Santana Row in San Jose is profitable open air

SAN JOSE – Santana Row in San Jose is doing very well despite the economic and logistical challenges posed by the coronavirus and government-ordered restrictions.

The mixed-use center is attracting strong patronage to its restaurants, making headway on a dramatic new office building, and adding a number of new dealers.

The encouraging assessment of how Santana Row was dealing with the coronavirus came recently from a conference call held by the Federal Realty Investment Trust, the main owner and developer of the mixed-use complex.

Construction is underway on a modern office building, which will begin development on a large tech campus called Santana West near the corner of Winchester Boulevard and Olsen Drive, Federal Realty chief executive officer Don Wood said during a conference call earlier this year Month.

“The 375,000 square meter office building in Santana West is in an earlier construction phase and will not be ready for occupancy until 2022,” said Wood during the conference call for analysts and investors on November 6th.

In recent years Santana Row has grown into a village where people can live, work and play.

Shops. Restaurants, office buildings, homes, hotel facilities, entertainment centers, and a movie theater are part of the mix on Santana Row.

A large leasing contract with the technology company Splunk strengthened the quality seal of the complex as an office center. The Splunk leases gave Federal Realty so much encouragement that the developer opened a speculative office building across Winchester Boulevard from the main center of Santana Row.

“Newly launched lifestyle and digitally native tenants are targeting our premier open air, mixed-use and lifestyle locations,” Wood told analysts. Wood added, “Santana Row is attracting Nike Live, Vuori, Arcteryx, Faherty, Ugg and the new restaurant concept Chika.”

– Chika is a gourmet Mexican roast that recently opened that offers a variety of flame roasted chicken dishes.

– Nike Live is slated to open in 2021. In 2018, Nike Retail was named “Retail Concept of the Year” on the Retail Dive website. Nike Live tries to serve local customers and changes inventory in the store every two weeks.

– UGG, famous for its Australian-made sheepskin boots, recently opened on Santana Row.

– Vuori is a retailer providing high performance apparel for people in California interested in yoga, surfing, sports, music, and the arts. Vuori plans to open in 2021.

– Founded by two brothers born and raised in a New Jersey beach town, Faherty is a family-run clothing store for men and women that opens on November 2nd.

– Originally from western Canada, Arc’teryx offers high-performance outerwear, apparel and equipment for an outdoor experience.

Federal Realty executives point to their restaurant tenants as key success stories.

“Production from our restaurants has been ridiculously high,” said Wood.

Federal Realty believes it can turn Santana Row’s numerous outdoor areas into a winning bet, especially with persistent restrictions on indoor dining.

“On Santana Row, the numbers are more than 100% of the location,” Wood said during the first few months of state restrictions on indoor dining and shopping. He added, “We’ve been sitting outside so much and expanding their capacity.”

Wood warned that the onset of winter and more rainstorms mean Santana Row and other federal realty centers will face additional outdoor dining challenges.

“Has it worked so far? For sure. But the real test will come in the next few months, ”said Wood.

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