SAN MATEO — The developers of the Bay Meadows project said Tuesday they will break ground on another office building at the fast-expanding urban village in San Mateo.
The new office building will total 189,000 square feet and is being called Bay Meadows Station 2. It is being built at 2850 S. Delaware St. in San Mateo. Station 2 is the third of five office buildings being planned for Bay Meadows, an office, retail and residential project.
Eventually, 780,000 square feet of offices will be built at Bay Meadows, which is deemed to be a transit-oriented development. The project also includes 1,000 residential units, 18 acres of open space and 40,000 square feet of street front retail along Delaware Street. Stockbridge Capital is the principal owner of Bay Meadows and Wilson Meany is the developer.
“Our urban village is satisfying a great need in the region: a vibrant place to live, work and enjoy life,” said Janice Thacher, a partner with Wilson Meany.
A timetable for construction hasn’t been set yet, although Webcor, the construction company for the new offices, has been told to mobilize to break ground on the building. The new Station 2 offices should be completed by the end of 2018. The Bay Meadows development itself is roughly 65 percent complete, the developers said.
Ground is being broken at a time when some experts point to indications of a bit of softness in the Bay Area job market and a modest increase in vacancy levels for offices throughout Silicon Valley.
The major office tenants include some tech companies: SurveyMonkey, OpenText, Ten-X and Zuora. The retailers include Fieldwork Brewing Co., Blue Bottle Coffee, Roam Artisan Burgers, Tin Pot Creamery and LIFT fitness.
“An open, bright environment, optimal ergonomic work spaces, and convenient access to a variety of restaurants” were among the items on the wish lists of employees for their new offices at Bay Meadows, said Steve Umphreys, a senior vice president with Zuora. Those needs were met, asserted Umphreys, who added, “our employees now have better commute options, including bicycle storage, electric car charging stations, and a short walk to the Hillsdale Caltrain Station.”
The office segments of Bay Meadows got their first big boost from a lease by SurveyMonkey. Since then, leasing interest has been steady, according to Jack Troedson, an executive managing director at Newmark Cornish & Carey, a commercial realty brokerage.
“We are getting a lot of interest in the new building” from prospective tenants, Troedson said. “Tenants right now are being very selective. Tenants are really focused on recruitment and retention.”
The Bay Meadows complex also benefits from a nearby Caltrain station, brokers said.
“Employees want transit options, they want transit access, and they want amenities,” Troedson said. “Companies want their employees to walk outside the office and feel some vibe, get something to eat, grab some coffee, get a beer.”
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