Population
1,037,000
Growth (5Y)
+1.8%
Median Income
$125,000
Metro GDP
$340B
Market Overview
San Jose is the epicenter of Silicon Valley and commands the highest household incomes of any major US metro — making it one of the most attractive NNN markets in the country for tenant sales performance and rent support. Cap rates of 4.0–5.5% reflect the premium investors pay for access to a consumer base where the average household income exceeds $125,000. NNN assets here — particularly Starbucks, McDonald's, and Chase Bank — benefit from per-location sales volumes that substantially exceed their national averages.
Key Highlights
Silicon Valley's capital city — highest median household income of any large US metro
Tech sector concentration creates consumer spending patterns that dwarf all other US markets
Extremely low NNN supply relative to population density — chronic undersupply supports pricing
Apple, Google, and Cisco campus expansions drive sustained commercial real estate demand
How the Market Has Evolved (2020–2025)
San Jose's NNN market from 2020 to 2025 was shaped by the remote work revolution and the subsequent return-to-office. The 2020–2021 period saw tech workers disperse to Austin, Miami, and other markets, briefly softening retail demand. But by 2022–2023, major tech employers mandated returns, and San Jose's consumer economy rebounded sharply. The AI boom of 2023–2025 added a new layer of demand: Nvidia, OpenAI adjacents, and AI-focused startups expanded headcount rapidly, filling office space and driving foot traffic to nearby retail. NNN cap rates that briefly widened to 4.75–5.75% in 2022–2023 compressed back to 4.0–5.5% by 2025. Investors who purchased during the 2022 interest rate spike saw significant mark-to-market appreciation.
Why Invest in San Jose
- 1Highest household income in the US — unmatched consumer spending power supports all NNN tenants
- 2Silicon Valley AI expansion creating new waves of high-income employment
- 3Near-zero new NNN supply in this land-constrained market permanently protects valuations
- 4Exceptional resale liquidity — institutional buyers from across the globe compete for Silicon Valley assets
Recent NNN Activity
"2025 NNN activity has been led by Starbucks and Chase Bank assets near major tech campuses in Santa Clara, Sunnyvale, and Mountain View. McDonald's drive-thru locations in east San Jose traded at 4.5–5.0%. The South Bay NNN market remains one of the most supply-constrained in the nation."
NNN Snapshot
Cap Rate Range
4% - 5.5%
Price Range
$2.8M - $8.5M
Avg Lease Term
15 Years
Unemployment Rate
3.5%
Active NNN Tenants
StarbucksMcDonald'sChick-fil-ACVS PharmacyChase Bank7-ElevenWalgreens
Major Employers
AppleGoogleCisco SystemsAdobeInteleBayNvidia
Find NNN Properties in San Jose
Our advisors have exclusive, off-market NNN inventory in the San Jose market right now. Contact us to see what's available before it hits the public market.