UCSF Health Signs Lease at Kilroy Oyster Point

The University of California, San Francisco, is continuing its Bay Area expansion with a 280,000-square-foot lease in South San Francisco.

UCSF Health signed on to be an anchor tenant at Kilroy Realty Corporation’s Kilroy Oyster Point, taking up one of three buildings that are part of the roughly 875,000-square-foot second phase of the project completed last year, the San Francisco Business Times reported. The deal marks the largest one signed at the Oyster Point development since 2019 when Stripe took about 420,000 square feet in the project’s first phase.

Terms of the lease, including rent price, were not disclosed. The agreement is set to last 16 and a half years.

UCSF Health will move its pharmacy and clinical laboratory groups from their hospital campuses to the new Kilroy space at 369 Oyster Point Boulevard, Brian Newman, chief of real estate at UCSF, told the Business Times. The university will open the new facility in early 2029.

The San Francisco university has been in expansion mode across the Bay Area over the past two years. In September 2024, the University of California Board of Regents approved a plan to build a 300,000-square-foot cancer center at Fifth Space’s Power Station development in San Francisco’s Dogpatch neighborhood. It began construction on the nearly $500 million project last year.

Last month, the university purchased two buildings in Mission Bay from Alexandria Real Estate Equities for $767 million. UCSF’s School of Dentistry will relocate to 409 Illinois Street, as the school plans to turn the approximately 280,000-square-foot building into dental clinics and a 60,000-square-foot education center for students enrolled in the university’s dentistry, medicine, nursing, pharmacy and physical therapy programs. Work is expected to kick off this year and finish in 2029. The school already occupies the adjacent 499 Illinois Street building.

Kilroy began work on the second phase of Kilroy Oyster Point in 2021. As of the third quarter of last year, prior to UCSF’s new deal, the company inked 84,000 square feet in new leases.

— Chris Malone Méndez