LOS ANGELES – Kilroy Realty Corporation (NYSE: KRC, the “company”, “Kilroy”) today announced it signed approximately 223,000 square feet of new or renewing leases in its stabilized and development portfolio in October. Average rents in the recently executed leases were up approximately 18.5% on a cash basis and 45.5% on a GAAP basis over the prior leases. Year to date, KRC has signed new or renewing leases on over 785,000 square feet in its stabilized and development portfolio, of which over 355,000 square feet was signed in the third quarter and October. The stabilized portfolio is currently 93% leased.
Some highlights from October leasing include:
An 11-year lease with a global consulting firm for 28,000 square feet of office space in our recently developed 2100 Kettner project, a LEED Platinum office building totaling approximately 205,000 square feet in San Diego’s vibrant Little Italy submarket.
A 10-year renewal with a scientific research and development services firm, for 70,000 square feet of space at Kilroy Centre Del Mar, a five-building campus located in San Diego’s coastal Del Mar submarket.
A 15-year lease with Page, a national full-service design firm, for 51,000 square feet of office space at Indeed Tower in Austin. Indeed Tower, acquired in 2021, is a LEED Platinum, 36-story office project totaling approximately 734,000 square feet in the heart of Austin’s central business district. The project is in the tenant improvement phase and is expected to stabilize in early 2024.
Fernando Urrutia, the company’s Senior Vice President, Leasing for the Austin region, stated, “We are thrilled to have Page join the roster at Indeed Tower. Page was the architect for the building, and their decision to conduct business at Indeed Tower is a testament to the excellence of the project.”
About Kilroy Realty Corporation
Kilroy Realty Corporation (NYSE: KRC, the “company”, “Kilroy”) is a leading U.S. landlord and developer, with operations in San Diego, Greater Los Angeles, the San Francisco Bay Area, the Pacific Northwest and Austin, Texas. The company has earned global recognition for sustainability, building operations, innovation and design. As pioneers and innovators in the creation of a more sustainable real estate industry, the company’s approach to modern business environments helps drive creativity and productivity for some of the world’s leading technology, entertainment, life science and business services companies.
The company is a publicly traded real estate investment trust (“REIT”) and member of the S&P MidCap 400 Index with more than seven decades of experience developing, acquiring and managing office, life science and mixed-use projects.
As of September 30, 2022, Kilroy’s stabilized portfolio totaled approximately 16.2 million square feet of primarily office and life science space that was 90.8% occupied and 92.6% leased. The company also had more than 1,000 residential units in Hollywood and San Diego, which had a quarterly average occupancy of 93.5%. In addition, the company had one in-process life science redevelopment project with a total estimated redevelopment cost of $25.0 million, totaling approximately 52,000 square feet, and three in-process development projects with an estimated total investment of $1.7 billion, totaling approximately 1.7 million square feet of office and life science space. The in-process development and redevelopment office and life science space is 36% leased.
A Leader in Sustainability and Commitment to Corporate Social Responsibility
The company is listed on the Dow Jones Sustainability World Index and has been recognized by industry organizations around the world. GRESB has named Kilroy the listed sustainability leader for Office in the Americas for eight of the last ten years. Other honors have included the National Association of Real Estate Investment Trusts’ (NAREIT) Leader in the Light award for eight consecutive years and ENERGY STAR Partner of the Year for nine years as well as ENERGY STAR’s highest honor of Sustained Excellence, for the past seven years.
Kilroy is proud to have achieved carbon neutral operations across our portfolio since 2020. The company’s office portfolio was 71% LEED certified and 40% Fitwel certified, and 76% of eligible properties were ENERGY STAR certified as of September 30, 2022.
A big part of the company’s foundation is its commitment to enhancing employee growth, satisfaction and wellness while maintaining a diverse and thriving culture. For the third year in a row, the company has been named to Bloomberg’s Gender Equality Index—recognizing companies committed to supporting gender equality through policy development, representation, and transparency.
