San Francisco Market Update: Construction Activity Slows Down in Q3
Two office buildings were completed in September, both part of the same Menlo Park development.
In September, the San Francisco-Peninsula market had 6.4 million square feet of office space under construction, or 4.1 percent of total stock, CommercialEdge data shows. Month-over-month, the pipeline contracted by 7.9 percent, while year-over-year total office space under construction decreased by 12.1 percent.
In the Bay Area—comprising the East and South Bay—office space under construction totaled 5.1 million square feet in September, representing 2.5 percent of total stock and an increase of 6.8 percent month-over month.
A total of 610,000 square feet of office space came online in the third quarter across San Francisco, less than half of what was delivered in the previous quarter (over 1.5 million square feet). In September, two office buildings were completed. Some 1.7 million square feet are slated for delivery in the last quarter of the year. It is likely that some projects will continue to see delays, as San Francisco continues its economic recovery.
In Menlo Park, Presidio Bay Ventures wrapped up construction work on The Offices at Springline North and South—a two-building office development totaling 267,464 square feet, located at 1300 – 1302 El Camino Real. Presidio Bay took over the project last year and renamed it to Springline—a live-work-play development which includes residential and retail components. Four other office buildings are under construction in Menlo Park, totaling just over 213,000 square feet.
Office construction starts in the San Francisco-Peninsula market amounted to two properties in September—totaling 358,400 square feet. In Brisbane, Phase 3 Real Estate Partners started work on the second office/R&D building (comprising 174,000 square feet) of Genesis Marina. The three-building life sciences campus is slated for a 2023 completion and will offer 570,000 square feet of Class A laboratory and office space.
In Burlingame, a joint venture of Sares-Regis Group and Dostart Development broke ground at 220 Park Road. The venture received approvals from the city in February for the redevelopment of a 1.3-acre vacant post office. Plans call for 168,000 square feet of office space and 17,000 square feet of retail.
CommercialEdge covers 8M+ property records in the United States. View the latest CommercialEdge national monthly office report here.
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