Okta Signs Corporate HQ Lease in San Francisco
- Dec 08, 2017
Kilroy Realty Corp. signed technology firm Okta Inc. to a 207,000-square-foot lease at its 100 First St. office property, filling the impending gap and adding to the space Delta Dental will leave in the 467,000-square-foot building.
Okta’s 10-year-lease agreement at 100 First encompasses the 188,000 square feet that Delta Dental will leave behind in the second quarter of 2018, and an additional 19,000 square feet. The Skidmore, Owings and Merrill-designed building, located in the South of Market district, will serve as the company’s new corporate headquarters. “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,” Todd McKinnon, CEO & co-founder of Okta, said in a prepared statement.
With Okta’s agreement, 100 First is 95 percent leased. The tech company will set up shop in its new digs at the 27-story building in phases, commencing in the second quarter of 2018.
SIZZLING IN SAN FRANCISCO
Kilroy, which has a portfolio of 13.7 million square feet of office space in the coastal regions off the West Coast, has been experiencing great success over the last year with its San Francisco assets, both existing and under-development. In October, Dropbox inked a 15-year lease for Kilroy’s entire 750,000-squre-foot The Exchange on 16th office project, marking the largest single office lease transaction in San Francisco history. As noted during Kilroy’s third quarter earnings conference call on October 26, approximately 84 percent of the 5.4 million square feet of office product the company is scheduled to bring online over the next few years has already been claimed. Kilroy isn’t exactly surprised by the accomplishments.
“I want to take a moment to remind everyone on this call that we were early to identify trends in the San Francisco market back in 2009, 2010,” John Kilroy, president & CEO of Kilroy Realty Corp., said during the REIT’s earnings call. “The moves that we made…early through strategic acquisitions, closely followed by securing and entitling key development sites, have proven to be very profitable for investors.”
Photo via Google Street View