Silicon Valley Tech Park, San Jose
About this Property
The Silicon Valley Tech Park in San Jose, California, is a premier commercial real estate asset purpose-built for the innovation economy. Spanning 180,000 square feet across three interconnected buildings on a 22-acre campus, this property sits at the epicentre of the world's most valuable technology ecosystem — home to Apple, Google, Meta, Nvidia, and thousands of high-growth startups. The campus features open-plan collaborative workspaces, private laboratory suites, a 500-seat conference centre, rooftop solar panels providing 40% of energy needs, and a full-service amenity hub including restaurants, a fitness centre, and a childcare facility. The property is currently 94% occupied by a mix of Series B–D technology companies, a leading biotech firm, and a government-backed AI research institute. MARKET DYNAMICS Silicon Valley office vacancy rates, while elevated post-pandemic, have stabilised and are recovering as AI-driven companies aggressively expand their footprints. The tech park's focus on laboratory and R&D space — which commands a 35% premium over standard office space and has vacancy rates below 5% — positions it in the most resilient segment of the commercial real estate market. INVESTMENT STRUCTURE Investors hold equity in the property through a Delaware-registered REIT structure, providing tax-efficient income distribution. Rental income from tenants is distributed quarterly after deducting property management fees (6%), insurance, and a capital expenditure reserve (3%). Lease terms average 5.2 years with annual rent escalations of 3–4%. PROJECTED RETURNS Current net operating income: $3.8M per annum. Projected cap rate at acquisition: 5.2%. With projected rent growth and occupancy improvements, the 5-year IRR is estimated at 14–18%, including terminal value from an anticipated sale to an institutional REIT buyer. RISK PROFILE Low-to-Moderate. Diversified tenant base, long lease terms, and the irreplaceable location in the world's premier technology hub provide strong downside protection.
- Quarterly Dividends
- Asset-backed Security
- Professional Management