The data reveals needs and opportunities
in Gilroy. For example, when it comes to
the industrial/R&D market, leasable space
as of a year ago was 5,174,955 square
feet. Average vacancy over the past 4
years has dropped by roughly 10 percent.
Lease rates have more than doubled since
2013, rising to $11/square foot. The aver-
age annual construction over the past
decade was 50,000 square feet.
In a separate analysis, EPS identified
“opportunity and corridor sites” within
the City and highlighted possibilities
for highest-and-best-use development.
The study noted current commercial real
estate trends including urban mixed-use,
innovation center, and experiential retail
development. The analysis included eight
opportunity sites located throughout
the City, including two that are City-
owned; and seven corridor sites located
along three main corridors identified by
the City as the Monterey Street, First
Street, and Tenth Street Corridors.
Three main corridors: Monterey, First and Tenth Streets.
For example, Opportunity Site #5
– Rancho San Ysidro is a vacant
60-acre parcel bordered by Highway
152 and Camino Arroyo and zoned C3
(commercial/general industrial). The EPS
assessment recommended consideration
as a horizontal mixed-use Employment
Center, an “innovation center” develop-
ment. Development constraints listed: the
City’s Ag Mitigation Policy, the need for
signifi cant on- and off-site infrastructure
improvements and mitigation, and
historically commercial zoning east of
Highway 101.
14
GILROY • MORGAN HILL • SAN MARTIN
april/may 2019
gmhtoday.com