Canadian enterprise software company OpenText (NASDAQ: OTEX) has pre-leased 108,015 square feet in Wilson Meany’s Bay Meadows mixed-use transit oriented project in San Mateo.
OpenText is leasing two floors of space in the 174,000-square-foot Station 3 building at 2950 S Delaware St., a project which broke ground last November without any slated tenants. The new office is less than two miles away from their current location in San Mateo and is expected to be ready for occupancy by summer 2017.
Bay Meadows is being developed on a former 83-acre racetrack and will contain 770,000 square feet of office space, 1,110 residential units and 18 acres of public parks when completed. It is located next to the future site of the Hillsdale Caltrain Station, which is being moved closer to the development. Construction on the transit side of the project is expected to start in 2017 and finish by 2019.
The Bay Meadows development has successfully emerged out of a lengthy entitlement process – and national market downturn – that temporarily stalled progress on the site. Hundreds of residents have moved into the transit village and the private Nueva School recently kicked off its third school year. Bay Meadows has also become a major destination for commercial tenants in a region hungry for available space. A Colliers International Peninsula market report put total office vacancy in the city of San Mateo in at 7.84 percent with average asking rents for Class A office reaching $5.26 per square foot.
With the pre-lease at Station 3, Wilson Meany has repeated the success of Station 4 another Bay Meadows speculative office development across the street. Although the building is currently still under construction, it is fully leased out by Palo Alto-based SurveyMonkey, who inked a deal last year taking the entire 210,000-square-foot building for its new headquarters.
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