A weekly intel report for property owners, developers, and facility managers on the projects and policies shaping the San Francisco Bay Area.
Wednesday, June 24 through Tuesday, June 30, 2026
The last week of June marks a significant pivot in how the Bay Area handles its land. From the persistent push to convert industrial and military sites into commercial hubs to the creative use of shipping containers for permanent housing, the region is proving that the "old ways" of development are being rewritten. For property owners and managers, the takeaway this week is clear. The projects moving forward are those that solve multiple problems at once: cleaning up contaminated land, meeting aggressive housing mandates, and preparing for the electrification of the California fleet.
In West Oakland, the long-stalled redevelopment of the former Army Base is finding new life through a major retail negotiation. Down the Peninsula, Menlo Park is seeing office-heavy master plans yield to the reality of the residential market. These shifts are not just local trends. They are indicators of a broader market correction where flexibility in design and land use is the primary driver of project viability. If you are sitting on a portfolio of commercial assets, the news this week suggests that the best path forward involves a mix of high-volume retail and high-density residential, often on the same block.
What you will learn
- The financial and operational details of the proposed Costco at the West Oakland Army Base.
- How to prepare commercial assets for the 2026 Title 24 electric vehicle charging mandates.
- The rise of modular and container-based construction as a solution for the Bay Area's housing deficit.
Bay Area Development and Construction Pulse
Costco Advances at West Oakland Army Base
The City of Oakland is entering the final stretch of negotiations for a massive retail hub on the West Oakland Army Base. The City Council committee is currently reviewing an Exclusive Negotiating Agreement (ENA) with Costco for a 150,000 square foot warehouse and fueling station at 101 Admiral Robert Toney Way. This 23-acre site has long been a headache for the city due to soil contamination that restricts residential use. Costco is prepared to pay a $300,000 nonrefundable fee just to stay at the table. For owners in the area, this represents a major victory. The project is expected to bring $3 million in annual tax revenue and create 400 jobs with an average wage of $32 per hour. It turns a liability into a high-yield commercial asset.
Lane Partners Pivots to Housing in Menlo Park
Lane Partners has significantly revised its Parkline master plan at 333 Ravenswood Avenue in Menlo Park. The updated proposal now calls for 1,082 homes, a steep climb from the original 800 units. The mix includes 754 apartments, 220 single-family houses, and 108 townhomes. To make room, the office component was trimmed by nearly two acres. Skidmore Owings & Merrill is leading the master plan, which reflects a clear market reality: office demand remains sluggish while the appetite for high-quality housing in the Peninsula continues to grow. Developers should note that local jurisdictions are increasingly favorable toward these residential "up-zoning" shifts.
Oak Hill Mixed-Use Breaks Ground in Lafayette
Construction is officially underway at 1001 Oak Hill Road in Lafayette. Diamond Construction, which is self-performing much of the early work, started on the 7-story building that will sit within walking distance of the Lafayette BART station. The project features 85 units, with 11 designated as below market rate, alongside 2,000 square feet of retail. Amenities like a golf simulator and fitness center target a high-end tenant pool looking for transit-oriented luxury. Completion is slated for the summer of 2028. This project serves as a benchmark for mid-rise infill success in affluent East Bay suburbs.
Modular Housing Delivery at El Cerrito Plaza
The transformation of the El Cerrito Plaza BART parking lot is hitting a major milestone. A team led by Related California is using modular construction units from Autovol to build Parcel A South. This 6-story building will provide 70 affordable homes for families earning between 30 and 60 percent of the Area Median Income. By using off-site modular assembly, the project is moving significantly faster than traditional stick-built construction. The project is backed by a $39.1 million Affordable Housing and Sustainable Communities (AHSC) grant and is the first phase of a larger 743-unit master plan. For developers, this is a clear signal that modular is no longer a niche play; it is the preferred method for high-density affordable projects.
Presidio Bay Unveils Menlo Park Urban Village
Presidio Bay has released the latest renderings for a massive 17.75-acre redevelopment of the former USGS campus at 345 Middlefield Road. The project, dubbed an "urban village," includes 670 homes, 713,000 square feet of office space, and 43,000 square feet of retail. The design team is a powerhouse group including Gensler and Studio MLA. This project illustrates the scale required to make large-scale campus redevelopments work in the current economic climate. It balances employment hubs with enough housing to create a self-sustaining neighborhood.
Construction Climbs at 1123 Sutter Street in Lower Nob Hill
Construction is moving quickly at 1123 Sutter Street in San Francisco's Lower Nob Hill, where concrete has now passed the eighth floor for a 22-story, 303-unit mixed-use tower. David Baker Architects designed the project, Martin Building Company is developing it, and Nibbi is serving as general contractor. The unit mix includes 75 studios, 58 one-bedrooms, 128 two-bedrooms, 31 three-bedrooms, and 11 four-bedrooms, with 102 deed-restricted affordable units. The project also includes 2,800 square feet of commercial space, a 4,000 square foot childcare facility, a 68-stall public garage in the renovated historic structure at 1101 Sutter Street, plus a 30-car garage and a 218-stall bicycle room. For owners and operators, this is a clear signal that dense mixed-use housing with family-sized units and childcare is still getting built in core San Francisco neighborhoods when the program solves more than one urban constraint.
Mission Dolores Infill Plan Shrinks at 3832 18th Street
Preliminary plans have been published for a small residential infill project at 3832 18th Street in San Francisco's Mission Dolores neighborhood. The four-story proposal, designed by RKD Consulting, would yield roughly 5,920 square feet with a larger apartment above a junior ADU and a two-car garage. Vanguard Properties is the applicant, operating through M-J SF Investments LLC, and the filing is being streamlined under Senate Bill 330 and SB 423. The notable detail is the downshift in scope. This is a steep reduction from the 2022 entitlements for a six-story complex with 19 group housing-style units on the same 0.09-acre site. Estimated construction cost is about $1.6 million. For owners, this is a reminder that entitlement value is only real if the program still pencils when the project is ready to move.
Preparing Commercial Properties for 2026 EV Infrastructure
The landscape for commercial building operations is shifting rapidly under the weight of California’s updated building codes. For projects permitted on or after January 1, 2026, the requirements for electric vehicle (EV) charging infrastructure are no longer optional "add-ons" for sustainability points. They are hard mandates in the 2025 CALGreen and Title 24 updates. Property managers and owners need to look at their panel capacity now, not when the tenant asks for a charger.
Understanding the New Mandates
The updated code requires a substantial increase in "EV-capable" and "EV-ready" spaces. In a standard commercial parking lot with over 200 spaces, you are now looking at making 20 percent of those spaces EV-capable. More importantly, 25 percent of those capable spaces must have actual Level 2 chargers installed. This means for every 100 parking stalls, you might be looking at five active chargers and 15 more ready for hardware.
The Real Cost of Capacity
Installed costs for a single Level 2 commercial port typically range from $3,000 to $12,000. If you are installing a bank of ten chargers, you aren't just buying hardware. You are likely facing a significant electrical service upgrade. A single Level 2 charger can pull 30 to 40 amps. Ten of them at full power can pull more than a small office building. If your existing switchgear is already at 80 percent capacity, the utility transformer upgrade alone could cost you six figures.
Leveraging Load Management
To avoid the $100,000 transformer bill, smart operators are turning to Automatic Load Management Systems (ALMS). These systems allow you to install more chargers than your panel "mathematically" supports by capping the total draw. When multiple cars plug in, the ALMS throttles the output to each vehicle so the total load stays within safe limits. The 2026 code explicitly allows for this, provided each station can still deliver at least 3.3 kW. It is the single most effective way to meet compliance without tearing out your main switchboard.
Permitting, Codes, and Compliance Watch
Marina Safeway Project Faces Legal Challenge
The massive 790-unit redevelopment of the Marina Safeway at 15 Marina Boulevard is hitting a regulatory snag. Opponents are challenging the project's eligibility under AB 2011, the law that fast-tracks housing on commercial land. The argument hinges on the "urban use" requirement. To qualify, 75 percent of adjoining land must be developed. Critics argue that because the site sits next to the Marina Green and Fort Mason (open parks), it fails the test. The San Francisco Planning Department has given conditional approval, but the August 1 design review deadline is a critical date for the project's survival.
Emeryville Sutter Health Campus Study Session
The Emeryville Planning Commission is digging into the details of Sutter Health’s proposed 1.3 million square foot medical campus. The project, located at the former BioMed Realty site, includes a 17-story hospital and a helipad. The primary concern during the June session was traffic. With an estimated 20,000 daily trips, the impact on the Horton Street bike boulevard is a major point of friction. The project moves to the City Council for a study session on July 21. For contractors, this is one of the largest healthcare opportunities in the East Bay for the next decade.
Alameda Endorses ADU-to-Condo Conversions
In a move to increase homeownership opportunities, the Alameda Planning Board has endorsed AB 1033. This allows homeowners to sell their Accessory Dwelling Units (ADUs) as separate condominiums. This is a game-changer for residential contractors and property owners looking to monetize backyard builds. Separately, the board is reviewing the Oakland Roots Soccer Club’s plan for a temporary stadium at Harbor Bay Parkway, a project that would require significant rapid-build infrastructure.
Workforce, Materials, and Vendor Notes
The Rise of Off-Site Modular
The El Cerrito Plaza project highlights a major shift in the Bay Area labor and materials market. By using Autovol modular units, the developer is effectively bypassing many of the on-site logistical bottlenecks that plague East Bay construction. While modular doesn't always save on raw material costs, the schedule compression is undeniable. We are seeing more "delivery method" shifts where developers are willing to pay a premium for factory-built components to avoid the rising costs of on-site labor and insurance.
Self-Performance Trends
Diamond Construction’s recent groundbreaking in Lafayette featured a notable detail: the firm is self-performing significant portions of the work. In a market where high-quality subcontractors are booked months in advance, general contractors with in-house crews for concrete and framing have a massive competitive edge. This allows for tighter control over the punch list and, more importantly, the schedule. Owners should ask prospective GCs about their self-performance capabilities during the RFP stage.
Featured Project: Homefulness 2 in East Oakland
The "Homefulness 2" project at 7600 MacArthur Boulevard is a study in creative urban infill. Led by POOR Magazine, this project is using shipping containers to create 11 efficiency apartments for very low-income residents. This isn't a temporary shelter. It is a permanent housing solution built from repurposed steel.
Design and Scope
The two-story structure, designed by R2SD Design, uses a modular layout that maximizes a small urban footprint. The project includes 770 square feet of office space for community services. By using containers, the project avoids much of the traditional framing labor and creates a highly durable, fire-resistant building envelope.
Strategic Lessons
The lesson for developers here is about site acquisition and unconventional materials. POOR Magazine purchased this site for $350,000 in 2021 after it was slated for luxury development. By pivoting to a "poor-people-led" housing model and using off-grid solar technology, they have managed to move forward on a site that many larger developers found "unworkable." It proves that small-scale, innovative construction methods can unlock value on difficult, contaminated, or oddly shaped lots.
Industry Calendar
Event: Historic Preservation Commission Hearing
Date and Time: Wednesday, July 1, 2026, 12:30 PM PT
Venue: San Francisco City Hall, Room 400
Cost: Free
Register: sfplanning.org/events
Host: City of San Francisco Planning Department
Event: Real Estate Insider: A Closer Look at The Rotunda
Date and Time: Wednesday, July 8, 2026, 11:30 AM PT
Venue: The Rotunda, 300 Frank H. Ogawa Plaza, Oakland, CA
Cost: $45 Members | $75 Non-members
Register: naiopsfba.org/events
Host: NAIOP San Francisco Bay Area
Event: BOMA San Francisco Asset Management Series
Date and Time: Thursday, July 9, 2026, 9:00 AM PT
Venue: BOMA SF Training Center, 233 Sansome St, San Francisco, CA
Cost: $150
Register: bomasf.org
Host: BOMA San Francisco
Event: SF Planning Commission Hearing
Date and Time: Thursday, July 9, 2026, 1:00 PM PT
Venue: San Francisco City Hall, Room 400
Cost: Free
Register: sfplanning.org
Host: SF Planning
Event: BOMA Java Summer Networking
Date and Time: Wednesday, July 15, 2026, 8:30 AM PT
Venue: TBD – Downtown San Francisco
Cost: $25
Register: bomasf.org
Host: BOMA San Francisco
Event: Emeryville City Council Study Session: Sutter Health
Date and Time: Tuesday, July 21, 2026, 6:00 PM PT
Venue: Emeryville City Hall, 1333 Park Ave, Emeryville, CA
Cost: Free
Register: emeryville.org
Host: City of Emeryville
Development and Compliance Timeline
| Milestone Date | Project / Action | Source / Authority |
|---|---|---|
| June 23, 2026 | ENA negotiations for West Oakland Costco begin | Oakland City Council |
| June 25, 2026 | Lafayette Oak Hill mixed-use groundbreaking | Diamond Construction |
| June 25, 2026 | Presidio Bay releases USGS site renderings | The Real Deal |
| June 26, 2026 | Marina Safeway AB 2011 challenge filed | SF Planning Department |
| June 27, 2026 | El Cerrito Plaza modular unit delivery | Related California |
| July 1, 2026 | Historic Preservation Commission Hearing | SF Planning |
| July 21, 2026 | Emeryville Sutter Health Study Session | City of Emeryville |
| August 1, 2026 | Deadline for Marina Safeway design review | SF Planning |
| January 1, 2027 | Completion of El Cerrito Plaza Phase 1 | Related California |
| Summer 2028 | Target completion for Oak Hill Lafayette | Diamond Construction |
EV Charging Cost Benchmarks (Commercial Level 2)
| Component | Cost Range (Per Port) | Notes |
|---|---|---|
| Hardware (Charger) | $500 – $2,500 | Networked vs. non-networked |
| Installation & Labor | $2,500 – $9,000 | Includes conduit and mounting |
| Permitting & Soft Costs | $500 – $1,500 | Varies by jurisdiction |
| Total Standard Install | $3,500 – $13,000 | Excludes major panel work |
| Utility Transformer Upgrade | $50,000 – $150,000+ | Only if service is at capacity |
Case Example: Self-Performance in High-Value Suburbs
The Oak Hill project in Lafayette serves as a textbook example of how to execute transit-oriented development (TOD) in a supply-constrained market. Diamond Construction opted to self-perform the critical path items during the groundbreaking phase. This move reduced the risk of "no-show" subcontractors which has become a primary cause of schedule slippage in the East Bay. By controlling the concrete and site-prep crews internally, they were able to hit their June groundbreaking target despite a tightening labor market. For property owners, this illustrates the importance of vetting a contractor’s "bench strength" during the pre-construction phase.
What Smart Critics Argue
Critics of the West Oakland Costco project argue that a warehouse club is an outdated solution for an urban core that needs high-density housing. However, the site’s contamination makes it legally and financially unfeasible for residential development. The city's stance is that a 400-job revenue generator is a far better outcome than 23 acres of empty, toxic land.
Others argue that the "modular revolution" in El Cerrito is overstated. They point to the fact that modular transport costs and specialized crane labor can eat up the savings gained from factory assembly. While true in some cases, the schedule certainty in a high-interest-rate environment often outweighs the marginal increase in transport costs.
Finally, opponents of the Marina Safeway project claim that AB 2011 is being "weaponized" to bypass neighborhood character. The evidence-based response from the Planning Department remains that the state housing mandate overrides local "urban use" definitions, provided the site meets the density and affordability requirements.
Key Takeaways
- Land use is shifting toward high-yield retail on sites where residential is restricted by contamination.
- The 2026 Title 24 mandates require immediate planning for electrical service capacity.
- Automatic Load Management (ALMS) is the best way to scale EV charging without massive infrastructure costs.
- Modular construction is becoming the standard for rapid affordable housing delivery in the Bay Area.
- Self-performing general contractors are seeing higher schedule reliability in current labor markets.
- Transit-oriented developments (TOD) like Oak Hill continue to secure financing despite broader market cooling.
- Shipping containers offer a viable, durable path for small-scale, high-impact housing projects.
- State-level laws like AB 2011 are still being tested in the courts, creating temporary uncertainty for some large projects.
Reader Actions
- At Work: Conduct a load study on your commercial parking facilities to determine existing spare ampacity for EV chargers.
- At Home: Research AB 1033 if you own an ADU in Alameda or other participating cities to see if a condo conversion is viable.
- In the Community: Attend the Oakland City Council sessions regarding the West Oakland Army Base to voice support for high-wage retail jobs.
- In Civic Life: Track the Marina Safeway design review on August 1 to understand how AB 2011 challenges might affect future neighborhood projects.
- Extra Step: Reach out to a specialist in modular construction if you are planning a high-density project in 2027 to see if off-site assembly fits your pro-forma.
- For Investors: Look for "distressed" office campuses in the Peninsula that are ripe for residential rezoning, following the Lane Partners model.
FAQ
Does the 2026 Title 24 code apply to existing buildings?
The new EV requirements generally apply to new construction and major renovations where more than 10 percent of the parking area is being altered.
How does the Costco project benefit West Oakland residents?
Beyond the 400 jobs, the project includes an Exclusive Negotiating Agreement that usually involves community benefit funds and local hiring mandates.
Can shipping containers meet the California Building Code for fire safety?
Yes, when modified correctly by a licensed architect and contractor, shipping container homes meet all R-2 occupancy fire and life safety requirements.
Why is modular construction being used in El Cerrito?
It significantly reduces the construction duration on-site, which minimizes disruption to the active BART station and cuts down on interest carry costs for the developer.
What is the timeline for the Sutter Health hospital in Emeryville?
The project is currently in the study session phase. If approved, construction is likely still two to three years away given the scale of the facility.
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Sources
- SF Standard, "Oakland advances Costco negotiations for West Oakland Army Base site," June 23, 2026.
- The Real Deal, "Lane Partners shifts SRI campus plan toward more housing in Menlo Park," June 26, 2026.
- Bay Area Telegraph, "Lafayette breaks ground on Oak Hill," June 25, 2026.
- Hoodline, "El Cerrito Plaza BART lot transforms into 70 affordable homes," June 27, 2026.
- SF YIMBY, "POOR Magazine's Homefulness 2 at 7600 MacArthur Blvd," June 20, 2026.
- SFist, "Marina Safeway AB 2011 eligibility challenged," June 26, 2026.
- E'ville Eye, "Emeryville Planning Commission holds first study session on Sutter Health," June 25, 2026.
- Alameda Post, "Alameda Planning Board endorses ADU-to-condo conversions," June 26, 2026.
- California Energy Commission, "2025 Building Energy Efficiency Standards (Title 24)," Updated 2026.
- BOMA San Francisco, "Calendar of Events July 2026," Accessed June 28, 2026.
- NAIOP San Francisco Bay Area, "Industry Events and Programming," Accessed June 28, 2026.
- San Francisco Planning Department, "Commission Calendars and Hearings," Accessed June 28, 2026.
- Andrew Nelson, "Concrete Poured Past 8th Floor for 1123 Sutter Street, Lower Nob Hill, San Francisco," SF YIMBY, June 29, 2026.
- Andrew Nelson, "Preliminary Plans For 3832 18th Street In Mission Dolores, San Francisco," SF YIMBY, June 29, 2026.
Disclaimer: This content is for general informational purposes only and does not constitute legal, financial, engineering, construction, regulatory, or other professional advice. Reading this content does not create a client or contractual relationship with Atlas Premier Services & Consultants. Because every project and property is different, consult qualified professionals regarding your specific circumstances. Atlas Premier Services & Consultants makes no warranties regarding the accuracy or completeness of this information and is not responsible for third-party content or references. Testimonials, examples, and case studies are illustrative only and do not guarantee similar results.