Mastering Highest Offers in San Jose CRE

Why knowing how to navigate HABO matters more than ever for brokers and agents in Silicon Valley's tight market? 

If you’ve been brokering deals in San Jose over the last year, you already know this—Highest and Best Offers (HABO) aren’t just a listing tactic anymore. They’ve become the new norm. 

In a city where commercial inventory barely gets the chance to go stale and tech spillover continues to drive demand, the race to secure top-tier properties—retail, office, and even mixed-use—is intense. And in that race, agents who know how to position, negotiate, and close in HABO scenarios have a real edge. 

But “highest” doesn’t always mean “best.” And that’s where many offers fall flat. 

Let’s unpack what really works in a HABO-heavy landscape like San Jose—and how real estate listing websites and real estate brokerage websites can help brokers stay sharp. 

The HABO Landscape in San Jose—It’s Not Slowing Down 

Let’s put this into perspective: 

According to Colliers Q1 2025 Commercial Market Report, San Jose’s Class A office vacancy rate hovered at 14.8%—better than most metro tech corridors. Meanwhile, industrial and warehouse spaces are leasing at record speed, with triple net (NNN) lease rates up by 5.2% YoY. 

This kind of activity isn’t isolated. Venture-backed startups and satellite teams from Big Tech are still pouring into Santa Clara County. Pair that with investors hunting for high-yield assets and you’ve got bidding wars not just in residential deals, but in CRE too. 

So, HABO? It’s not just a tactic. It’s a filtering mechanism—designed to cut through noise and get serious buyers on the table, fast. 

What “Highest and Best” Really Means in CRE 

It’s easy to assume HABO is all about who throws the most money at a deal. But seasoned brokers know better. 

In commercial real estate, the best offer is often the cleanest offer—the one that checks every box on timelines, contingencies, financing, and tenant transition plans. 

Here’s what “best” often includes: 

The money matters, but it’s the terms that get deals across the finish line—especially when sellers have options and time is tight. 

For Agents: How to Position Clients to Win in HABO Situations 

If you're an agent repping a buyer, your role is more strategic than ever. Here’s how to improve your client’s odds when you know a HABO call is coming: 

1. Set expectations early 

Tell your client: "If you're not ready to move fast and strong, we’re already behind." That clarity upfront avoids lowball offers that waste everyone’s time. 

2. Pre-screen with intent 

Use real estate listing websites not just to browse but to monitor days-on-market trends, broker remarks, and past listing patterns. Sites like LoopNet and Crexi often hint at urgency or flexibility if you read between the lines. 

3. Ask the listing agent the right questions 

Are there lease assumptions involved? 

What’s the seller’s motivation—cash flow, quick exit, 1031? 

 Are they emotionally tied to the building (e.g., family-owned)? 

This insight helps tailor the offer beyond just numbers. 

4. Offer more than price 

Sometimes, your client being flexible with closing schedules or offering seller credits for vacating tenants can tip the scales. 

For Listing Agents: How to Run a HABO Without Losing Good Buyers 

If you’re on the sell side, HABO can bring in great offers—but also backfire if you’re not careful. 

A few principles: 

1. Clarity is king