Kilroy Realty Signs Leases Totaling 945,000 Square Feet across Three West Coast Markets
04 June 2018 - 11:21PM
Business Wire
Continued Strong Leasing Performance Boosts
Year-To-Date Total to More Than 1.6 Million Square Feet
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.
Forward-Looking Statements. This press release contains
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking
statements are based on our current expectations, beliefs and
assumptions, and are not guarantees of future performance.
Forward-looking statements are inherently subject to uncertainties,
risks, changes in circumstances, trends and factors that are
difficult to predict, many of which are outside of our control.
Accordingly, actual performance, results and events may vary
materially from those indicated in the forward-looking statements,
and you should not rely on the forward-looking statements as
predictions of future performance, results or events. Numerous
factors could cause actual future performance, results and events
to differ materially from those indicated in the forward-looking
statements, including, among others: global market and general
economic conditions and their effect on our liquidity and financial
conditions and those of our tenants; adverse economic or real
estate conditions generally, and specifically, in the States of
California and Washington; risks associated with our investment in
real estate assets, which are illiquid, and with trends in the real
estate industry; defaults on or non-renewal of leases by tenants;
any significant downturn in tenants’ businesses; our ability to
re-lease property at or above current market rates; costs to comply
with government regulations, including environmental remediation;
the availability of cash for distribution and debt service and
exposure to risk of default under debt obligations; increases in
interest rates and our ability to manage interest rate exposure;
the availability of financing on attractive terms or at all, which
may adversely impact our future interest expense and our ability to
pursue development, redevelopment and acquisition opportunities and
refinance existing debt; a decline in real estate asset valuations,
which may limit our ability to dispose of assets at attractive
prices or obtain or maintain debt financing, and which may result
in write offs or impairment charges; significant competition, which
may decrease the occupancy and rental rates of properties;
potential losses that may not be covered by insurance; the ability
to successfully complete acquisitions and dispositions on announced
terms; the ability to successfully operate acquired, developed and
redeveloped properties; the ability to successfully complete
development and redevelopment projects on schedule and within
budgeted amounts; delays or refusals in obtaining all necessary
zoning, land use and other required entitlements, governmental
permits and authorizations for our development and redevelopment
properties; increases in anticipated capital expenditures, tenant
improvement and/or leasing costs; defaults on leases for land on
which some of our properties are located; adverse changes to, or
implementations of, applicable laws, regulations or legislation, as
well as business and consumer reactions to such changes; risks
associated with joint venture investments, including our lack of
sole decision-making authority, our reliance on co-venturers’
financial condition and disputes between us and our co-venturers;
environmental uncertainties and risks related to natural disasters;
and our ability to maintain our status as a REIT. These factors are
not exhaustive and additional factors could adversely affect our
business and financial performance. For a discussion of additional
factors that could materially adversely affect our business and
financial performance, see the factors included under the caption
“Risk Factors” in our annual report on Form 10-K for the year
ended December 31, 2017 and our other filings with the
Securities and Exchange Commission. All forward-looking statements
are based on currently available information, and speak only as of
the date on which they are made. We assume no obligation to update
any forward-looking statement made in this press release that
becomes untrue because of subsequent events, new information or
otherwise, except to the extent we are required to do so in
connection with our ongoing requirements under federal securities
laws.
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version on businesswire.com: https://www.businesswire.com/news/home/20180604005751/en/
Kilroy Realty CorporationTyler H. RoseExecutive Vice
Presidentand Chief Financial Officer(310) 481-8484orMichelle
NgoSenior Vice Presidentand Treasurer(310) 481-8581
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