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 and mixed-use projects. As of September 30, 2020, KRC's stabilized portfolio totaled approximately 14.3 million square feet of primarily office and life science space that was 92.2% occupied and 95.5% leased. The company also had 808 residential units in Hollywood and San Diego, which had a quarterly average occupancy of 85.0% and 37.5%, respectively. In addition, KRC had seven in-process development projects with an estimated total investment of $1.9 billion, totaling approximately 2.3 million square feet of office and life science space. The office and life science space was 90% leased.
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Here are 1-3 brief analogies to describe Kilroy Realty (KRC):
- Prologis for office and life science buildings.
- Equinix for office and lab spaces.
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- Office Property Leasing: Provides premium office spaces for businesses, primarily on the West Coast.
- Life Science Property Leasing: Offers specialized laboratory and research facilities for biotechnology and pharmaceutical companies.
- Residential Property Leasing: Rents upscale multi-family apartment units in desirable urban locations.
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Kilroy Realty (symbol: KRC) is a public real estate investment trust (REIT) that owns, develops, acquires, and manages primarily office and life science properties located on the West Coast of the United States. As a landlord, its "customers" are the companies that lease space within its extensive portfolio of properties.
Kilroy Realty primarily sells its leasing services to other companies. Its major customers (tenants) are typically large corporations, often with a strong presence in the technology, life science, and media sectors. Based on recent investor disclosures, some of its significant tenants include:
- Alphabet Inc. (GOOGL)
- Amazon.com, Inc. (AMZN)
- Salesforce, Inc. (CRM)
- Netflix, Inc. (NFLX)
- Adobe Inc. (ADBE)
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Angela M. Aman, Chief Executive Officer
Angela M. Aman has served as the Chief Executive Officer and a member of the Board of Directors of Kilroy Realty since January 2024. Prior to joining Kilroy Realty, Ms. Aman was the President, Chief Financial Officer, and Treasurer at Brixmor Property Group from September 2023 to January 2024, and previously served as Executive Vice President, Chief Financial Officer, and Treasurer at Brixmor from May 2016 to September 2023. She also held Chief Financial Officer roles at Starwood Retail Partners from 2015 to 2016 and Retail Properties of America, Inc.
Jeffrey R. Kuehling, Executive Vice President, Chief Financial Officer and Treasurer
Jeffrey R. Kuehling has served as Kilroy Realty's Executive Vice President, Chief Financial Officer, and Treasurer since December 2024, and was Executive Vice President, Chief Financial Officer since August 2024, overseeing capital markets, FP&A, treasury, investor relations, and accounting. His appointment as CFO was effective on or before September 3, 2024. Before joining Kilroy Realty, Mr. Kuehling was the Senior Vice President, Corporate Strategy at Brixmor Property Group since 2018. He also served as the Director of Corporate Finance at RPT Realty and held various finance positions at Retail Properties of America, Inc. Mr. Kuehling is a Certified Public Accountant and a Chartered Financial Analyst.
Justin W. Smart, President
Justin W. Smart has served as the President of Kilroy Realty since March 2023. He previously held the role of President of Development and Construction Services since July 2022. Mr. Smart served as Executive Vice President of Development and Construction Services from January 2013 to December 2021, and as Senior Vice President of Development and Construction Services from August 2000 to December 2012.
A. Robert Paratte, Executive Vice President, Chief Leasing Officer
A. Robert Paratte is the Executive Vice President and Chief Leasing Officer at Kilroy Realty. He is also listed as Executive VP-Leasing & Business Development.
Heidi R. Roth, Executive Vice President, Chief Administrative Officer
Heidi R. Roth currently serves as Executive Vice President and Chief Administrative Officer of Kilroy Realty Corporation. She has been with the company since 1997, and most recently served as Executive Vice President and Chief Accounting Officer. Ms. Roth was appointed Senior Vice President and Controller in July 2005 and has held various other positions, including Vice President, Internal Reporting and Strategic Planning. Prior to joining Kilroy Realty, Ms. Roth was a CPA for Ernst & Young in Los Angeles. She is a Certified Public Accountant and a member of the AICPA.
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Kilroy Realty Corporation (KRC) faces several key risks, primarily stemming from the dynamic nature of the commercial real estate market and its specific geographic and tenant concentrations.
The most significant risks include:
1. Market Fluctuations and Office Leasing Uncertainty
Kilroy Realty is highly susceptible to broader market and economic conditions, including economic downturns and shifts in workplace trends such as hybrid work models. These factors can lead to increased vacancies, pressure on rental rates, and adverse impacts on property valuations. The uncertainty in the office leasing market directly affects the company's ability to maintain occupancy rates and generate rental income.
2. Rising Operational Costs and Interest Rate Increases
The company is exposed to inflationary pressures, which can escalate operating expenses, interest expenses, and construction costs. A significant portion of Kilroy Realty's debt matures in the near future, requiring refinancing at potentially higher interest rates. This could lead to increased interest expenses and put pressure on earnings and overall financial performance.
3. Geographic and Tenant Concentration Risk
Kilroy Realty's portfolio is concentrated in specific high-growth West Coast markets, including San Francisco, Los Angeles, San Diego, Seattle, and Austin. This geographic concentration exposes the company to regional economic risks, regulatory changes, and potential natural disasters specific to these areas. Furthermore, the company has a notable reliance on tenants in the San Francisco Bay Area and the tech sector, making it vulnerable to any pullback in office demand or non-renewals from these specific tenants.
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The sustained and evolving trend of remote and hybrid work models poses an emerging threat to Kilroy Realty's significant office portfolio. This trend, marked by companies re-evaluating their need for traditional office space and optimizing their physical footprints, can lead to reduced demand for large, long-term leases, increased vacancy rates, downward pressure on rental income, and potential long-term devaluation of office assets, even in prime coastal markets. While some return-to-office efforts exist, the fundamental shift in work patterns continues to evolve, creating uncertainty for the future of commercial office real estate.
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Kilroy Realty (KRC) is a prominent real estate investment trust (REIT) focused on owning, developing, acquiring, and managing premier office, life science, and mixed-use properties. The company's operations are primarily concentrated in the coastal regions of the United States, specifically Greater Los Angeles, San Diego County, the San Francisco Bay Area, and Greater Seattle, with a presence also in Austin.
Addressable Markets for Kilroy Realty's Main Products or Services:
Life Science Properties:
The global life sciences real estate market is forecasted to be worth approximately $3.75 billion in 2024, with an expectation to reach $6.76 billion by 2033, growing at a Compound Annual Growth Rate (CAGR) of 6.76%. In 2023, the United States accounted for over 60% of the global life sciences real estate footprint, with more than 65 million square feet of active life sciences space in North America.
- U.S. Life Sciences Market: As of Q3 2024, there were 16.6 million square feet of life sciences lab/R&D space under construction. The U.S. life sciences real estate market experienced positive net absorption in Q4 2024.
- San Francisco Bay Area: This region is one of the top life science clusters in the U.S. As of Q3 2025, the Bay Area's life science construction pipeline was approximately 610,000 square feet, with 37.0% preleased. Market-wide vacancy in Q3 2025 was 29.1%, and active tenant demand reached 3.1 million square feet.
- Greater Los Angeles: The Los Angeles and Orange County market boasts 12 million square feet of life science inventory. Los Angeles alone has 11.3 million square feet of life sciences lab/R&D space. As of November 2024, there was no new life science construction underway in the LA and Orange County market, and the region had a low availability rate of 3% (approximately 306,000 square feet). Tenant demand in the Greater Los Angeles region is high, with over 1 million square feet of active demand.
- San Diego: San Diego is identified as a top-tier life science cluster in the U.S.
Office Properties:
Kilroy Realty specializes in Class A office spaces.
- U.S. Office Market: As of September 2025 (Q3), the national office vacancy rate stood at 18.6%, and the office under-construction pipeline included 38.5 million square feet. The construction pipeline reached 22.5 million square feet in Q3 2025, the lowest total in the 21st century. Gross leasing volume in Q3 2025 was 52.4 million square feet.
- San Francisco Bay Area: In September 2025, San Francisco's office vacancy reached 26.7%, with asking rents averaging a little over $64 per square foot. The broader Bay Area office space had average asking rates of nearly $52 per square foot.
- Greater Los Angeles: The overall office vacancy in Los Angeles County reached 24.2% in April 2025, with overall availability exceeding 29%. Downtown Los Angeles had a vacancy of nearly 34% and availability of 37%. Los Angeles had 2.1 million square feet of office space under construction as of September 2025, and asking rents averaged $41 per square foot.
- San Diego: As of September 2025, San Diego had 1.8 million square feet of office space under construction, with asking rents averaging approximately $45 per square foot.
- Greater Seattle: In September 2025, Seattle's office market experienced a vacancy rate of about 27%.
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Kilroy Realty (KRC) is expected to drive future revenue growth over the next 2-3 years through several key strategies:
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Robust Leasing Activity and Occupancy Gains: Kilroy Realty has demonstrated strong leasing momentum, reporting its highest third quarter of leasing activity in six years with over 550,000 square feet of new and renewal leases signed. The company has also seen modest improvements in its occupancy rate, reaching 81% from 80.8% in the previous quarter. This sustained demand for its properties, particularly in its West Coast markets, is expected to translate into increased rental income as more space is leased.
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Strategic Focus on High-Growth West Coast Markets and Sectors: The company is capitalizing on accelerating momentum in its West Coast office and life science markets, with a notable resurgence in leasing activity in San Francisco, especially in the SOMA submarket, where tour activity increased by 170% year-over-year. Furthermore, strong demand from artificial intelligence (AI) and biotech companies is reshaping market demand, with Kilroy Oyster Point Phase 2 benefiting from improved sentiment in the life science sector. This targeted approach allows Kilroy to command potentially higher rents and achieve better occupancy in desirable innovation clusters.
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Contributions from Development Pipeline and Recently Completed Projects: The successful leasing and stabilization of new developments, such as Kilroy Oyster Point Phase 2, are poised to contribute to revenue growth. The company has already signed 84,000 square feet of leases for Phase 2 and anticipates exceeding its goal of 100,000 square feet of lease executions by year-end. Ongoing projects like the Flower Mart also represent future revenue potential as they progress towards completion and leasing.
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Strategic Capital Allocation and Acquisitions: Kilroy Realty is actively engaged in strategic capital recycling, including the acquisition of high-quality assets in attractive submarkets. The recent acquisition of Maple Plaza in Beverly Hills for $205 million marks its first investment in this sought-after area and aligns with the company's focus on trophy assets in high-demand locations. Such strategic investments are expected to enhance long-term cash flows and drive revenue growth through increased rental income.
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Potential for Rental Rate Increases: While some mixed signals exist, Kilroy Realty reported a GAAP rent increase of 8.2% on leases signed in 2024, excluding short-term leasing. Additionally, the company achieved a modest 90 basis points of cash same-property base rent growth in Q1 2025, driven by strong contractual rent escalations within its portfolio. Continued positive rental rate adjustments, particularly on new leases and renewals in strong markets, will serve as a driver for future revenue growth.
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Share Repurchases
- On February 27, 2024, Kilroy Realty's board of directors approved a new share repurchase program, authorizing the repurchase of up to $500.0 million of common stock. This program superseded the previous one.
- As of June 30, 2022, 4,935,826 shares remained eligible for repurchase under a share repurchase program initially approved in 2016.
- The company reported no share repurchases, representing $0 million, from July 1, 2024, to September 30, 2024.
Share Issuance
- On March 1, 2024, Kilroy Realty and its Operating Partnership entered into a sales agreement for the potential offer and sale of shares of the company's common stock.
- The number of outstanding common shares increased from 116,870,970 as of July 22, 2022, to 117,326,410 as of February 2, 2024, indicating some level of share issuance, likely through equity compensation plans or other conversions.
- As of June 30, 2022, approximately 1.1 million shares were available for grant under the Kilroy Realty 2006 Incentive Award Plan.
Inbound Investments
- No significant inbound investments by third-party strategic partners or private equity firms directly into Kilroy Realty Corporation were identified.
Outbound Investments
- In September 2025, Kilroy Realty acquired Maple Plaza, a 293,000-square-foot Class A office campus in Beverly Hills, for $205 million.
- In Q3 2024, the company acquired a 104,000 square foot, two-building campus in San Diego for $35 million, marking its first acquisition since 2021.
- Kilroy sold a four-building Silicon Valley campus for $365.0 million in Q3 2025, with proceeds contributing to funding further investments and debt reduction.
Capital Expenditures
- Kilroy Realty's historical capital expenditures were $1,798 million in 2021, $587 million in 2022, $544 million in 2023, and $501 million in 2024.
- Expected capital expenditures for 2025 are projected to be $917 million.
- The primary focus of capital expenditures includes development projects, such as an 875,000-square-foot project valued at $1.0 billion, and two life science redevelopment projects totaling 100,000 square feet with estimated costs of $80.0 million.
