I took a tour of the fancy, nearly-complete "88" condos at 3rd & San Fernando Streets yesterday, and the sales agent mentioned that the the SJ Business Journal had just published an article claiming that Safeway would be opening an experimental "urban store" in the building. She then smiled and said that the SJBJ has better sources than she does.
The "88" has 32,000 sq.ft. available for retail tenants, with none announced so far. The "urban store" designation implies a smaller than normal floor area, and some degree of specialization, so it could wind up being more like the nearby Zanotto's than like a standard Safeway. Still, it would be a great thing for the heart of town if it did happen.
Does anyone have further info?