Kilroy Realty Reveals 286,000 SF in Q2 Leasing Activity
The company has executed more than 508,000 square feet in new or renewed leases in 2020; while declaring an increase in average rent rates.
LOS ANGELES – Kilroy Realty Corp. has revealed its execution of 286,000 square feet in new or renewing leases within its stabilized portfolio, during Q2.
The company’s leasing activity encompassed properties within numerous West Coast markets, such as San Diego, Los Angeles and the San Francisco Bay area.
The executed leases comprised average rents that were up 11% on a cash basis and 30% on a GAAP basis over the prior leases. The lease agreements presented an average six-year term and 80% of the agreements were renewals.
Throughout the first six months of 2020, the company has successfully signed new or renewing leases totaling more than 508,000 square feet in its stabilized portfolio, which is currently 96% leased.
Among the company’s larger transactions included in the leasing activity was signing Scripps Health’s 119,000-square-foot lease renewal in San Diego’s Del Mar market, which was originally scheduled to expire in Q2 of 2021. The company additionally renewed a 37,000-square-foot space in Palo Alto with an 11-year term for Perkins Coie.
With the exclusion of a Q4 expiration in Long Beach in which the company is in negotiations for, Kilroy Realty Corp. currently has no expirations greater than 65,000 square feet within its stabilized portfolio throughout 2022. Throughout the next three years, the portfolio’s expirations average 4% per year, down from 6% at the beginning of 2020,
“Notwithstanding the severe business disruptions and uncertainties created by the coronavirus pandemic, we are finding continued demand among both existing and prospective tenants for well-located properties in our West Coast markets,” said John Kilroy, Kilroy Realty chairman and CEO. “These transactions not only speak to the strength of our portfolio in retaining and attracting high quality tenants, but also support the strength of our markets. We believe that our young, high quality portfolio, with its focus on flexibility, efficiency and sustainability, will continue to attract the dynamic industries that populate our West Coast markets as their workplace needs continue to evolve.”