LPC West, Dune Real Estate Secure Approvals for 400K-SF Lab and Office
The developers said they expect project to generate more than $1 billion in economic activity
Planning officials in Burlingame, Calif., have unanimously approved a new Class A office and research & development center, adding to the growing field of life sciences facilities in the San Francisco Bay Area.
The development by LPC West and Dune Real Estate Partners calls for a 13-story building and more than 400,000 square feet of office and lab space for leading employers in science and technology. The Gensler-designed project will rise at 777 Airport Boulevard at the corner of Anza Boulevard on the Burlingame waterfront.
The developers said they expect project to generate more than $1 billion in economic activity, including $189 million in construction-related spending, 2,500 permanent jobs, $19 million in one-time fees to the city and $5.6 million in community benefits, which will bring a public plaza and ground floor café, and over 1 acre of publicly accessible park space.
The San Francisco Bay Area has the second-largest employment bases for life sciences in the nation, drawing from companies in pharmaceutical and medicine manufacturing and scientific research and development services. According to a CBRE (CBRE) third-quarter market report, the Bay Area life sciences market saw a slight deceleration in demand, and vacancy rose 90 basis points from the previous quarter to 6.2 percent. Over the past 10 years, the Bay Area life sciences occupancy has grown by more than 10 million square feet. The amount of Bay Area space occupied by life sciences tenants has grown by more than 10 million square feet in the past decade.
777 Airport Boulevard is the latest in a series of Bay Area investments from LPC West, the West Coast arm of national real estate firm Lincoln Property Company. With its partners, LPC recently acquired a three-property, 228,000-square-foot life sciences portfolio in Fremont, Calif., and announced the groundbreaking of a 197,000-square-foot life sciences development in downtown Seattle. In total, LPC West owns and operates more than 6 million square feet of life sciences facilities on the West Coast.
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