Santa Clara mega development pivots to industrial space as office demand wanes
• A huge mixed-use project in Santa Clara called Related Santa Clara is replacing 4 million sq ft of planned office space with light industrial and manufacturing spaces due to weak demand.
• The 4 million sq ft of offices will instead be shifted to the City Center section of Related Santa Clara, where buildings will become taller to accommodate it.
• The changes come as office vacancy rates have risen significantly in Santa Clara and the Bay Area more broadly.
• Related started construction in summer 2023 on the first housing component - 2 towers with ~684 residential units to be completed by end of 2023.
• In total, Related Santa Clara could have up to 9.2 million sq ft across offices, retail, residences, hotels, and industrial space.