New SamTrans headquarters to begin ‘finish work’ in April

But there are still a number of improvements that must be made before the transit agency can move its offices to the new building.

“We have two different buckets. One is the tenant improvement project scope which the landlord is constructing on behalf of SamTrans,” Project Manager Kris McGee said.

Landlord improvements include updating the work environment, such as workstation and office spaces, as well as board and break rooms. There will also be office space for the Redi-Wheels program and transit police.

“The tenant improvement budget is $48 million. This comprises the $36.8 million tenant improvement allowance that was already within the lease structure with the owner and landlord. That also includes the $11.5 million that was already approved by the board in 2024. Separately, we have the nontenant improvement budget for $26 million,” McGee said.

Last month, the agency finished construction drawings and is waiting on permits from the city of Millbrae, which is expected to be finalized by the end of April.

After the landlord hands over the building to SamTrans, the agency will work with a general contractor to make updates to equipment, security systems and furniture.

SamTrans finalized the purchase of its new headquarters at the end of 2023. The deal is part of a lease-to-purchase agreement, where the agency will initially lease the property and has the option to purchase it after 30 months for $126 million, which will be paid over a 30-year period from SamTrans’ reserves.

The current headquarters building was purchased by SamTrans in 1990, and the cost to adequately update the site is higher than the building’s worth, according to previous staff reports. While previous efforts leaned toward rebuilding the structure on the same property, the agency pivoted its strategy to take advantage of a commercial real estate market with high vacancy rates and more affordable options.

Last March, after SamTrans announced it would be vacating its San Carlos headquarters, Caltrain began exploring options to lease or purchase office space near one of its stations. After extensive deliberation, the Caltrain Board of Directors determined that the facilities at the new Millbrae office best meet its needs. The office would also be directly next to Caltrain, BART and SamTrans.

Construction on tenant improvements is expected to begin by April, with final completion slated for the first half of 2026.