The five-story building at 499 Forbes Blvd. in South San Francisco has mirrored the ups and downs of the region's biotech industry. It was built by Aralon Properties and leased to cancer test developer InterVenn Biosciences in 2022, just as billions of dollars in investment flooded life science real estate in the wake of the COVID-19 pandemic.
A year later, InterVenn abruptly canceled its lease to save money, part of a wave of downsizing by life science companies to conserve cash amid tightening financial market.
Against that backdrop, Elon Musk's brain implant company Neuralink leased the entire 144,200-square-foot building, illustrating how South San Francisco remains a critical hub for life sciences, with roughly 7.8 million square feet of office inventory concentrated in biotech and research facilities.
The lease enabled the next phase of one of the most ambitious neurotechnology efforts underway. It garnered a 2026 CoStar Impact Award, as judged by real estate professionals with knowledge of the market.
Neuralink, based in nearby Fremont, is working on an implant that aims to help people with spinal cord injuries do basic tasks.
The South San Francisco lease is a sign that growth is gradually returning to the Bay Area’s life science sector, a top national biotech hub along with Boston and San Diego. San Francisco saw an upturn in life science leasing activity last year. Combined with a slowdown in the construction pipeline, it has stemmed the sector’s rising vacancy rate.
In addition to the Neuralink lease, Twist Bioscience renewed its commitment for 93,971 square feet at 681 Gateway Blvd. Smaller deals, such as Biogen's 35,532-square-foot sublease at Gateway of the Pacific III, highlight demand for specialized lab space even as overall absorption remains negative.
About the project: Neuralink operates at the intersection of neuroscience, engineering and artificial intelligence, requiring facilities that go far beyond conventional laboratory or R&D space. It needed a highly specialized environment capable of supporting advanced research, precision manufacturing, clinical operations and fast-growing interdisciplinary teams.
South San Francisco offered one of the few locations in the region capable of accommodating Neuralink's highly specialized requirements. The decision to remain and expand there reflects a long-term commitment to the region's innovation ecosystem.
The build-out at 499 Forbes Blvd. incorporates advanced laboratory environments, clean rooms, precision manufacturing areas and collaborative engineering workspaces. The facility supports unusually high-power loads, specialized mechanical systems and secure infrastructure necessary for sensitive research. Meeting these requirements required close coordination among the tenant, ownership and engineering teams.
What the judges said: This is a "major company at the convergence of AI and biotech, indicating the future direction of the economy," said David Hosler, a vice president at Eastdil Secured.
They made it happen: Danny Shiblaq and Brent Wickam of Urban Rock Properties of Burlingame represented Neuralink in the deal.