Choosing the right shopping center for your retail store in San Jose is a crucial decision that can impact your sales, visibility, and overall success. From the upscale appeal of Westfield Valley Fair and Santana Row to the high-traffic hubs like Oakridge and Eastridge Center, each mall offers unique advantages in terms of foot traffic, competition, and leasing costs.
In this guide, we break down San Jose’s top malls, what to expect when leasing, and key factors to consider when selecting the best location for your store.
Westfield Valley Fair (San Jose/Santa Clara)
This is a super-regional upscale mall and one of the busiest in Southern California. It’s actually one of the largest malls in the U.S., with over 2.2 million sq ft of retail space and 270+ stores.
Valley Fair draws huge foot traffic, which unlock many other malls has exceeded pre-pandemic levels in 2023. The mall features high-end and mainstream retailers – anchor department stores include Macy’s (two locations), Nordstrom, and Bloomingdale’s.
You’ll find luxury brands (Gucci, Louis Vuitton), tech stores (Apple), fast fashion (Zara, Uniqlo), and everything in between. For a new retailer, Valley Fair offers exposure to a large volume of shoppers, but competition is intense – your store will be next to well-known brands.
Lease considerations
Valley Fair’s rental rates are among the highest in the area due to its prime status. While exact rents are negotiated privately, the average retail rent in San Jose is about $36.5 per sq ft/year (approximately $3/sq ft/month), a prime location like Valley Fair can command significantly more – possibly on the order of $60–$100+ per sq ft/year for in-line stores (depending on size and location in the mall).
Additionally, leases in such malls often include common area maintenance (CAM) fees and possibly a percentage rent clause (where you pay a percentage of sales above a certain threshold).
Nearby competition
Directly across the street is Santana Row (see below), which also draws shoppers – together they create a major retail hub. Notably, Valley Fair’s success (66% sales growth vs 2019, per news reports) means high sales potential if you have the right product mix.
But be prepared for high upfront costs (build-out must meet Westfield’s design criteria) and a rigorous lease approval process (Westfield will vet your business plan, financials, etc. for tenancy).
Santana Row
An open-air luxury shopping, dining, and entertainment center, located adjacent to Valley Fair (across Stevens Creek Blvd). While not a traditional enclosed mall, it’s one of the top retail destinations in San Jose with very heavy foot traffic, especially on weekends and evenings.
Santana Row has a high-end customer base and a “lifestyle” atmosphere (outdoor cafes, live music events, etc.). There are no department store anchors; instead the anchors are experiential: a luxury hotel (Hotel Valencia), a movie theater, and several upscale restaurants.
Notable tenants include luxury and boutique retailers like Gucci, Kate Spade, Tesla showroom, as well as popular dining spots. For a retailer, Santana Row offers a prestigious address and constant flow of shoppers, tourists, and locals enjoying the ambiance.
Lease considerations
Rents here are also high – often comparable to Valley Fair for similar square footage, due to the upscale nature. The center is known for smaller boutique spaces; some might be ~1,000-2,000 sq ft stores.
Expect leases to be expensive (perhaps in the range of $5–$8+ per sq ft/month, $60–$96/ft²/year, depending on unit and location). The landlord (Federal Realty) often curates the tenant mix, so your concept would need to align with the Santana Row brand.
Competition and foot traffic
Santana Row’s competition is more the general upscale market – the shoppers here might also frequent Stanford Shopping Center or downtown Palo Alto for luxury goods. Within Santana Row, you’d be competing with other boutiques; however, because it’s smaller than a mega-mall, the mix of stores is more complementary than directly competitive.
One advantage is that Santana Row’s foot traffic is not just “shoppers” but also people dining or living on-site (there are apartments/offices), which can benefit a retail store through casual, repeat visitors. Keep in mind, parking at Santana Row can be challenging during peak times (which reflects its popularity).
Overall, if your brand fits a trendy or luxury niche, this location could be ideal despite the cost.
Westfield Oakridge
A large traditional shopping mall located in south San Jose (Blossom Hill Road). Oakridge is a strong performing community mall, serving a broad residential area. Anchors include Macy’s, a two-story Living Spaces furniture store (which took over a former Sears space), and a 99 Ranch Market (Asian supermarket) that opened in 2022.
There is also a Target store across the parking lot (not officially part of the mall, but a draw to the center). Oakridge features over 150 stores, including many popular national brands (e.g., Old Navy, H&M, electronics, etc.) and a food court, as well as an AMC movie theater.
Recent trends show foot traffic growth – after adding 99 Ranch, visits climbed ~10% in mid-2022 compared to pre-2019 levels. This indicates Oakridge continues to attract shoppers.
Lease and cost considerations
Rents at Oakridge are generally lower than Valley Fair, reflecting its more mid-market positioning, but they are still significant. Rough estimates put inline store rents perhaps in the range of $30–$60 per sq ft/year (lower end for larger spaces or less desirable corridors, higher for prime spots near center court).
CAM charges will apply as with any mall. Oakridge may offer a bit more flexibility or slightly shorter lease terms for local businesses compared to ultra-premium centers, but expect multi-year commitments and a thorough lease application.
Competition
The retail mix at Oakridge means you’ll likely be near strong mid-tier retailers; for example, a clothing boutique would be competing with H&M, Forever 21, or department store offerings. However, because Oakridge serves a more everyday shopping need for local residents, a well-positioned store can build a regular customer base.
The presence of the grocery anchor (99 Ranch) brings in additional foot traffic (especially from the Asian community) that might then walk the mall. Overall, Oakridge is ideal if your target market is families and everyday shoppers; you benefit from anchors like Macy’s and the constant draw of the supermarket and movie theater.
Eastridge Center
A large mall in East San Jose (Tully Road). Eastridge has long been a community shopping hub for the East Side and has gone through revitalization efforts in recent years. Current anchors include Macy’s, JCPenney, AMC 15 Theaters, a 24 Hour Fitness gym, and Round 1 Bowling & Amusement (an entertainment center).
Eastridge houses around 150 stores, with a mix of national chains and local shops. It also frequently hosts community events (farmers markets, cultural events) which help drive traffic.
Foot traffic & demographics
Eastridge’s foot traffic is solid, particularly on weekends and around event days, though not as high as Valley Fair. It primarily serves the local San Jose population (which is diverse and heavily family-oriented in that area).
Lease considerations
Eastridge’s lease rates are generally the most affordable among the big San Jose malls, reflecting its location and demographic. A small retail space here might be in the ballpark of $20–$40 per sq ft/year.
The mall management (Pacific Retail) has been open to more local and unique businesses to fill spaces, so this could be a good entry point if budget is a concern. That said, you will still have CAM charges and a formal lease process.
Competition
Within Eastridge, you’ll compete with mid-level retail options; for example, there are popular shoe stores, apparel retailers like Hollister or Tilly’s, and a variety of jewelers and specialty shops. Given the presence of entertainment anchors (movie theater, bowling, fitness), some visitors come for those activities and then browse retail – capturing those impulse shoppers can be key.
There are fewer luxury brands here; it’s more of a value-oriented shopping venue. If your store offers affordable goods, Eastridge might align well.
Keep in mind the surrounding area doesn’t have as many high-income shoppers as west San Jose, but volume can be made up in loyal local customers.
Other Notable Centers:
In addition to the above, Westgate Center (in West San Jose) is a busy open-air shopping center with major tenants like Target, Nike Factory Store, and Burlington – high traffic, but more big-box oriented. The Plant Shopping Center (off Curtner Ave) is another high-traffic power center (Target, Home Depot, etc.), good for visibility but more auto-centric than foot-circulation like a mall.
While not in San Jose city, Great Mall of the Bay Area (Milpitas) is a huge outlet mall drawing many San Jose shoppers; it’s worth noting if outlet retail was in your strategy – it has 200+ stores and outlets and significant foot traffic, though it’s a different model (value-driven outlet shopping). For a typical full-price retail store, the four locations detailed above are the prime spots in San Jose proper to consider.
Lease Negotiation Tips:
Mall leases often require careful negotiation. Be aware of common terms such as tenant improvements (TI) – sometimes landlords offer an allowance, but in prime malls like Valley Fair, small tenants may not get much TI money.
Also, look at clauses about operating hours (you’ll be required to open during all mall hours), co-tenancy, and percentage rent. Expect a multi-year commitment (often 5+ years in top malls).
Factor in not just base rent but also additional costs: CAM (common area maintenance) fees, marketing fund contributions, utilities (some malls charge separately), and insurance requirements (you’ll need liability insurance naming the landlord).
Each location has its pros and cons; weigh the prestige and traffic against the cost, and consider where your target customer is likely to be shopping.