For the last 2.5 years, ever since the San Jose City Council voted to give Google exclusive development rights around SAP Center, I've been saying investing in the up-and-coming neighborhoods of Downtown San Jose is a good idea. In that time, the median sales price has appreciated 20% (down from the peak last May, but still an impressive gain). This is 8% higher than the median sales price increase for Santa Clara County over the same time period.
Many companies and investors have followed suit. The San Jose Mercury News ran an article this week that in the last 3 years, $3 Billion has been invested in commercial real estate.
The next step is obviously developing these properties in the coming years. I believe that Downtown San Jose has some of the best price appreciation potential for residential real estate in the Bay Area in the next 10 years. With all these companies moving and expanding downtown, and the demand that will be created by new workers coming to the area, this is definitely an area to focus on for purchasing a property.