SAN JOSE — Ross Dress for Less has struck a deal to open a new San Jose store at a site where a drug and pharmacy store had once operated, in a hopeful sign for the Bay Area’s wobbly real estate sector.
The off-price retailing titan has leased space at 1030 South White Road in east San Jose, according to documents filed this month with the Santa Clara County Recorder’s Office.
The site Ross Stores leased is within White Road Plaza, a retail and dining center. Sean O’Carroll and Ron Cruz, brokers with The Econic Co., a commercial real estate firm, are attempting to find tenants for the retail complex. O’Carroll and Cruz declined to comment about the situation.
Ross Stores leased 23,700 square feet at the commercial complex, which is at the corner of South White Road and Story Road in San Jose, property documents show.
The details of the leasing agreement that were filed with the County Recorder’s Office showed that the rental deal was completed on Dec. 11, 2024, when the property owner signed the lease.
The new Ross Dress for Less store will occupy a space where Rite Aide once operated a drug and pharmacy retail site. This news organization emailed Ross Stores to request a comment or context regarding the transaction.
Rite Aide filed for bankruptcy in 2023 and since then has revealed plans to close at least 800 stores nationwide. Pennsylvania-based Rite Aide is also cutting jobs in the Bay Area.
Workers were seen removing debris from inside the empty store this week.
Ross signed a 10-year lease, the public documents show. The retailer also has an option to extend the lease by four five-year periods, or potentially another 20 years. The starting date for the lease wasn’t immediately clear from the county records.
An affiliate controlled by Doerken Properties, also known as DPI Retail, owns the White Road Plaza retail center where Ross has leased space. The shopping center totals 153,500 square feet, according to DPI.
The deal by Ross Stores is a reminder that despite some difficulties in the retail sector, some merchants continue to seek ways to expand. Ross appears to be one of those.
“Ross is very aggressive right now in expanding and looking for new locations,” said David Taxin, a partner with Meacham/Oppenheimer, a commercial real estate firm. “They are looking for buildings with rents that are below market or fair value. Ross won’t move into a brand-new retail center with high rents.”
Dublin-based Ross Stores posted a profit of $2.11 billion on revenue of $21.24 billion for the 12 months that ended in early November. Both numbers were an improvement over the retailer’s profits of $1.88 billion on revenue of $20.38 billion for the one-year period that ended in early February 2024, according to the Finance Charts website.
These robust results are one reason property owners might be eager to seal deals with Ross Stores.
“Landlords are happy to have a Ross, because the company has extremely high credit and a great balance sheet,” Taxin said.
More opportunities could emerge for retailers hunting for space due to store closures by Dollar Tree and 99 Cents Only.
Hobby Lobby recently opened a south San Jose store in Almaden Plaza. Hobby Lobby took over a big space that once was occupied by Bed Bath & Beyond.
Sports Basement has leased an adjacent big space in the same San Jose shopping center. Sports Basement will occupy spaces where Buy Buy Baby once operated and where Barnes and Noble has decided to shut its doors.
“A bunch of big box spaces are available and getting leased,” Taxin said. “Ross sees a lot of opportunities with some of the low-cost stores and some drug stores closing locations.”