The real estate around that area is surrounded by mixed use zoning. That is one of the biggest factors in pricing before schools. Mixed use being commercial, retail, office, etc.
When pricing homes in our various districts they are divided up by areas. Downtown San Jose is listed as area 9 on our MLS. This includes, Rose Garden, Hatchet Park, Palm Haven, Downtown San Jose, Burbank, and so on. So when homes are valued the agent will have to pull a radius around the home and because some homes are going be directly bordered by a mix use zone it will bring the value down on the residential home zoned for residential use.
What is exciting for our area is the new housing opportunities which combine condos and retail. Developers are turning over neighborhoods, such as Village Square on San Carlos.
If you have a question on a specific property, I'd be happy to discuss it further. Drop me an email or call me.