Kelryi refers to fading profits, as the size of the tenants shrinks on the West Coast

The company stated on Tuesday that the profits of Kelry Realiti in the last quarter were fair to reach the Mediterranean, as the work of office science and life sciences declined through its 17.1 million square feet in San Francisco, Los Angeles, Sayattle and San Diego.

Kilroy’s money from operations amounted to $ 122.3 million, or $ 1.02 per loop in the first quarter, a decrease of 8.5 percent from 133.7 million dollars, or $ 1.11 during the same period last year.

But Keelawi is the CEO Angela Aman She said that she still has a belief in San Francisco, where the boom of artificial intelligence enhances the leasing activity, and Mayor Daniel Lori has allied with the Crusaders to return to the office By proposing the work of the city’s employees, at least four days a week.

“We are very optimistic about what we see in the city of San Francisco from the leasing point of view, and from the point of view of safety and vitality, especially during the past few months,” Aman told investors in a phone call after issuing profits.

The APLITUDE 57,560 square feet is renewed on Kilroy 201 Third Street in downtown San Francisco, the largest Kilroy rental contract with any tenant in the city since 2019, according to Aman.

In Seattle, Databricks expanded its artificial intelligence to Kilroy’s West8, a 539226 square desk tower in 2001 Street 8, which previously witnessed the occupancy decreased to only 20 percent when Amazon left the property in 2023.

“We have many transactions at the present time,” Robert Parat, the chief leasing employee in Kelroy, told a phone conference. “I think it will be a matter of time before you play.”

How will these negotiations play a very important matter to improve occupancy through the Kilroy office portfolio and life sciences, which decreased to 81.4 percent of 83.9 percent at the end of the fourth quarter of 2024, and 84.2 percent at the same time last year.

Although the company signed a lease of 248,000 square feet in the last quarter, the tenants evacuated 216,000 square feet during the same period, Kelroy said.

Among those who shrunk California Biotech Company Dermtech, which reduced its employees by more than half when she applied for bankruptcy last year, and in April, she moved from 81,000 square feet in Kilwai 12340 El Camino Real, a 370,144 square offices in San Diego.

It is possible that 23andme, which is also subject to restructuring through Chapter 11, is possible at a distance of 65,000 square feet at 349 Oyster Point Boulevard in southern San Francisco, according to Geoffry Kohing, the financial manager of Kilroy. Kuehling said that the movement will occur in the second quarter of 2025, and could continue to suppress the occupancy through the entire company’s portfolio.

“It is clear, if this happens in the quarter, you will see that the occupancy (in the portfolio) is moving down a little,” said Kuehling. “When we think about the third quarter, I just want to remind everyone that we have two development characteristics that will enter into the stable group, which will affect the occupancy.”

These two projects are 4400 square feet 4400 Bohannon Drive in San Francisco and an area of ​​4690 square feet 4690 in San Diego, according to the Kilroy General report.

Company Dimulately stopped the development pipeline last yearlike TRD I mentioned earlier. Executive officials said in 2025, and this will not change in 2025.

In fact, Kelroe is looking to bring about 150 million dollars by delivering many development sites during the next year. The chief investment official, Eliot Trincher, told investors that the company is in a contract to sell part of the Santa Summit in Fedan 22 acres in San Diego for $ 38 million. It is not clear who is planning to buy the site.

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