SAN JOSE — Downtown San Jose has produced an upswing in economic activity, with jobs and foot traffic showing improvement, according to a report produced by the San Jose Economic Development and Cultural Affairs Office.
The report covered the 12 months that ended in June.
“Over the past year, downtown San Jose continued to make visible progress, even amid broader economic headwinds,” stated the city government report. “Downtown San Jose is experiencing a period of transition and reinvestment as it continues to recover from the impacts of the COVID-19 pandemic.”
In the 2025 fiscal year, downtown San Jose accommodated an estimated 27,400 jobs. That was up 8.3% from the 25,300 in the 2024 fiscal year that ended in June 2024, the city report stated.
In mid-2019, prior to business shutdowns that began in March 2020 due to the pandemic, downtown had about 43,000 jobs, the city agency reported. Totals nosedived to 33,700 in mid-2023.
About 23,000 people were living downtown during the 2025 fiscal year, according to the Economic Development Office. That was unchanged from the prior year, but higher than in mid-2023.
In mid-2019, about 22,000 people were living downtown, a prior report by the city economic development office determined. That number jumped to 24,000 in mid-2021, then to 23,000 in mid-2022 and 21,400 by mid-2023.
The report also determined that downtown foot traffic rose 7% over a one-year period that ended in April.
It defined downtown San Jose as an area bounded by Google’s Downtown West footprint near the SAP Center, Diridon train station and the Coleman Market Center site on the west; Julian Street on the north; Fourth Street on the east; and Interstate 280 on the south.
Downtown office vacancy levels are high and worsened slightly in the most recent reporting period. The vacancy rate was 29% in the 2025 fiscal year, up from 28% the year before, according to the city study.
Office rental rates are improving. Average asking office rents were $4.37 a square foot as of mid-2025, up 21.7% from $3.59 a square foot in mid-2024.
The report also took note of how San Jose State University has become entwined with downtown, to the benefit of both.
The university in August 2024 opened Spartan Village on the Paseo, a 13-story student housing complex that sprouted within a former hotel tower. That facility contains 700 beds.
The upswing for multiple key sectors in downtown San Jose has arrived ahead of the South Bay playing host to three key sporting events: the Super Bowl, several matches of the FIFA World Cup, and some of the games for the NCAA men’s college basketball tournament.
“Downtown San Jose is drawing new large-scale events, welcoming new business openings, and benefiting from public space improvements that create a more welcoming and vibrant environment,” the city report stated. “These trends reflect the downtown’s evolving identity as a vibrant, mixed-use district poised for growth.”