DivcoWest Secures 44 KSF Life Science Lease in San Francisco – What is a Ground Lease?
Clinical-stage precision medicine oncology company IDEAYA Biosciences has signed a long-term lease to occupy 44,000 square feet at DivcoWest’s 5000 Shoreline Court in South San Francisco’s Sierra Point life science cluster. CBRE brokered the lease on behalf of the landlord, while JLL represented the tenant.
DivcoWest purchased the 140,000-square-foot Class A office building last year for $164.5 million, CommercialEdge information shows. The same source reveals that the property is also subject to a $124 Deutsche Bank loan set to mature in 2032.
CBRE Vice Chairman Chris Jacobs and Associate Matt Jacobs brokered the lease singing on behalf of DivcoWest, while JLL Senior Managing Director Grant Dettmer and Executive Managing Director Scott represented IDEAYA in the agreement.
A San Francisco vacant space transformed into a life science hub
Upon acquisition, the owner executed a plan to transform the vacant building into a laboratory facility, enhancing building systems and infrastructure to attract life science tenants. Improvements to the base building encompassed upgrading the electrical service to 4000 amps, replacing rooftop mechanical units, as well as installing a 1,200kW emergency generator.
DivcoWest is also implementing the installation of two extra service elevators, a new gym and upgrading the building’s common-space areas to include meeting spaces. The three-story building offers flexible space options ranging from 10,000 to 80,000 square feet.
DivcoWest is currently undertaking the development of 10,000, 13,000, and 20,000-square-foot spec suites, designed to provide lab space, lab support areas, offices, conference rooms and lounges. The suites are slated for occupancy in the first quarter of 2024.
A lab space in the middle of it all
The building at 5000 Shoreline Court is less than 9 miles from downtown San Francisco and some 6 miles from San Francisco International Airport. The San Francisco Bay Trail, a 350-mile network of connected walking trails, bike paths and parks is also close by.
The trail offers pedestrian and cycling access to the Alameda-Oakland-South San Francisco ferry, positioned just across the Oyster Point Channel. The building is also situated within a life science cluster including AstraZeneca, Bristol Myers Squibb and Janssen Pharmaceuticals.
Sublease surge pushes up San Francisco office vacancy
A recent CommercialEdge report reveals that San Francisco has seen continued rate hikes, with prominent corporate tech tenants such as Salesforce and Meta listing their office spaces for sublease as part of downsizing or office cutback strategies.
This surge in sublease offerings has caused the vacancy rate in San Francisco to rise, reaching 19.4 percent in April—an increase of almost 2 percent compared to 12 months prior. Despite facing challenges, San Francisco also maintained its position as the most expensive market in the Western region, commanding an average asking rent of $65.3 per square foot.
The post DivcoWest Secures 44 KSF Life Science Lease in San Francisco appeared first on Commercial Property Executive.
In the simplest form, a ground lease is a long-term net lease (usually 49 years or 99 years) of land including any improvements on the said land. Assets that can be subject to a ground lease include but are not limited to, vacant land, office buildings, and large residential buildings.
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