Kilroy Realty Set to Launch Construction on Additional Half Million Square Feet of Office Space in the San Francisco Bay Area

  Kilroy Realty Set to Launch Construction on Additional Half Million Square
  Feet of Office Space in the San Francisco Bay Area

 Company Breaks Ground on Crossing/900 Campus in Redwood City; Receives Green
 Light to Build Contemporary Brick and Concrete Office Project at 333 Brannan
                   Street in San Francisco’s SOMA District

Business Wire

SAN FRANCISCO -- November 11, 2013

Kilroy Realty Corporation (NYSE: KRC) will boost its Bay Area construction
pipeline to more than 1.8 million square feet with new office-project starts
in downtown Redwood City and the brick and timber commercial neighborhood of
Brannan Street in the city’s booming SOMA district. More than 1.3 million
square feet of the company’s Bay Area construction pipeline is pre-leased.

Crossing/900. KRC held a groundbreaking ceremony last week for this
two-building, mid-rise office campus located in Redwood City’s increasingly
urbanized downtown area. The new 300,000-square-foot project is located steps
away from the city’s Caltrain station and conveniently close to the two major
freeways serving the region and San Francisco International Airport. It is
also within walking distance of abundant retail, dining and entertainment
amenities as well as over a thousand residential units under construction. The
project, designed by Korth Sunseri Hagey, represents a key component in the
city’s plan to attract new businesses and residents to the downtown area and
expand its role as a major employment and residential hub in the Silicon
Valley.

Crossing/900 is a LEED Gold certified development project that will feature
large open floor plates, forward-looking designs, outdoor plaza areas,
abundant parking and up-sized base building features thereby allowing greater
densities that are highly desirable among today’s modern workforce. “The
project will serve the burgeoning knowledge-based industries in this region
that currently has very limited options for new office space, especially near
Caltrain,” said Mike Sanford, KRC’s Senior Vice President, Northern
California. KRC expects to complete construction on the project in 2015.

333 Brannan Street. Earlier this month, KRC received site approval for the
construction of a modern 170,000-square-foot, six-level, brick and concrete
office building at this 0.82-acre site located in one of San Francisco’s most
popular technology and media corridors. Designed by William McDonough, a
leading proponent of sustainable architecture, 333 Brannan Street will be a
LEED Platinum+ certified project and one of the most eco-friendly, greater
than two-story office buildings built to-date in California. The building
capitalizes on the charm of the historical area with contemporary and state of
the art sustainable features, including large, highly efficient floor plates
designed for higher density users, expansive public spaces, a panoramic roof
deck and an on-site restaurant. 333 Brannan is surrounded by dozens of cafes
and restaurants, is in close proximity to AT&T Park, Caltrain, and BART, and
is also adjacent to KRC’s 250 Brannan Street and 301 Brannan Street
properties. The company expects to complete construction on the project in
2015.

With these two starts, KRC has now expanded its Bay Area construction
portfolio by nearly 500,000 square feet. The company is also currently
building new corporate campuses for LinkedIn and Synopsys in the Silicon
Valley, and a new office tower at 350 Mission Street in downtown San Francisco
for Salesforce.com. KRC recently completed an 88,000-square-foot office
project for Audience Inc. in Mountain View.

“The transformation that has taken place over the past several years in the
way tenants use office space and the recognition that location and quality of
the environment is essential in attracting and retaining employees is
profound. Just as we have transformed our core portfolio with the assets we’ve
acquired and renovated where appropriate, we are focused on developing market
leading facilities,” said John Kilroy, Jr., KRC’s chairman, president and CEO.

About Kilroy Realty Corporation. Kilroy Realty Corporation, a member of the
S&P MidCap 400 Index, is a real estate investment trust active in major West
Coast office markets. For over 65 years, the company has owned, developed,
acquired and managed real estate assets primarily in the coastal regions of
Los Angeles, Orange County, San Diego, the San Francisco Bay Area and greater
Seattle. At September 30, 2013, the company owned 12.5 million rentable square
feet of commercial office space. More information is available at
http://www.kilroyrealty.com.

Forward-Looking Statements. This press release contains forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements are based on our current expectations, beliefs and
assumptions, and are not guarantees of future performance. Forward-looking
statements are inherently subject to uncertainties, risks, changes in
circumstances, trends and factors that are difficult to predict, many of which
are outside of our control. Accordingly, actual performance, results and
events may vary materially from those indicated in forward-looking statements,
and you should not rely on forward-looking statements as predictions of future
performance, results or events. Numerous factors could cause actual future
performance, results and events to differ materially from those indicated in
forward-looking statements, including, among others, risks associated with:
investment in real estate assets, which are illiquid; trends in the real
estate industry; significant competition, which may decrease the occupancy and
rental rates of properties; the ability to successfully complete acquisitions
and dispositions on announced terms; the ability to successfully operate
acquired properties; the availability of cash for distribution and debt
service and exposure of risk of default under debt obligations; adverse
changes to, or implementations of, applicable laws, regulations or
legislation; and the ability to successfully complete development and
redevelopment projects on schedule and within budgeted amounts. These factors
are not exhaustive. For a discussion of additional factors that could
materially adversely affect our business and financial performance, see the
factors included under the caption “Risk Factors” in our annual report on Form
10-K for the year ended December 31, 2012 and our other filings with the
Securities and Exchange Commission. All forward-looking statements are based
on information that was available, and speak only, as of the date on which
they are made. We assume no obligation to update any forward-looking statement
made in this press release that becomes untrue because of subsequent events,
new information or otherwise, except to the extent required in connection with
ongoing requirements under U.S. securities laws.

Contact:

Kilroy Realty Corporation
Tyler H. Rose
Executive Vice President
and Chief Financial Officer
(310) 481-8484
or
Mike L. Sanford
Senior Vice President, Northern California
(415) 778-5678 office
(650) 888-2228 cell
 
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