Key facts
- Kilroy Realty's Oyster Point life sciences campus is in South San Francisco.
- Phase 2 of the Oyster Point campus is 49% leased.
- Phase 2 of the Oyster Point campus is 7% occupied.
- The lab leasing market is currently facing challenges.
- Lease timelines in the lab market are elongated.
- Phase 1 of the Oyster Point campus is fully leased.
- Kilroy Realty is optimistic about future leasing transactions.
Kilroy Realty's Oyster Point life sciences campus, located in South San Francisco, has reached a significant milestone with 49% of its second phase now under lease. However, only 7% of this second phase is currently occupied, reflecting broader challenges within the lab leasing market. This market is characterized by softness and elongated lease timelines, impacting the pace of new agreements. In contrast, the first phase of the Oyster Point campus is fully leased, indicating a strong demand for established spaces. Despite the current market conditions, Kilroy Realty remains optimistic about the potential for future leasing transactions at the campus. The company is actively working to secure new tenants and finalize agreements, navigating the complexities of the life sciences real estate sector.