West Coast Markets Continue to Outperform Says Kilroy

Kilroy Realty Corporation 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 St. and a new lease with a technology company for approximately 375,000 square feet at 301, 333 and 345 Brannan St. 333 Brannan is a 185,000-square-foot ground-up LEED Platinum office project, developed by KRC in 2015, 301 Brannan is an 83,000-square-foot historic office property that was purchased by the company in 2011 and 345 Brannan is a 110,000-square-foot office project with which KRC is in escrow to purchase later this year.

“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.”