HCP is breaking ground on the second phase of The Cove at Oyster Point, a life science development in South San Francisco.

Tenants have pre-leased half of the first phase of The Cove, which started construction last year. The project appeals to life science companies looking for a place to innovate and collaborate, says Jon Bergschneider, EVP of HCP Life Science Estates. HCP is the largest life science property owner in the Bay Area, with more than 5M SF (more than 3M SF is in South San Francisco).

The 1M SF waterfront campus on Oyster Point Boulevard will ultimately hold seven buildings from 115k SF to 182k SF for single and multiple tenants. The pre-certified LEED Silver project will have 5.5 acres of outdoor green space, retail and a future on-site hotel. A 30k SF amenity center will open Q3 with food service, fitness and meeting space.

Phase 1's two buildings will deliver Q3 2016. Phase 2's two buildings, a four-story parking garage, and 20k SF of retail and restaurant space is expected to be ready for occupancy in Q3 2017. CBRE's Rick Friday and Chris Jacobs are the leasing agents. The market has improved in the past year with increasing rental rates and zero vacancy in South San Francisco, creating tremendous demand for additional supply, Chris says.