Currently, around two dozen commercial and residential redevelopment projects are either entitled, under construction or pending city planning approval in the area north of AT&T Park and south of Market Street between 2nd and 6th Streets. This equates to more than 5.3M square feet of future commercial office development currently being tracked by JLL. Of this, more than 700,000 square feet is under construction or about to come out of the ground and, of this space, more than 85 percent is pre-leased.
Central SOMA has become something of a hub for start ups and established technology firms, drawn by the city’s huge investment in transport infrastructure. Yelp, Reddit and Zipcar are among those located in the neighborhood and new buildings will accommodate Dropbox and Stripe.
The Central SOMA plan also emphasizes the need for housing. Projects sponsored by Millennium Partners and Trumark Urban are approved and expected to deliver a total of 329 condominium units onto the market by 2018, while at least three other projects are pending approval, which would more than 1,300 residential units to Central SOMA. In total, the Central SOMA Plan has the potential to add more than 4,200 new housing units as well as add enough commercial space to accommodate almost 50,000 new jobs over the next few years.
In spite of the frenzy of activity in the neighborhood, more investment opportunities exist and are likely to emerge as the city completes the Central Subway light rail project.
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