By Jon Peterson
Tishman Speyer is planning to break ground on a 300,000 square foot spec office building at its Mission Rock project in San Francisco. This property will be known as Building B with an address of 1051 Third Street. The development will be started as a speculative project with no signed tenants as the development gets underway.
Tishman Speyer is a believer in the strength of the life science market in the greater San Francisco Bay Area market. “There is way much more demand than there is supply currently. In South San Francisco, well above 80 percent of the new development projects have been committed by tenants, vacancy in San Francisco is very low, and the Emeryville market remains very strong,” says Carl Shannon, senior managing director/regional director. He works out of the firm’s San Francisco office and is responsible for the company’s efforts in both the San Francisco region and the Pacific Northwest.
The original plan for Building B was to have it be a traditional office asset. Tishman Speyer and site owner San Francisco Giants decided to switch it to life science once the pandemic hit, and the developer could see what the effects COVID-19 had on the overall San Francisco office market.
The developer has engaged with New York-based WORKac as the architect on the new building, and plans are that the building will be ready for occupancy by March 2023. The property has a design that can accommodate either single or multiple tenants. Tishman Speyer will handle its own leasing efforts on the property. It is developing the property along with Breakthrough Properties, an entity that Tishman formed in 2019 in a joint venture with Bellco Capital to develop or invest in life science assets.
Tishman Speyer is making some progress on other parts of the Mission Rock development project. The company has completed the foundations on the first residential building as well as the commercial building that will be the future home of Visa’s Global and North America Headquarters.
Mission Rock is a 28-acre mixed-use project in downtown San Francisco next to the San Francisco Giants’ Oracle Park. Along with the development under way, the project also includes 8 acres of parks and green space. The overall development is planning to have 1,200 residential units, 1.4 million square feet of office, 200,000 square feet of retail and 200,000 square feet for Pier 48, when completed. The development partners on the project includes Tishman Speyer, the Port of San Francisco and the San Francisco Giants baseball club.