Kilroy Breaks Ground on $940MM Life Science Project in South San Francisco

Kilroy Realty, South San Francisco, Kilroy Oyster Point Phase 1, Kilroy Oyster Point Phase 2

Kilroy Oyster Point Phase 2 to be State-of-the-Art Facility in West Coast’s Most Sought After Life Science Market 

Kilroy Realty Corporation (NYSE: KRC) announced that following its successful leasing of Kilroy Oyster Point Phase 1, it started construction on the second phase of its five phase, 50-acre, three million square-foot development project in South San Francisco, the West Coast’s largest and most dynamic community of life science companies and research institutions. Kilroy Oyster Point Phase 2 (“KOP 2”) will include approximately 860,000 square feet in three buildings with a total estimated investment of $940 million.

The KOP 2 design reflects the unique amenities and outdoor space that the company is known for and that meet the needs of biotechnology and pharmaceutical tenants. The second phase will be home to numerous amenities that will serve all of the phases and include two standalone buildings housing a state-of-the-art fitness facility, conference center, and multiple food and beverage options. It will also showcase abundant outdoor meeting areas, including a large amphitheater, capitalizing on the project’s waterfront location and tenants’ desire for outdoor collaboration and recreation areas.

KRC acquired the fully entitled Oyster Point waterfront development site in 2018, advancing a long-term strategy to significantly increase its life science activity, including assembling a pipeline of strategically located land sites for future development.

In addition to Kilroy Oyster Point, KRC owns three San Diego sites fully entitled for more than 700,000 square feet of life science development, including Santa Fe Summit, along the Route 56-Corridor, and 9514 Towne Centre Drive and 4690 Executive Drive that are located in the University Towne Center submarket. With demand for high quality life science space in preferred submarkets now driving vacancy rates to historic lows, the company is readying plans for additional development starts on these sites.

“Our long-term commitment to understand and serve the needs of life science and healthcare tenants is now paying off,” said KRC Chairman and CEO John Kilroy. “The industry is experiencing accelerating growth and investment, and its potential impact on large sectors of our global economy is still in its infancy. We are in an excellent position to partner with some of the most innovative companies in the life science sector and drive our own growth at KRC for years to come.”

About Kilroy Realty Corporation: 

Kilroy Realty Corporation (NYSE: KRC, the “company”, “KRC”) is a leading West Coast landlord and developer, with a major presence in San Diego, Greater Los Angeles, the San Francisco Bay Area, and the Pacific Northwest. 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, productivity and employee retention for some of the world’s leading technology, entertainment, life science and business services companies. 

KRC 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. 

KRC’s stabilized portfolio totals approximately 14.0 million square feet of primarily office and life science space. The company also has 1,000 residential units currently in Hollywood and San Diego. In addition, as of March 31, 2021, KRC had five in-process development projects with an estimated total investment of $1.5 billion, totaling approximately 1.8 million square feet of office and life science space. The office and life science space was 88% leased.

A Leader in Sustainability and Commitment to Corporate Social Responsibility

Listed on the Dow Jones Sustainability World Index and having achieved carbon neutral operations in December of 2020, KRC has been recognized by industry organizations around the world. KRC’s stabilized portfolio was 67% LEED certified, 41% Fitwel certified, the highest of any non-government organization, and 71% of eligible properties were ENERGY STAR certified as of March 31, 2021.

The company has been recognized by GRESB, the Global Real Estate Sustainability Benchmark, as the listed sustainability leader in the Americas for six of the last seven years. Other honors have included the National Association of Real Estate Investment Trust’s (NAREIT) Leader in the Light award for six consecutive years and ENERGY STAR Partner of the Year for eight years as well as ENERGY STAR’s highest honor of Sustained Excellence, for the past six years. 

A big part of the company’s foundation is its commitment to enhancing employee growth, satisfaction and wellness while maintaining a diverse and thriving culture. For the second year in a row, the company has been named to Bloomberg’s Gender Equality Index—recognizing companies committed to supporting gender equality through policy development, representation, and transparency. 

West Coast Commercial Real Estate News