Kilroy Realty Executes Three of San Francisco’s Largest Lease Transactions Over Past 12 Months
LOS ANGELES-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.