Work Stops on Second Centennial Office Tower

SAN FRANCISCO-Amid a quiet leasing market Myers Development Co. quietly halted work last month on the second of two buildings that comprise its speculative 660,000-square-foot Centennial Towers office development along Highway 101 in South San Francisco. Using equity from Stockbridge Real Estate Partners, Myers started the estimated $300-million development in spring 2007.

Work is nearing completion for the 12-story South Tower, which is fully available and has 303,612 square feet of office space, 12,000 square feet of retail space, a 200-seat conference center and a 100-person childcare facility. Work on the 21-story, 358,000-square-foot North Tower stopped after its foundation was poured in November. The project also includes a two-phase 2,000-slip parking structure, the first phase of which is complete, and 50 surface parking spots.

“We have constructed a very unique product in terms of quality and market position but it’s a difficult time,” Myers Development chief Jack Myers tells GlobeSt.com. “A lot of tenants have taken a seat and we’d like to not get too far ahead of ourselves when comes to the market place. At the same time, we think that the worst of all that’s been going on is behind us and have an abiding belief and respect for the Peninsula market. While these are disappointing times when it comes to leasing the market, the fundamentals over time are pretty solid, and despite this malaise, stemming from questions about the economy, that has given us pause, we remain optimistic that we have built the right product type for the right market group, and that there are a group of tenants out there that would work very nicely in this building.”