UCSF Health is locking in a massive new foothold on the South San Francisco waterfront, signing a long-term lease for roughly 280,000 square feet at Kilroy Realty’s Oyster Point Phase 2. The deal makes UCSF the anchor tenant in one of the campus’s three new buildings and is part of about 300,000 square feet of new leasing executed in 2025. With this wave of agreements, Phase 2 now has about 384,000 square feet spoken for, or roughly 44 percent of the project, including a 20,000-square-foot genomic sequencing tenant that jumped into a spec-ready suite right away.
Deal Details and Developer Comments
In a press release via Businesswire, Kilroy Realty said the University of California, San Francisco has signed a 16.5-year agreement to occupy an entire KOP 2 building. UCSF will relocate pharmacy and clinical laboratory groups to the site and set up new pathology and genetics operations there. Kilroy said UCSF is expected to begin occupying the building in the fourth quarter of 2027, while the separate 20,000-square-foot lease went to a genomic sequencing foundry that has already moved into a spec suite. “We are excited to welcome these two innovative life science tenants to Kilroy Oyster Point,” Kilroy CEO Angela Aman said in the release.
UCSF's Timeline and Location
As reported by The Real Deal, UCSF Health will take the space at 369 Oyster Point Boulevard. Brian Newman, UCSF’s chief of real estate, told the San Francisco Business Times the university expects to open the new facility in early 2029. That target date differs from Kilroy’s 2027 occupancy estimate in its own release and highlights internal scheduling and build-out timing that local outlets say could extend the ramp-up.
What Will Be Inside the Building
UCSF plans to shift pharmacy and clinical laboratory operations into the new Oyster Point building while also housing pathology and genetics teams there. The genomic sequencing tenant, for its part, is using its 20,000-square-foot suite as a headquarters focused on clinical-grade whole-genome sequencing and related technology work. Kilroy has framed the foundry’s move-in as a proof point for its spec-suite strategy to speed up lab occupancy at the campus, and said these latest leases bring KOP 2’s overall leasing level to about 44 percent. Businesswire carried those details from the company’s announcement.
Where This Fits in the Local Market
Phase 2 of Kilroy Oyster Point spans roughly 875,000 square feet across three buildings, according to the company’s filings with the Securities and Exchange Commission. That footprint is detailed in a SEC report, and the new leases mark a meaningful step toward filling the campus. The Real Deal notes that UCSF’s pact is the largest commitment at Oyster Point since Stripe’s earlier lease in 2019 and slots into a broader run of UCSF expansion moves around the Bay Area.
What to Watch Next
Kilroy has cast these agreements as the capstone to a strong year of leasing at Oyster Point, but the real test will be how construction timelines and tenant improvements line up with UCSF’s internal schedule. As first reported by CoStar, bringing in a major institutional player like UCSF adds heft to South San Francisco’s life science roster and could spur more lab hiring and support services as the rest of the project fills in.
