SAN JOSE (KCBS) — Cruise the main drag near Santana Row, Silicon Valley’s popular shopping and residential strip in San Jose, and you might forget about the sour economy. The upscale development is packed – nearly every office and retail space is occupied.

“We’re seeing more confidence and more spending,” declared Jan Sweetnam of Federal Realty Investment Trust, the company managing Santana Row, which also includes restaurants and residential units. “It certainly feels good.”

Not only is Santana Row thriving – it’s expanding now, too.

“We’re building another 212 units right next door, I mean Silicon Valley allows us to do this,” Sweetnam explained.

Those 212 new units will be upscale, luxury residential suites – with rental prices estimated to be as high as $6,000 per month. Construction is expected to be complete in mid 2013.

KCBS’ Matt Bigler Reports:

Is there any doubt that the units will be snapped up? Not if you consider the endorsements from current tenants.

“It’s a great place to live,” enthused two-year Santana Row resident Molly Mullen.

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