$25M R&D Facility Tenant Improvement in San Jose Requires 5 Low Voltage Systems

A $25 million tenant improvement in San Jose is converting a 302,843-square-foot Prologis warehouse into a cutting-edge research and development facility, requiring five low voltage systems and creating an estimated $1.15 million opportunity for contractors in the Silicon Valley market.

Project Overview

One of Silicon Valley's largest recent industrial-to-R&D conversions is underway at 5853 Rue Ferrari in San Jose, California. The $25 million tenant improvement project is transforming a massive Prologis-owned tilt-up warehouse — completed in 2024 on a 17.38-acre site — into a modern research and development facility capable of supporting advanced laboratory and technology operations.

The scope of work extends well beyond cosmetic renovation. According to permit records filed with the City of San Jose, the conversion includes the addition of backup generators, transformers, evaporative cooling chillers, and a step-down power transition yard to support research and laboratory uses. The facility boasts access to 99 megawatts of power, positioning it as a prime location for energy-intensive R&D tenants in sectors such as artificial intelligence, semiconductor testing, or advanced manufacturing.

With a current tax-assessed value of $132 million, the underlying real estate represents one of the most significant industrial assets in South San Jose. The tenant improvement permit signals that a major technology or life sciences tenant is preparing to occupy the facility, bringing substantial low voltage infrastructure requirements along with it.

Project	Tenant Improvement - 5853 Rue Ferrari
Location	5853 Rue Ferrari, San Jose, CA 95138
Total Value	$25 million
Building Size	302,843 SF on 17.38 acres
Project Type	Industrial-to-R&D Conversion
Status	Active
LV Score	7/10
Source	San Jose Building Permits

Key Players

This project brings together a heavyweight roster of real estate and construction firms. Prologis, the world's largest industrial real estate company, owns the underlying property. DPR Construction — a nationally ranked ENR Top 20 general contractor headquartered in the Bay Area — is leading the tenant improvement buildout. Anna Purvis Architecture handled the building's design.

Role	Company	Details
Owner	Prologis	World's largest industrial REIT. Owns 1.2 billion SF globally. Recently secured a 400MW data center campus on San Jose city-owned land.
General Contractor	DPR Construction	ENR Top 20 contractor. Just opened a new 113,702 SF Silicon Valley HQ and Prefabrication Facility in nearby Santa Clara in February 2026.
Architect	Anna Purvis Architecture	Bay Area architecture firm specializing in commercial and industrial design. Handled the original building design and site planning.

Low Voltage Systems Breakdown

The conversion from warehouse to R&D facility requires five low voltage systems spanning data infrastructure, security, life safety, and collaboration technology. Converting a 302,843 SF open warehouse floor plan into a segmented, secure, and connected research environment demands extensive LV infrastructure that touches every corner of the facility.

System	Category	Scope Description	Complexity
Structured Cabling	Data/Voice	The backbone of the conversion. A 302K SF R&D facility requires dense cabling infrastructure to support labs, offices, server rooms, and testing areas. Expect Cat6A throughout with fiber backbone runs connecting multiple IDFs to a centralized MDF. The 99MW power capacity suggests high-density computing environments that demand robust network infrastructure.	High
Access Control	Security	R&D facilities handling proprietary technology require multi-zone access control with card readers, biometric scanners at sensitive areas, and man-trap configurations for clean rooms or secure labs. Integration with visitor management systems and elevator controls is standard for facilities of this caliber.	High
CCTV / Video Surveillance	Security	Comprehensive IP camera coverage across the 17.38-acre campus including parking areas, loading docks, building perimeter, and interior corridors. R&D environments typically require higher-resolution cameras with analytics capabilities for monitoring restricted zones.	Medium
Audio/Visual	AV	Modern R&D facilities demand extensive AV systems for conference rooms, collaboration spaces, and presentation areas. Expect AV-over-IP distribution, wireless presentation systems, and video conferencing infrastructure throughout the office and lab areas.	Medium
Fire Alarm	Life Safety	The change of occupancy from warehouse to R&D triggers a complete fire alarm system redesign. Laboratory environments require specialized detection including early-warning smoke detection in server rooms, duct detectors for HVAC systems, and integration with suppression systems. NFPA 72 compliance with California amendments applies.	High

Estimated Low Voltage Value

With no database-estimated LV value available, we applied industry benchmarks for commercial office and R&D tenant improvements to calculate the estimated contract value.

Total Project Value	$25,000,000
Estimated LV Percentage	4.0% (Office/Commercial midpoint)
System Count Multiplier	1.15x (5 systems)
Estimated LV Contract Value	$1,150,000

The estimated low voltage contract value for this project is approximately $1.15 million, based on industry benchmarks for commercial R&D tenant improvements with five integrated systems. The actual value could trend higher given the facility's scale — at 302,843 square feet, the sheer volume of cable runs, device counts, and infrastructure points drives material and labor costs well above what the percentage-based estimate might suggest for a typical office buildout.

The structured cabling scope alone, estimated at 20-30% of the LV budget ($230,000-$345,000), represents a significant subcontract opportunity. Access control and CCTV for a campus of this size could collectively account for another $250,000-$350,000. Firms positioned to self-perform multiple systems — particularly cabling combined with security — would be well-positioned to capture a larger share of the LV scope.

Skills and Certifications Required

This project's five LV systems require a workforce with both breadth and depth, particularly given the R&D facility's technical demands and the high expectations that come with a Prologis/DPR project.

System	Key Certifications	Critical Skills
Structured Cabling	BICSI INST2, RCDD (design), Manufacturer (CommScope/Panduit)	Cat6A termination, fiber splicing, Fluke certification testing, pathway planning for 300K+ SF facilities
Access Control	PSP (ASIS), Manufacturer (Genetec/Lenel/HID)	IP networking, door hardware, biometric reader installation, multi-zone programming
CCTV	Manufacturer (Axis/Avigilon/Milestone)	IP camera deployment, PoE networking, VMS configuration, video analytics setup
Audio/Visual	CTS (AVIXA), CTS-I, Manufacturer (Crestron/Extron/QSC)	AV-over-IP, control system programming, conference room integration, display mounting
Fire Alarm	NICET Level II+, California State FA License	NFPA 72, SLC/NAC wiring, lab-specific detection, change-of-occupancy compliance

Entry-level technicians with BICSI Installer 1 certification can contribute to cable pulling, device mounting, and basic terminations across the massive floor plate. Mid-level technicians with BICSI INSTC or NICET Level II will handle system wiring, testing, and commissioning. The project will require at least one RCDD for cabling design oversight and a NICET Level III+ for fire alarm system engineering given the change-of-occupancy complexity.

Contractors should verify their California C-7 (Low Voltage Systems) contractor license is current. California requires a C-7 license for any low voltage installation work, and the state's prevailing wage requirements may apply depending on project funding sources.

Market Signal

This $25 million tenant improvement is a strong indicator of continued demand for R&D-ready industrial space in Silicon Valley. While much of the Bay Area commercial real estate conversation has centered on data centers — Prologis itself recently secured a 400MW data center campus on San Jose city-owned land — this project signals that traditional R&D and laboratory tenants are also actively leasing and building out major facilities.

The fact that DPR Construction is the general contractor adds credibility to the project's scope and complexity. DPR, which just opened its new 113,702 SF Silicon Valley headquarters and prefabrication facility in Santa Clara in February 2026, is selective about the projects it takes on. Their involvement suggests a technically demanding buildout for a sophisticated end user.

For low voltage contractors in the San Jose and greater Bay Area market, this project represents a bellwether. The conversion of warehouse space to R&D facilities creates denser LV requirements than new-build industrial projects, as the existing infrastructure rarely meets the cabling, security, and life safety demands of laboratory and technology tenants. Contractors who have experience with similar conversions — and who hold relationships with DPR's subcontractor network — should be tracking this project closely.

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