The world’s most sophisticated office developers are betting billions of dollars on the future of San Francisco job growth.
In a burst of development unmatched since the 1980s, over the next three years the city will give birth to no fewer than six new office towers, all but one of which is being built on a speculative basis. The first out of the ground was Tishman Speyer’s Foundry Square III, a SoMa structure to be delivered at year’s end. The building doesn’t have a tenant yet, but rumors are that Google is interested. Tishman Speyer may also start this year on a second deal, the 450,000-square-foot 222 Second St.
That building will be followed by Boston Properties 535 Mission St. and Kilroy Realty Corp.’s 350 Mission, which has been leased to Salesforce. Jay Paul Corp. is pushing to start 181 Fremont St. by the fall and a joint venture between Boston Properties and Hines is completing construction documents for the Transbay Tower, which will be the biggest tower ever in San Francisco.
Taken together the projects represent nearly 3.5 million square feet of new space. Tenants are now in the market for 5.4 million square feet, with 1.1 million feet of that space representing positive absorption, according to CBRE.
Read more: San Francisco Business Times New office towers to crowd San Francisco skyline