Genentech is planning a massive overhaul of its 207-acre South San Francisco campus that could cost between $3B and $5B by the time the multiphase project is complete, according to the San Francisco Business Times.
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The first phase of the project, including 1M SF of labs valued at $1.5B, could start work as soon as next year.
The announcement comes despite layoffs at Genentech, totaling 143 last month and 500 last year.
The company’s South San Francisco footprint grew in the last two years following the purchase of infill properties within the existing campus, which includes 55 buildings.
The redevelopment signals a push towards modernization, as the plan includes the removal of older structures, replacing them with newer buildings closer to the company’s headquarters.
In 2023, the company ended commercial manufacturing in South San Francisco, leaving only research and development on its campus there. In 2024, the company’s Vacaville, California, facility was purchased by Swiss firm Lonza, which promised to invest 500M Swiss francs, or about $623M by today's exchange rate, into modernization.
Earlier this year, the company announced plans for a $700M manufacturing facility in North Carolina.
South San Francisco's life sciences market saw a significant amount of growth in the last year, with almost 1.3M SF of new product delivered in 2024 and another 1.2M SF under construction. However, like the rest of the country, South San Francisco has seen decreased demand for lab space as new deliveries come online, pushing up vacancy.
