By Meghan Hall
There is no doubt now of the important impact the life sciences sector has had on commercial real estate. As demand for such properties continues to grow, Denver-based REIT Healthpeak Properties is looking to capitalize on changing market conditions with plans to expand its 427,283 square foot Sierra Point campus in Brisbane, Calif. The firm recently filed an application with the City of Brisbane to build two additional towers on the site.
Currently, Healthpeak owns both existing buildings at 2000 Sierra Point Parkway and 8000 Marina Boulevard. Plans indicate that Healthpeak seeks to add 853,220 square feet in two towers that would rise to nine stories and 14 stories, respectively. If approved and completed, the property would total 1.28 million square feet of space.
The campus–designed by DES Architects and Engineers–would also include 8.3 acres of open space. The space would include outdoor work areas, food and dining and more, according to project documents. Additionally, a larger parking structure that would accommodate more than 3,700 cars is planned.
An additional 30,000 square feet, for a restaurant and bar, is also in the works, as is a promenade and publicly accessible amenities.
The project is not the only one that Healthpeak is working on in the area. Just next door, the organization is building The Shore at Sierra Point. The $600 million, five-building campus will total 620,000 square feet upon completion. Phase I was recently completed, and the second and third phases are expected to be finished by early 2022. Phase II and Phase III are 88 percent and 100 percent leased, respectively.
A recent investor presentation shows that as of mid-year, Healthpeak had $1.3 billion worth of active developments in its pipeline. Other projects include The Boardwalk at Torrey Pines, which is expected to cost $173 million to build, and is 100 percent leased, Callan Ridge, also in Torrey Pines, which will cost $137 million to construct and is 100 percent leased. In the Bay Area, the company is working to move forward with NExus on Grand. The $159 million development is scheduled for completion in the second quarter of 2023.
Over the past year and a half, life sciences growth has been driven by increased consumer demand for human health and therapeutics-related products, according to recent analysis by JLL. Additionally, becaused medical advancements have lengthened lifespans, there is now a greater demand for consistent and specialized healthcare. The San Francisco Bay Area, Boston and San Diego–three markets where Healthpeak is extremely active–are ranked as the top life sciences markets in the country. All three provide easy access to large talent pools, funding and a healthy commercial real estate market that are critical for the industry to flourish.
As of this writing, Healthpeak had not yet returned The Registry’s request for comment.