Kilroy Realty Inks Major Lease in San Diego
- Dec 17, 2019
Kilroy Realty Corp. has signed a long-term lease with an unidentified technology company for all of the space at its 9455 Towne Centre Drive development in San Diego. The 160,400-square-foot project, called 9455 TCD, is in the University Towne Centre submarket and is scheduled for completion in mid-2020.
Kilroy is targeting LEED Platinum certification for the five-story building, which is intended to accommodate office and life sciences users through flexible floorplates of about 30,000 square feet, floor-to-floor heights of 15 to 16 feet and 600 parking spaces.
The project’s amenities include collaborative common areas, resource-efficient sustainable features, an indoor/outdoor fitness center and a roof deck. The location is surrounded by a variety of retail and entertainment options and offers easy access to major freeways.
Following the signing of this lease, the office and life sciences component of Kilroy’s $2.1 billion worth of development projects underway is now about 90 percent leased, Robert Paratte, the company’s executive vice president for leasing and business development, said in a prepared statement.
As of Sept. 30, the company’s portfolio included about 13.3 million square feet of office space in Los Angeles, San Diego, the San Francisco Bay Area and Greater Seattle. In addition, KRC has six projects totaling about 2.3 million square feet of office and life sciences space.
This isn’t the first time Kilroy has scored a mega-lease on a yet-to-be-completed project. In October 2017, the company nailed down the biggest lease in San Francisco history when Dropbox took all 736,000 square feet at The Exchange on 16th, a spec office development in the Mission Bay submarket.
In San Diego, the office market remains “strong and stable” through leasing by life sciences, defense and tech tenants, according to a third-quarter report from CBRE. Class A office vacancy has fallen to 11.5 percent, a year-over-year decrease of 70 basis points. The average asking monthly rent increased for the eighth consecutive quarter, to a current cycle high of $3.09 per square foot full service gross, again according to CBRE.