LOS ANGELES – Kilroy Realty Corporation (NYSE: KRC) today said it has signed new or renewing leases on approximately 945,000 square feet of space at several of its stabilized properties during the past month. Rents on the leases are up approximately 26% on a GAAP basis and 6% on a cash basis. The average lease term is approximately nine years.
The leases span three of the company’s four major markets: San Diego, Seattle and San Francisco. In San Diego, the company signed multiple leases, including a 145,000-square-foot lease with General Atomics at its Kilroy Sabre Springs property on the I-15 Corridor, backfilling a large lease expiration scheduled for July. At Del Mar Corporate Center, the company signed 48,000 square feet of leases to backfill a 127,000-square-foot expiration scheduled for October. In Seattle, the company executed a 163,000-square-foot lease renewal and extension with Adobe at Fremont Lake Union Center. And in San Francisco, the company signed multiple leases, including a new lease with Nektar Therapeutics for up to 136,000 square feet at 360 Third Street and a new lease with a technology company for approximately 375,000 square feet at 301, 333 and 345 Brannan Street. 333 Brannan Street is a 185,000-square-foot ground-up, LEED Platinum office project, developed by KRC in 2015; 301 Brannan Street is an 83,000-square-foot historic office property that was purchased by the company in 2011; and 345 Brannan Street is a 110,000-square-foot office project that KRC is in escrow to purchase later this year.
Additional details on the company’s most recent leasing activity will be discussed during KRC’s Investor Day presentation on June 4, 2018 from 2:00 pm to 5:00 pm Eastern Time. The presentation will be webcast live on the company’s website at http://investors.kilroyrealty.com/event, where a replay will also be available following the live broadcast.
“West Coast real estate markets continue to outperform,” said John Kilroy, the company’s Chairman and Chief Executive Officer, “with strong demand generated by a wide range of companies confronting increasingly limited supply. Our portfolio of best-in-class properties, situated in attractive urban environments and designed for efficiency, sustainability and the creative needs of a modern workforce, remain in constant demand.”
About Kilroy Realty Corporation
Kilroy Realty Corporation (KRC), a publicly traded real estate investment trust and member of the S&P MidCap 400 Index, is one of the West Coast’s premier landlords. The company has over 70 years of experience developing, acquiring and managing office and mixed-use real estate assets. The company provides physical work environments that foster creativity and productivity and serves a broad roster of dynamic, innovation-driven tenants, including technology, entertainment, digital media and health care companies.
At March 31, 2018, the company’s stabilized portfolio totaled approximately 13.9 million square feet of office space located in the coastal regions of Los Angeles, Orange County, San Diego, the San Francisco Bay Area and Greater Seattle and 200 residential units located in the Hollywood submarket of Los Angeles. In addition, KRC had five projects totaling approximately 2.1 million square feet of office and PDR space, 237 residential units and 120,000 square feet of retail space under construction.
The company has been recognized by GRESB as the North American leader in office sustainability for the last four years and is listed in the Dow Jones Sustainability World Index. At the end of the first quarter, the company’s stabilized portfolio was 59% LEED certified and 71% of eligible properties were ENERGY STAR certified. More information is available at http://www.kilroyrealty.com.
