Tesla has quietly taken control of a roughly 108,000-square-foot industrial building on San Jose’s Junction Avenue, turning it into a sizable storage, delivery and service hub for its electric vehicles. City planning filings show the site is being set up to hold inventory, run repairs and handle customer pickups for cars ordered online.
As first reported by Silicon Valley Business Journal, the company secured the approximately 108,000-square-foot site as it grows its industrial footprint across the South Bay.
What city files show
City planning records identify the property as 2256 Junction Avenue, a 13.68-acre parcel with an existing roughly 107,719-square-foot building. The documents describe a conversion that would add an indoor showroom, customer waiting area, parts storage, a repair and cleaning center, indoor EV inventory space and a vehicle pickup area for online orders.
The planning commission materials and action minutes also spell out a buildout that would accommodate up to 807 vehicle inventory stalls and 221 employee, customer and visitor parking stalls, details that appear in the city’s filings and environmental addendum. According to the City of San José, staff recommended a conditional use permit to allow the conversion.
Part of a broader Bay Area push
The San Jose move slots into a larger push by Tesla to add space in the Bay Area. Recent reports show the company has leased sizable research and advanced manufacturing properties in Fremont, including a 267,099-square-foot Milmont Industrial campus and an earlier 108,000-square-foot research and development facility, moves observers tie to expanded R&D and robotics work. This activity has been documented by the regional real estate outlet Bisnow.
What it means locally
The scale of the planned inventory yards and pickup zone points to steady truck and service traffic, plus added demand for on-site charging and electrical upgrades. City staff will use the CEQA addendum and subsequent building-permit review to set conditions around circulation, loading and environmental controls before any conversion work begins.
Tesla already operates a showroom in Santana Row for walk-in retail and demos, a location that is listed on the company’s store pages and would remain separate from the Junction Avenue operation, which is geared toward inventory, delivery and service rather than front-of-house retail. According to Tesla, the company maintains a Santana Row showroom in San Jose.
City filings and local reporting indicate the shift into Junction Avenue is underway, but routine municipal approvals and building permits still have to be processed before the site operates at full capacity. We will be keeping an eye on permit records and public notices as the conversion moves ahead.
