SAN JOSE — An independent grocery store is planning to lease space on the ground floor of two housing towers in downtown San Jose’s San Pedro Square neighborhood, a deal that is set to bring new food choices and help spur economic activity in the city’s urban core.
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The store will lease 12,000 square feet of ground-floor space at 188 West St. James St., according to sources with knowledge of the transaction.
Nick Goddard, a senior vice president with Colliers, a commercial real estate firm, has been seeking retail and restaurant tenants for the ground floor spaces of the two-tower residential hub.
The store’s name wasn’t immediately available.
The market, described by a source as an independent boutique grocery store, is slated to occupy space on the side of the housing towers that faces San Pedro Square Market, the sources said.
The residential tower complex consists of a 22-floor eastern tower with 337 units and a 20-floor western tower with 303 units.
The principal owner of the towers is attempting to sell condos in the western tower.
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Separately, San Jose Unified School District is eyeing a purchase of the entire eastern tower as workforce housing for staff and teachers.
Goddard said the market could open sometime in 2027, once the street-level shell space is prepared.
The market will have fresh food, sandwiches, a salad bar, a hot bar, burritos, and other items, according to the sources.
Downtown San Jose offers minimal grocery store choices, which means demand could be significant for the new market.
Whole Foods Market on The Alameda opened in 2014 on the downtown’s western edge, and Sakura Market opened in June at 184 South Market St.
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