Chunk of San Mateo Offices Slated for Demolition

More than 20 percent of San Mateo’s office inventory could be headed for demolition.

The Peninsula city, home to more than 8 million square feet of offices, has several demolition projects lined up with more possibly on the way, the San Francisco Business Times reported. Upwards of 1.5 million square feet of offices are functionally obsolete and could either be torn down or converted into housing or mixed-use developments.

There are already a few demolition and redevelopment proposals in the works across San Mateo to breathe new life into these sites as companies downsize or flock to offices in denser areas.

A small office building at 220 West 20th Avenue is proposed for demolition and replacement with a seven-story apartment complex, per the Business Times. The site at 2015 Pioneer Court would be flattened to make way for 10 townhomes. At 1650 Amphlett Boulevard, seven buildings would be cleared for more than 250 townhouses and single-family homes.

“The majority of young, upwardly mobile companies are not going to suburban business parks,” Simon Clark, executive vice president at CBRE, told the Business Times.

Tower Plaza, one of the city’s office buildings, is similarly poised to be turned into housing or a mixed-use development. Tourbineau Real Estate bought the 12-story building last month for $22 million, a sharp discount from its 2019 sale price of $77 million. Since 2020, the building has undergone renovations including the addition of a tenant amenity center with fitness, conference and game rooms, according to Newmark. The goal, as with similar undertakings across the Bay Area, is to attract tenants looking for an amenity-rich building to call home.

San Mateo officials are reportedly seeing an increase in proposals that would convert old office space into housing. The city recently surpassed 3,900 units under review as it works to contribute to the Bay Area’s housing stock amid a statewide shortage, according to the Business Journal.

Under the city’s Regional Housing Needs Allocation, San Mateo must build 7,015 units of housing by 2031.

— Chris Malone Méndez