Kilroy Realty Continues Strong Fourth Quarter Leasing Momentum

Kilroy Realty Corporation (NYSE: KRC, “Kilroy”) today announced that it has signed approximately 520,000 square feet of new or renewing leases quarter to date, including approximately 400,000 square feet signed in November. Included in our November activity are two Bay Area leases signed for a combined 210,000 square feet to a Fortune 500 technology company and a highly regarded international law firm.

Year-to-date office and life science leasing now totals approximately 1.3 million square feet, of which more than 50% are with new tenants. Average rents are approximately flat on a cash basis and up 15% on a GAAP basis over the prior leases. Catalyzed by a strong finish to the year, Kilroy is entering 2024 with average lease expirations of approximately 8.5% annually through 2026.

“Despite the volatile economic backdrop of 2023, Kilroy continues to execute while building upon and forging new tenant relationships with the most innovative companies in the world,” said John Kilroy, Chairman and CEO of Kilroy. “Our fourth quarter leasing activity marks the highest quarterly volume in 2023 and is a testament to the demand that exists for high quality work environments coupled with the capabilities of our dynamic team.”

About Kilroy Realty Corporation

Kilroy Realty Corporation (NYSE: KRC, the “company”, “Kilroy”) is a leading U.S. landlord and developer, with operations in San Diego, Greater Los Angeles, the San Francisco Bay Area, the Pacific Northwest and Austin, Texas. The company has earned global recognition for sustainability, building operations, innovation and design. As pioneers and innovators in the creation of a more sustainable real estate industry, the company’s approach to modern business environments helps drive creativity and productivity for some of the world’s leading technology, entertainment, life science and business services companies.

The company is a publicly traded real estate investment trust (“REIT”) and member of the S&P MidCap 400 Index with more than seven decades of experience developing, acquiring and managing office, life science and mixed-use projects.

As of September 30, 2023, Kilroy’s stabilized portfolio totaled approximately 16.3 million square feet of primarily office and life science space that was 86.2% occupied and 87.5% leased. The company also had more than 1,000 residential units in Hollywood and San Diego, which had a quarterly average occupancy of 92.7%. In addition, the company had two in-process life science redevelopment projects with total estimated redevelopment costs of $80.0 million, totaling approximately 100,000 square feet, and two in-process development projects with an estimated total investment of $1.6 billion, totaling approximately 1.6 million square feet of office and life science space. The in-process development and redevelopment office and life science space is 32% leased.