Reporter- San Francisco Business Times
This story is part of Year in Review, which looks back at the biggest news, most influential newsmakers and top photos of 2014. Read more Year in Review articles here.
John Kilroy led his company to a string of successes — and some headaches — as the real estate investment trust became a San Francisco force this year.
With the purchases of two Flower Mart sites and Mission Bay’s Block 40, Kilroy Realty Corp. will build two of the largest office complexes in its portfolio. Those buys came in the city that the CEO says is leading the company’s growth.
Mission Bay Block 40 — which Kilroy is calling The Exchange on 16th — will feature a 680,000 square-foot office campus with a spiffy design for more tech companies. The architecture, unveiled earlier this month, is a welcome change to the neighborhood’s conventional feel.
Read our executive profile on Kilroy here.
Kilroy said that several companies are interested in leasing the entire complex, which it bought in May for $95 million.
“I can tell you by the folks that we have interested in a project, which were a range of companies not just technology, I think that will be a blockbuster,” Kilroy said on an earnings call earlier this year.
Kilroy has proven its buildings are in high demand this year. Earlier this year, Dropbox signed up to rent all of Kilroy’s 333 Brannan St. and Box took all of the Crossing/900 project in Redwood City. A couple years ago, Kilroy pre-leased its 350 Mission St. building to Salesforce.
Kilroy’s more than 3 million-square-foot office portfolio in the Bay Area went from 94.8 percent leased to 98.8 percent leased in the past year, according to its third quarter filings with the Securities and Exchange Commission. That’s the best rate of any of the developer’s other sub-markets, which includes Los Angeles, San Diego and Seattle.
Cory covers real estate and economic development.