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Kilroy Realty Reports 1.6M SF Of Leasing To Date In West Coast Markets

Kilroy Realty Corp. CEO and Chairman John Kilroy

Though not yet halfway through the year, Kilroy Realty Corp. has signed over 1.6M SF in new and renewal leases across its West Coast markets. The company is on pace to surpass last year’s leasing activity when it signed 2M SF of leases within its stabilized portfolio.

In recent months, the company has signed or renewed leases totaling 945K SF in San Francisco, San Diego and Seattle. Rents on the latest leases are up about 26% on a the basis of generally accepted accounting principles and 6% on a cash basis. These leases average about nine years.

Kilroy also recently completed its $308M acquisition of the 40-acre Oyster Point development site in South San Francisco, where it plans to build 11 laboratory and office buildings.

The latest leasing activity includes a 145K SF lease in San Diego with General Atomics at the Kilroy Sabre Springs asset off the Interstate 15 corridor. Kilroy also signed a 48K SF lease at its Del Mar Corporate Center in San Diego to fill a 127K SF lease expiration scheduled for July.

In Seattle, the company signed a 163K SF renewal and extension with Adobe at Fremont Lake Union Center. Adobe previously fully leased Kilroy’s under-construction 400K SF 100 Hooper complex in San Francisco.

And in San Francisco, the company signed multiple leases, including a new lease with Nektar Therapeutics for up to 136K SF at 360 Third St. and 375K SF to tech company Cruise Automation at 301, 333 and 345 Brannan St., according to the San Francisco Business Times.

The company purchased 301 Brannan, an 83K SF historic office property, in 2011. The 185K SF 333 Brannan ground-up LEED Platinum office was developed in 2015, and 345 Brannan is a 110K SF office Kilroy is in escrow to purchase before the end of the year. These two buildings were previously leased to Dropbox, which has fully leased Kilroy’s under-construction The Exchange in Mission Bay.

Kilroy has about 14M SF of office in Los Angeles, Orange County, San Diego, the San Francisco Bay Area and in Greater Seattle as of the end of the first quarter. It also has over 2M SF of office and production, distribution and repair space under construction.