Kilroy Realty Executes Three of San Francisco’s Largest Lease
Transactions Over Past 12 Months
LOS ANGELES--(BUSINESS WIRE)--
Kilroy Realty Corporation(NYSE:KRC) today said it has
signed a 10-year lease with Okta, Inc. (NASDAQ:OKTA) for
207,000 square feet of space at Kilroy Realty’s 100 First Street office
property in the South of Market district of San Francisco.
A leading provider of identity for the enterprise, Okta is expanding its
footprint in the city in the wake of its April 2017 initial public
offering and anticipated growth plans. Okta plans to establish its new
corporate headquarters at 100 First Street, with expected occupancy
occurring in phases, beginning in the second quarter of 2018.
Okta’s lease at 100 First Street is the most recent in a series of
record-breaking deals executed by Kilroy Realty. Over the past twelve
months, the company has signed three of San Francisco’s largest office
leases that in aggregate total approximately 1.3 million square feet. In
October of this year, Kilroy Realty signed the single largest commercial
lease in San Francisco history with Dropbox totaling 736,000 square feet
at The Exchange at 16th. And in November of 2016, the
company’s lease with Adobe, which totals 320,000 square feet, at 100
Hooper was recognized as “deal of the year” by the San Francisco
Business Times. Year to date, Kilroy Realty has signed more than 2.5
million square feet of leases throughout its stabilized and development
portfolios.
“San Francisco continues to incubate some of the most dynamic new
companies in the world and we are delighted that Okta, a thriving newly
public company, has chosen to join our roster of tenants in the city,”
said John Kilroy, the Company’s Chief Executive Officer. “I’m proud of
our team for their relentless commitment to drive our deal making
machine and deliver extraordinary leasing results with high caliber
tenants, including our recent transactions with Okta, Dropbox and Adobe.”
The success of these projects reflects Kilroy Realty’s ability to meet
the specific needs of today’s rapidly growing companies and dynamic
workforces. “Growth companies in San Francisco are looking for unique
spaces that energize and motivate their employees and are also highly
efficient. Kilroy Realty has a unique understanding of these needs, and
executes at an impressive rate to meet them,” said Chris Roeder,
International Director, JLL.
100 First Street is a 27-story, 467,000 square-foot office building
designed by Skidmore, Owings and Merrill and built in 1988. The LEED
Gold and Energy Star certified property is currently 95% leased. Okta’s
new 207,000 square foot lease will replace all of Delta Dental’s 188,000
square feet of space in the building that expires in the second quarter
of 2018 as well as include an additional 19,000 square feet.
"We're proud to call San Francisco home, and we are excited to continue
to grow our presence in the community here in partnership with Kilroy.
The new space will give the team at Okta room to scale, build and
innovate for our customers as we expand in the coming years, all under
one roof — in the heart of the city,” said Todd McKinnon, CEO and
co-founder of Okta.
About Kilroy Realty Corporation
Kilroy Realty Corporation (KRC), a publicly traded real estate
investment trust and member of the S&P MidCap 400 Index, is one of the
West Coast’s premier landlords. The company has over 70 years of
experience developing, acquiring and managing office and mixed-use real
estate assets. The company provides physical work environments that
foster creativity and productivity and serves a broad roster of dynamic,
innovation-driven tenants, including technology, entertainment, digital
media and health care companies.
At September 30, 2017, the company’s stabilized portfolio totaled
approximately 13.7 million square feet of office space located in the
coastal regions of Los Angeles, Orange County, San Diego, the San
Francisco Bay Area and Greater Seattle and 200 residential units located
in the Hollywood submarket of Los Angeles. In addition, KRC had four
projects totaling approximately 1.8 million square feet of office space,
237 residential units and 96,000 square feet of retail space under
construction.
The company has been recognized by GRESB as the North American leader in
office sustainability for the last four years and is listed in the Dow
Jones Sustainability World Index. At the end of the third quarter, the
company’s stabilized portfolio was 55% LEED certified and 73% of
eligible properties were ENERGY STAR certified. More information is
available at http://www.kilroyrealty.com.
Forward-Looking Statements
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 outside of our control. Accordingly,
actual performance, results and events may vary materially from those
indicated in the forward-looking statements, and you should not rely on
the forward-looking statements as predictions of future performance,
results or events. Numerous factors could cause actual future
performance, results and events to differ materially from those
indicated in the forward-looking statements, including, among others:
global market and general economic conditions and their effect on our
liquidity and financial conditions and those of our tenants; adverse
economic or real estate conditions generally, and specifically, in the
States of California and Washington; risks associated with our
investment in real estate assets, which are illiquid, and with trends in
the real estate industry; defaults on or non-renewal of leases by
tenants; any significant downturn in tenants’ businesses; our ability to
re-lease property at or above current market rates; costs to comply with
government regulations, including environmental remediation; the
availability of cash for distribution and debt service and exposure to
risk of default under debt obligations; increases in interest rates and
our ability to manage interest rate exposure; the availability of
financing on attractive terms or at all, which may adversely impact our
future interest expense and our ability to pursue development,
redevelopment and acquisition opportunities and refinance existing debt;
a decline in real estate asset valuations, which may limit our ability
to dispose of assets at attractive prices or obtain or maintain debt
financing, and which may result in write offs or impairment charges;
significant competition, which may decrease the occupancy and rental
rates of properties; potential losses that may not be covered by
insurance; the ability to successfully complete acquisitions and
dispositions on announced terms; the ability to successfully operate
acquired, developed and redeveloped properties; the ability to
successfully complete development and redevelopment projects on schedule
and within budgeted amounts; delays or refusals in obtaining all
necessary zoning, land use and other required entitlements, governmental
permits and authorizations for our development and redevelopment
properties; increases in anticipated capital expenditures, tenant
improvement and/or leasing costs; defaults on leases for land on which
some of our properties are located; adverse changes to, or
implementations of, applicable laws, regulations or legislation; risks
associated with joint venture investments, including our lack of sole
decision-making authority, our reliance on co-venturers’ financial
condition and disputes between us and our co-venturers; environmental
uncertainties and risks related to natural disasters; and our ability to
maintain our status as a REIT. These factors are not exhaustive and
additional factors could adversely affect our business and financial
performance. For a discussion of additional factors that could
materially adversely affect our business and financial performance, see
the factors included under the caption “Risk Factors” in our annual
report on Form 10-K for the year ended December 31, 2016 and our other
filings with the Securities and Exchange Commission. All forward-looking
statements are based on currently available information, and speak only
as of the date on which they are made. We assume no obligation to update
any forward-looking statement made in this press release that becomes
untrue because of subsequent events, new information or otherwise,
except to the extent we are required to do so in connection with our
ongoing requirements under federal securities laws.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171206006328/en/
Kilroy Realty Corporation
Tyler H. Rose
Executive Vice
President and Chief Financial Officer
(310) 481-8484
or
Michelle
Ngo
Senior Vice President and Treasurer
(310) 481-8581
Source: Kilroy Realty Corporation