Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SAN JOSE-San Jose City Hall has told the development team of the Coyote Valley Research Park that they must raise about $100 million for improvements at Coyote Valley before it will provide any of the necessary infrastructure to develop the office campus.

The Coyote Valley Research Park developers, which include Cisco Systems and Divco West Properties, must come up with funds that will pay for a new highway overpass and a flood control pond at a bare minimum. Divco has expressed interest in charging forward with its plans and raising the funds.

The development has been postponed indefinitely from its planned start date in late October, partly due to Cisco’s decision to cancel plans for a 6.6-million-sf headquarters in San Jose. Cisco has not specified whether it will build a smaller campus or not.

Without Cisco as a tenant and neighboring developer, many property owners fear that the area’s corporate image won’t be as high-profile as they’d hoped. Many companies has been relying on Cisco’s presence in Coyote Valley, including some firms that purchased or leased space to be closer to Cisco for sales purposes.

City officials are concerned about the nature of the development and how that might change if Cisco backs out completely. The developer can sell parcels as small as 10 acres under zoning, or can sell to another major company. Without a major tenant, problems with several developers may arise.

Already, the project has been on hold for nearly a year. Provided that Divco can come up with the $100 million for infrastructure improvements, development may begin next spring.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.