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News and thoughts from our staff

 
VTA approves design contract for Coyote Valley wildlife crossing

VTA approves design contract for Coyote Valley wildlife crossing

By Brittney Sherman

Planning is underway for a new wildlife crossing in Coyote Valley, with construction potentially beginning around 2028.

In January, the Santa Clara Valley Transportation Authority approved an $8.7 million design contract for the U.S. 101/Monterey Road Wildlife Crossings Project. The proposed crossing, located near Fisher Creek and Monterey Road, would allow wildlife to safely cross Highway 101, Monterey Road, and the Union Pacific rail line.

Coyote Valley serves as an important habitat corridor for species such as deer, coyotes, bobcats, and mountain lions. Increased traffic has led to more wildlife-vehicle collisions, creating safety risks for both animals and motorists.

The project, long supported by conservation groups including the Peninsula Open Space Trust, aims to improve roadway safety while preserving ecological connectivity in southern Santa Clara County.

Read more HERE!

 
US office leasing up in past year

US office leasing up in past year

By Brittney Sherman

Office leasing activity improved in 2025, with tenants signing an estimated 410 million square feet nationwide, a modest rebound from 2024’s 15-year low. Leasing gained momentum over the course of the year, closing with three consecutive quarters above 100 million square feet for the first time since 2022, signaling gradual recovery from post-pandemic weakness.

Despite the increase in total volume and a high number of transactions, the recovery remains uneven. Roughly 30,000 lease deals were signed in 2025—above pre-pandemic norms—but average lease sizes continued to shrink, at about 3,500 square feet, well below late-2010s levels. This combination of higher deal counts and smaller spaces reflects ongoing caution among office tenants and a fragmented recovery across markets.

Read more HERE!

 
Morgan Hill community helps budget shortfall with new app

Morgan Hill community helps budget shortfall with new app

By Brittney Sherman

The City of Morgan Hill has introduced an online budget simulator to involve residents in addressing a $4 million structural deficit. Launched in late November, the tool allows users to test different combinations of service changes and revenue adjustments to balance the General Fund budget.

In its first two weeks, the simulator drew more than 400 users. City finance staff say the tool is designed to educate the public about how the city’s budget works, highlight the limited share of local tax revenue the city receives, and gather community input on potential solutions. The simulator presents a range of options—from significant service reductions to more moderate changes paired with tax increases—each with explanations of their potential impacts.

Participate HERE!

Read more HERE!

 
Gateway Arch Approved by City Council

Gateway Arch Approved by City Council

By Brittney Sherman

On December 17, the Morgan Hill City Council unanimously approved plans for a $500,000 gateway arch over Monterey Road at Main Avenue, advancing a long-discussed downtown landmark. The Downtown Morgan Hill Improvement District will fund $250,000 of the project, with the remainder to be raised through private donations and community fundraising. Construction is targeted for completion by November 2026 in conjunction with the city’s 120th anniversary.

The arch will feature a laser-cut El Toro mountain silhouette with illuminated “Downtown Morgan Hill” lettering, supported by stone-filled columns and designed to maintain truck clearance and driver visibility. While the project prompted discussion about spending priorities amid budget constraints, the city does not control how the improvement district allocates its funds.

Read more HERE!

 
Morgan Hill Economic Conditions

Morgan Hill Economic Conditions

By Brittney Sherman

Commercial Real Estate and Business Conditions

Morgan Hill’s commercial real estate market has entered a stabilization phase following two years of higher interest rates that reshaped financing conditions, particularly for speculative projects. Over the past five years, the city has delivered nearly one million square feet of new light industrial space, significantly expanding local inventory. Recent deliveries and tenant turnover have increased availability, creating opportunities for businesses seeking modern facilities that were previously difficult to secure.

Outside of industrial development, new commercial construction has been more measured, with higher borrowing and construction costs influencing project timing and scale. Retail and service-oriented properties continue to perform best in areas with strong foot traffic. Restaurants and personal services remain active, though operators are navigating higher labor and operating costs. Across sectors, businesses are operating more cautiously, prioritizing efficiency, lease renewals, and targeted reinvestment over rapid expansion. Consumer spending has moderated, particularly for discretionary goods, while demand for services and dining has held up more consistently.

What This Means for Morgan Hill

Overall, Morgan Hill’s economy is adjusting rather than contracting. The addition of nearly one million square feet of new light industrial space has shifted the market from scarcity to increased choice, giving businesses greater flexibility while increasing the importance of pricing, building quality, and absorption. Higher operating and financing costs have led firms to be more deliberate, focusing on efficiency, right-sizing, and targeted reinvestment. With growth moderating and financing conditions improving modestly, pointing to a more balanced and sustainable economic environment.

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