{"id":271747,"date":"2026-04-17T01:15:09","date_gmt":"2026-04-17T01:15:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ca\/271747\/"},"modified":"2026-04-17T01:15:09","modified_gmt":"2026-04-17T01:15:09","slug":"san-jose-tech-building-deal-underscores-bay-area-office-market-tumble-3","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ca\/271747\/","title":{"rendered":"San Jose tech building deal underscores Bay Area office market tumble"},"content":{"rendered":"<p>SAN JOSE \u2014 A North San Jose building bought at a discount compared to its prior value underscores the ongoing hard times for the Bay Area office market.<\/p>\n<p>Paceline Investors, acting through an affiliate, purchased an office and research building at 2581 Junction Ave. for $12.2 million, according to documents filed on April 15 with the Santa Clara County Recorder\u2019s Office.<\/p>\n<p>The purchase price was 61.9% below the $32 million an affiliate of Nautilus Global Commercial Real Estate paid in 2018 for the 92,900-square-foot building, county real estate files show. It also was well below the $33 million asking price in 2025.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\" lazyautosizes lazyload\" alt=\"Office and research building at 2581 Junction Ave. in north San Jose, seen on April 16, 2026.(George Avalos\/Bay Area News Group)\" width=\"2500\" data- src=\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/04\/1776388508_514_SJM-L-SJNPROPBUY-02.jpg\" \/>Office and research building at 2581 Junction Ave. in north San Jose, seen on April 16, 2026.\u00a0(George Avalos\/Bay Area News Group)<br \/>\n<img loading=\"lazy\" decoding=\"async\" class=\" lazyautosizes lazyload\" alt=\"Lobby area of a research and office building at 2581 Junction Ave. in north San Jose, seen on April 16, 2026.(George Avalos\/Bay Area News Group)\" width=\"2500\" data- src=\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/04\/1776388509_34_SJM-L-SJNPROPBUY-03.jpg\" \/>Lobby area of a research and office building at 2581 Junction Ave. in north San Jose, seen on April 16, 2026.\u00a0(George Avalos\/Bay Area News Group)<\/p>\n<p>The building is rented to Ensurge Micropower, a battery maker. Ensurge has been seeking to sublease the building, according to real estate sources.<\/p>\n<p><a href=\"https:\/\/www.pacelineinvestors.com\/investments\" rel=\"nofollow noopener\" target=\"_blank\">San Francisco-based Paceline<\/a> is an active Bay Area real estate investor, according to the company\u2019s website.<\/p>\n<p>In 2021, the <a href=\"https:\/\/www.mercurynews.com\/2021\/07\/08\/alameda-tech-hub-shopping-spree-232-million-two-months-real-estate\/\" rel=\"nofollow noopener\" target=\"_blank\">company engaged in a shopping spree<\/a> for office buildings in Alameda, paying $129.8 million for several tech buildings.<\/p>\n<p>The discounted price Paceline paid for the North San Jose building is part of a <a href=\"https:\/\/www.mercurynews.com\/2026\/03\/23\/san-jose-tech-office-economy-loan-build-propery-real-estate-develop\/\" rel=\"nofollow noopener\" target=\"_blank\">pattern of slumping values for office buildings<\/a> in the Bay Area, a slide that has morphed at times into loan defaults and foreclosures.<\/p>\n<p>One bright spot of late: <a href=\"https:\/\/www.mercurynews.com\/2026\/04\/06\/san-jose-tech-economy-office-build-property-openai-apple-google-jobs\/\" rel=\"nofollow noopener\" target=\"_blank\">Tech companies have begun to lease or purchase office space<\/a> at a heightened pace in the South Bay, a trend that has helped to reduce the amount of empty office spaces.<\/p>\n","protected":false},"excerpt":{"rendered":"SAN JOSE \u2014 A North San Jose building bought at a discount compared to its prior value underscores&hellip;\n","protected":false},"author":2,"featured_media":271748,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29],"tags":[5445,389,184,387,7,3010,1335,332,383,181,100,14293,3012,388,88,90,89,198,200,1970],"class_list":{"0":"post-271747","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-san-jose","8":"tag-alameda","9":"tag-alameda-county","10":"tag-bay-area","11":"tag-business","12":"tag-california","13":"tag-commercial-real-estate","14":"tag-development","15":"tag-east-bay","16":"tag-economy","17":"tag-latest-headlines","18":"tag-news","19":"tag-north-san-jose","20":"tag-office-buildings","21":"tag-real-estate","22":"tag-san-jose","23":"tag-san-jose-headlines","24":"tag-san-jose-news","25":"tag-santa-clara-county","26":"tag-south-bay","27":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/271747","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/comments?post=271747"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/271747\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/271748"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=271747"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=271747"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=271747"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}