SAN DIEGO—We must embrace new technologies and methods and move on in order to stay ahead of the game, Kilroy Realty Corp.'s chairman of the board, president and CEO John B. Kilroy, Jr. told attendees of Burnham-Moores Center for Real Estate at the University of San Diego's 19^th Annual Real Estate Conference here yesterday. Kilroy gave a keynote speech dealing with the revolution in real estate led by the technology wave.

Kilroy spoke of the “brave new world” in real estate, with technology driving it. He cited a statistic from Cisco that states in 2013 global data traffic was 18 times what it was in 2000. At this point, “People expect instantaneous, free information,” he said. “Technology and entertainment have kept the US competitive globally. Technology tells us how to travel, dine, shop, learn, find entertainment, manage money and even, for some, find love.”

The game changers in technology have been social media companies including Facebook, LinkedIn, Twitter, Dropbox and Google. “Disruptive innovations are the new norm,” said Kilroy. “We have to adapt new technologies, embrace them and move on. The speed of everything will continue to accelerate, and technological innovation will accelerate faster than you can possibly believe.”

Millennials have embraced technology wholeheartedly, Kilroy added, initiating a change in culture that includes giving back, team building and collaboration. These changes have informed the new wave of office development that Kilroy's firm has embraced, and they will continue to inform how we live. “Wearable technology is about to come out. It will be a huge, multi-billion-dollar industry. The tech being created is product that allows us to live our lives, get entertainment and get something useful. It's a wakeup call for every city.”

Kilroy also talked about how corporations used to be about having large, intimidating buildings that make the people who walked into them feel little, but it's totally different today. “The workplace has changed. There's a culture of collaboration and meritocracy. It's about creating energetic and vibrant workplaces where people share ideas.”

One problem that exists in the office sector is existing old office stock that may not be able to accommodate the new wave of office design. “The new offices are being built for 10 or 12 people per 1,000 square feet,” said Kilroy. “This is affecting floor loads, bathrooms, utilities. If a building can't handle it, you have a wasting asset.” The only answer to this is redevelopment.

Kilroy spoke of the importance of Millennials, who “want to live in cities or urbanesque environments. They want to rent, and they want full-time activities in their apartment buildings. They want breakout areas, and they want to be best-dressed in their own style. It's the Steve Jobs and Mark Zuckerberg phenomenon: dress like the boss, but the boss is wearing hoodies and ripped jeans.”

This cohort is also showing less interest in driving and a profound interest in sustainability, from public transportation and bicycles over cars, to green commitments from their employers. “Employers need LEED-certified buildings to recruit Millennial talent. They need lots of amenities like rooftop decks, bike storage and herb gardens.”

Kilroy also spoke of the six projects his firm currently has under construction, a total estimated investment of $450 million to build 680,000 square feet of creative office and retail over the next two years, including One Paseo in Del Mar and the Exchange on 16^th St. in San Francisco. And he cited US centers of innovation including Austin, Boston, Texas and Colorado, as well as cities competing in the global race: San Francisco, the Silicon Valley, Seattle, L.A. and New York. In San Diego, meanwhile, the tech force is declining, which is cause for concern for stakeholders in this market.