Kilroy signs three new leases totaling 330,000 square feet of life sciences office redevelopments in San Diego
SAN DIEGO – (COMMERCIAL THREAD) –Kilroy Real Estate Company (NYSE: KRC, “Kilroy”) today announced three new leases totaling 330,000 square feet with publicly traded life sciences and biotechnology companies in San Diego. Tandem Diabetes Care (~ 182,000 square feet), DermTech (~ 96,000 square feet) and Sorrento Therapeutics (~ 52,000 square feet) lease transactions involve redevelopment of commercial office space into three life science facilities / state-of-the-art laboratories. and support Kilroy’s significant investment in expanding its life sciences portfolio.
Kilroy is also planning an approximately 600,000 square foot project (Santa Fe Summit) with technical / life science office flexibility on Corridor 56 to meet the growing demand for space among life science companies in San Diego.
âWe are delighted to welcome these high caliber companies to our portfolio,â said Nelson Ackerly, senior vice president of Kilroy. “Our new partnerships are a testament to the quality and flexibility of our properties in the context of their lifespan after initial rental. We invest in assets in desirable locations that can support a variety of uses.”
San Diego Life Sciences Market Strength
As one of the top three life science markets in the United States, the race between biotech and life science companies for quality real estate in San Diego is on the rise, rising from clusters traditionally concentrated in other well-established and highly sought-after fields.
âVacancy rates at Torrey Pines and University Town Center (UTC) are below 2% and 0.5% respectively, and rents are at record levels, up more than 20% year-on-year. ‘other,’ Nelson Ackerly said. âWith this record demand for state-of-the-art research and development space, life science companies have firmly set their sights on Del Mar Heights and the 56-Corridor. ”
Kilroy Realty Corporation (NYSE: KRC, the âCompanyâ, âKilroyâ) is a leading US owner and developer, with operations in San Diego, Greater Los Angeles, in the San Francisco Bay Area, in the Pacific Northwest and Austin, Texas. The company has achieved worldwide recognition for sustainability, construction operations, innovation and design. As pioneers and innovators in creating a more sustainable real estate industry, the company’s approach to modern business environments helps boost the creativity and productivity of some of the world’s largest companies in technology, entertainment, life sciences and business services.
Kilroy is a publicly traded real estate investment trust (âREITâ) and a member of the S&P MidCap 400 Index with over seven decades of experience in the development, acquisition and management of office, science and technology projects. life and mixed use.
As of June 30, 2021, Kilroy’s stabilized portfolio totaled approximately 14.2 million square feet of office and life sciences space, 91.8% occupied and 93.6% leased. The company also had more than 1,000 residential units in Hollywood and San Diego, with an average quarterly occupancy rate of 71.9%. Additionally, Kilroy had seven development projects underway with an estimated total investment of $ 2.9 billion, totaling approximately 3.4 million square feet of office and life science space. The office and life sciences space was 57% leased, which included the start of the KOP 2 project in June.
A leader in sustainable development and commitment to corporate social responsibility
Kilroy is listed on the Dow Jones Sustainability World Index and has been recognized by industry organizations around the world. Kilroy’s stabilized portfolio was 74% LEED certified, 42% Fitwel certified, the highest of any non-governmental organization, and 72% of eligible properties were ENERGY STAR certified as of June 30, 2021.
The company has been recognized by GRESB, the Global Real Estate Sustainability Benchmark, as the listed leader in sustainability in the Americas for six of the past seven years. Other accolades include the Leader in the Light award from the National Association of Real Estate Investment Trust (NAREIT) for six consecutive years and the ENERGY STAR Partner of the Year for eight years, as well as the highest ENERGY STAR honor of ‘sustained excellence over the past six years. .
A large part of the company’s foundation is its commitment to improving employee growth, satisfaction and well-being while maintaining a diverse and thriving culture. For the second year in a row, the company has been named in the Bloomberg Gender Equality Index, which recognizes companies committed to supporting gender equality through policy development, representation and transparency. More information is available at http://www.kilroyrealty.com.
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 beyond our control. Therefore, actual performance, results and events may differ materially from those indicated or implied in forward-looking statements, and you should not rely on forward-looking statements as predictions of performance, results or events. future. Many factors could cause actual performance, results and future events to differ materially from those indicated in forward-looking statements, including, but not limited to: global market and general economic conditions and their effect on our liquidity and our financial conditions and those of our tenants; unfavorable economic or real estate conditions in general, and more particularly in the States of California, Texas and Washington; risks associated with our investment in real estate assets, which are illiquid, and trends in the real estate industry; default or non-renewal of leases by tenants; any significant slowdown in tenant activities; our ability to re-let properties at current market rates or above; the costs of complying with government regulations, including environmental remediation; the availability of liquidity for the distribution and servicing of debt and exposure to the risk of default on debt obligations; increases in interest rates and our ability to manage exposure to interest rates; the availability of financing on attractive terms or not at all, which may have a negative impact on our future interest charges and our ability to pursue development, redevelopment and acquisition opportunities and to refinance existing debt; a decline in the valuations of real estate assets, which may limit our ability to sell assets at attractive prices or obtain or maintain debt financing, and which may result in write-offs or impairment charges; significant competition, which can decrease the occupancy and rental rates of properties; potential losses that may not be covered by insurance; the ability to complete acquisitions and divestitures on the terms announced; the ability to successfully operate the properties acquired, developed and redeveloped; the ability to complete development and redevelopment projects on time and within budgeted amounts; delays or denials in obtaining all required zoning, land use and other rights, government permits and authorizations required for our development and redevelopment properties; increases in planned capital expenditures, leasehold improvements and / or rental costs; defaults on land leases on which some of our properties are located; adverse changes, adoption or implementation of tax laws or other applicable laws, regulations or legislation, as well as the reactions of businesses and consumers to such changes; the risks associated with investing in joint ventures, including our lack of exclusive decision-making authority, our reliance on the financial condition of the venturers and disputes between us and our venturers; environmental uncertainties and risks associated with natural disasters; our ability to maintain our REIT status; and uncertainties about the impact of the COVID-19 pandemic, and the restrictions to prevent its spread, on our business and the economy in general. These factors are not exhaustive and other factors could adversely affect our business and financial performance. For a discussion of additional factors that could have a material adverse effect on our business and financial performance, see the factors included under âRisk Factorsâ in our Annual Report on Form 10-K for the year ended December 31. 2020 and our other documents filed with the Securities and Exchange Commission. All forward-looking statements are based on information currently available and speak only as of the dates on which they are made. We assume no obligation to update any forward-looking statement made in this press release that becomes false due to subsequent events, new information or otherwise, except to the extent that we are required to do so in connection with our requirements under federal securities laws.