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The State of the Retail Market in San Jose: Trends and Challenges

State of San Jose Retail - what we're seeing

The retail market in San Jose, California has experienced significant changes in recent years, with the rise of e-commerce and changing consumer behaviors. In this blog post, we'll explore the current state of the retail market in San Jose, including the trends and challenges facing retailers and commercial real estate agents.

A large shift to e-commerce:

Like in many other cities, e-commerce has had a major impact on the retail market in San Jose. With the rise of online shopping, traditional brick-and-mortar retailers are facing increasing competition and have been forced to adapt to changing consumer behaviors.

Annecdotally, we've seen the next generation more reliant on the process of online appointments, buying, selling and communicating. Retail restaurants that do not have a strong precense in their ability to adapt to this will be left in the dust.

Additionally, restaurants who don't have jaw dropping, fun, or a "insta" precense do not do well. It is critical to have a fun an inviting menu for all to see.

Focusing on the experience:

In response to the rise of e-commerce, many retailers in San Jose are focusing on creating unique and immersive experiences for customers. This includes offering in-store events, interactive displays, and personalized services to differentiate themselves from online competitors.

We've seen a huge uptick in the amount of "insta" spots where people can take photos, engage with others and share their experience.


While experience is important, convenience remains a top priority for many shoppers. Retailers in San Jose are responding by offering services such as same-day delivery, curbside pickup, and online ordering to make shopping as convenient as possible.

While we are still in a market where retail locations can dictate the process, the consumers however feel different. A larger group of consumers feel as if they don't want to make reservations, it is more about at will kind of thinking; I'll try it out when I feel like it, and if I have to wait, it's not worth it.

The challenges for Commercial Real Estate Agents:

As retailers adapt to changing consumer behaviors, commercial real estate agents in San Jose are facing challenges in finding new tenants to occupy retail spaces. This is especially true for large anchor stores and malls, which have been impacted by the rise of e-commerce.

Finding tenants who fit this "new" wave of retail users has been challenging, but at least there are more of them!

The retail market in San Jose is facing significant challenges, but there are also opportunities for retailers and commercial real estate agents who are willing to adapt to changing consumer behaviors. By focusing on experience, convenience, and innovation, retailers can differentiate themselves from online competitors and attract new customers. For commercial real estate agents, finding new tenants to occupy retail spaces will require creativity and a deep understanding of the changing retail landscape.

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