In this Issue:

Welcome to the Downtown San Jose Office Opportunities e-letter! This e-letter contains information from the San Jose Redevelopment Agency and the City of San Jose's Office of Economic Development.

Questions or comments? Contact Start-up@ci.sj.ca.us

Office Space for Start-Ups
Teja & PDF Solutions Talk Downtown
Financial Incentives - The Zone
Downtown San Jose Lifestyle

Key Links

Software Companies Talk About Being In Downtown San Jose

Teja Technologies
David Stepner, CEO of Teja Technologies (located at 2 W, Santa Clara), believes Downtown San Jose is a great place for Teja and others in the software development industry. He says, "San Jose shouldn't be overlooked as a place to start and grow a software company. Downtown has many advantages. Our location is an attribute in employee recruitment. We are a short walking distance from numerous restaurants, parking is not the issue many content, and we enjoy the urban feel of downtown. Also, Downtown is really the only place in Silicon Valley where Bay Area public transit comes together. Our employees live all over the Bay Area (including the East Bay), and regardless of the direction, Downtown is a reasonable, if not great, commute."

PDF Solutions
Tom Cobourn, Vice President at PDF Solutions: "When PDF's 8 employees moved to the Bay Area in 1996, we were interested in a location that would provide an urban atmosphere and Class A office space. It would also need to serve PDF long term. Since then, PDF has grown to be the leading provider of process-design integration technologies to enhance IC manufacturability, and employs over 250 people worldwide. PDF's headquarters in Downtown San Jose, 333 W. San Carlos Street, has all along provided the desired working environment for PDF to serve its customers."

Office Space that Fits Start-Up Needs
Statistics show that software has been the fastest growing sector in Silicon Valley. The average size of these companies is 17 employees. Finding office space in an urban environment can be challenging for small companies because office developers/managers are frequently hesitant to divide up floor plates.

Fortunately, San Jose is the kind of place where an entrepreneurial spirit is rewarded. Below is a partial list of downtown office buildings for which there are opportunities to divide up or creatively share floor space to accommodate start-ups, or other small companies.

Address Class Type Square Feet Avail. Broker Contact
225 W Santa Clara A 1,793-6,619 Lucinda Lawson, 282-3800
60 S Market A 1,878-5,539

Mike Grado,
453-7409

333 W San Carlos A 1,501-5,929 Mike Grado,
453-7409
50 W San Fernando A 5,938 David Buccholz, 282-3843
2 N First B 200-8,000 Jim Robbins,
938-3921**
109 Park Center Plaza B 800 Susan Gregory,
282-3940
40 S Market B 1,775 Dale Green,
441-9051
55 S Market B 1,231-7,419 Reed Payne,
819-3934
95 S Market B 870-2,245 Egan Kingston,
971-2700
39-41 Post C 730 Egan Kingston,
971-2700
84 W Santa Clara C 575-3,000 Egan Kingston,
971-2700

**Software Business Cluster -- a software incubator and incredible opportunity to share office space, expertise, and network!

In the Zone: Financial Incentives for Locating Downtown
Businesses located in central San Jose are in the Enterprise Zone, and can qualify for thousands of dollars in special tax credits and other incentives from the California Franchise Tax Board. Enterprise Zone incentives include employment tax credits and cost savings on the purchase of computer equipment. San Jose has the only Enterprise Zone in Silicon Valley. For more details see www.sjeconomy.com or contact the City of San Jose Office of Economic Development at
277-5880.

Downtown San Jose Lifestyle
Downtown San Jose is transforming and exciting urban environment for working, playing, living, and starting companies! If you haven't visited recently, then you're overdue for day of exploration and an evening of fun and relaxation. Some facts to get you ready:

Downtown: Software Campus
-Headquarters for Adobe Systems, Agile, Dejima, and more.
-Resources abound for collaboration and networking, including the Software Business Cluster, Software Development Forum, San Jose State University, Entrepreneur Center, Environmental Business Cluster, and International Business Cluster.
-A campus like no other, Downtown San Jose has great restaurants, parks, an independent movie theater, museums, a variety of housing, exercise gyms, evening public concerts, and is easily accessible by public transit and automobile.

Downtown: Quality Entertainment
-9 museums & galleries, including the San Jose Museum of Art and the Tech Museum of Innovation
-7 professional performance theaters, including the Repertory Theatre & Opera San Jose (soon to inhabit the rehabilitated Fox Theater).
-3 comedy clubs, including the Improv Comedy Club
-4 arts/independent film screens at the Camera Cinemas
-155 dining opportunities, including French gourmet, steak houses, Indian, British pub grub, Asian fusion, Italian, Mexican, Korean, seafood, Chinese, Spanish tapas, and mroe.
-Nearly 4,000 free evening and weekend parking spaces, over 21,000 spaces total

Downtown: Expanded Housing
And once you're ready to move downtown, you'll find there is a wide diversity of available housing, whether you prefer renting a loft in a historic building, or a townhouse in a new development. There are over 2,600 residential units downtown, over 2,000 under construction, and 3,200 in development. The City of San Jose is dedicated to increasing the supply of attractive and diverse housing. In fact, the Redevelopment Agency consistently dedicates 24-34% of its annual budget to affordable housing, above the state requirement of 20%.

Downtown: Public Transit Hub
Downtown San Jose is the hub for public transit in the South Bay. Caltrain, ACE, Amtrak, light rail, buses, the San Jose International Airport, and future BART converge in Downtown San Jose. Additionally, Downtown is accessible from Highways 280, 87, and 101. (Not to mention that driving to Downtown is "reverse commute" for those living on the peninsula!)

Many Downtown employees even walk to work from nearby historic neighborhoods, new developments, and residences "just down the street"! Short commutes pay off in quality of life and productivity for your employees!

Recent retail/restaurant/entertainment openings:
Arcadia (Marriott Hotel): The restaurant features twists on American "comfort" dishes (such as chicken fried steak made with Kobe beef).

Zoe (corner of 1st & San Salvador, in SoFA): Downtown San Jose's newest hotspot, brought to you by the owners of Agenda Restaurant, Bar & Annex. Zoe's is restaurant and nightclub.

Touchstone Climbing (Paseo de San Antonio, between 1st & 2nd Streets): Bouldering (rock climbing), yoga, and pilates. This Bay Area company also operates Iron Works in Berkeley.

Coming soon: P.F. Chang's China Bistro, McCormick & Schmick Seafood Restaurant, Melting Pot, Artist & Craftsman (art supply store),
& more!

The Marriott Hotel opened in April 2003. The tower provides a spectacular view of San Jose.

San Jose State University
Did you know...
SJSU is the #1 provider of engineers to Silicon Valley? Or that its Computer Engineering Department ranks #2, nationally, among public universities offering B.A. and M.A. degrees? SJSU is located in Downtown San Jose; an easy walk for the student-intern! Amazingly, some Silicon Valley start-ups have yet to consider SJSU as a resource for employees, expert advice, and test marketing.

Mark your calendar for the largest free jazz festival in the world - August 7-10th - San Jose
www.sanjosejazz.org

About Downtown San Jose... San Jose is described in the Zagat Survey 2002, as "The epicenter of Silicon Valley". With almost one million people, 300 days of sunshine a year, and a city-wide average household income of over $95,000, San Jose has "come into it's own as a living, working, shopping and entertainment mecca".-- Nation's Restaurant News

Key Links:
Software Business Cluster

Software Development Forum
SJSU Engineering Department
Entrepreneur Center
Chamber of Commerce

SV Manufacturing Group
Office of Economic Dev't

SJ Redevelopment Agency
Downtown Association
Industrial Area Site Finder

Next issue:
- San Jose's developing economic strategy: City staff reach out to business execs for feedback, ideas

- Spotlight on San Jose Business Incubators, such as the Software Business Cluster which has graduated 50 start-ups and is currently working with 20 early stage software companies..

To be added or removed from this mailing list, please send an email to Start-up@ci.sj.ca.us

July 2003