Forge Development is reconsidering its plans for the former Pacific Steel Casting Company foundry in West Berkeley. The San Diego-based company has submitted a new preliminary application to the city, aiming to partially renovate and reoccupy about 56,000 square feet of the 10-acre property. This move comes two years after Forge first proposed developing a large life sciences campus at the site.
The revised proposal includes demolishing some existing buildings and upgrading others, as well as removing decommissioned equipment and making structural improvements. The company has not confirmed whether it will continue to pursue life sciences tenants or shift focus toward manufacturing or light industrial uses. According to the current site plan, renovations would not immediately prepare the property for new tenants; additional tenant improvement applications are expected in the future.
Forge’s original concept, announced in 2023, involved creating a 900,000-square-foot life sciences campus on the property. However, a formal application was never submitted. This change in direction is occurring as vacancies rise within the life sciences market, impacting similar projects in the region. For example, IQHQ put on hold its planned $1.3 billion, 857,000-square-foot life sciences campus in South San Francisco due to these market conditions.
The Pacific Steel foundry ceased operations in 2018. In response, Berkeley began rezoning efforts in 2021 to allow alternative uses such as light manufacturing, research and development, industrial activities, offices, and laboratories on the site.
Forge purchased the site—including neighboring parcels—for $49 million in 2023. The properties are located at 1320 Second Street, 1314 Second Street, and 1305 Eastshore Highway.
Despite changes to their plans, Forge remains interested in developing the property. “They haven’t pulled away from investing in that property,” said Elizabeth Redman Cleveland of Berkeley’s Office of Economic Development.
Since 2020, Berkeley’s research and development space inventory has more than doubled; however, venture capital funding and tenant demand have slowed considerably. According to CBRE data reported by the San Francisco Business Times, lab vacancy rates reached 31.4 percent during the third quarter of this year.
