Digital Realty Trust: San Jose data center site to be transformed by big developer

Dec 17, 2021 | Posted by MadalineDunn

Digital Realty has announced that it has sold its San Jose data center to developer Hines. Documents filed on December 15 with the Santa Clara County Recorder's Office outline that Hines paid just under $60 million ($59.6 million) for the complex. The building spans 179,800 sqft; meanwhile, the data center is 121,200 square feet. The complex also has retail space of 41,900 sqft and office spaces totaling 9,700 sqft.

Speaking to BizJournal, Scott Knies, the San Jose Downtown Association executive director, said: "The location has always been too prime to remain predominantly a data center. I am looking forward to its next incarnation under Hines ownership."

Although the precise details around what the site will be used for are yet to be confirmed, speaking to, Nick Goddard, senior vice president with Colliers, a commercial real estate firm, said he thought it is likely Hines will repurpose the property rather than "bulldoze." "It could become a great creative office space. The building has good bones. Creative offices could work there. The building has high windows and lots of glass," he said.

Meanwhile, Erik Hayden, Urban Catalyst founder and managing partner, commented: "Having this property in the hands of a national reputable development company like Hines bodes very well for really creating an amazing pedestrian and user experience for the Paseo. Hines is a great company, and I have a strong suspicion they're going to do very well."

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