancy levels remain high in the downtown districts of the Bay Area’s three largest cities.