Kilroy Realty Breaks Ground on The Exchange on 16th in the Mission Bay Submarket of San Francisco

SAN FRANCISCO--(BUSINESS WIRE)--

Kilroy Realty Corporation KRC launched its third San Francisco ground-up development project yesterday with a ground-breaking ceremony that featured Mayor Ed Lee and Tiffany Bohee, Executive Director, Office of Community Investment and Infrastructure. KRC Chairman, President and CEO John Kilroy hosted the event, which included brokers riding a fleet of red bicycles to highlight the alternative transportation-centric community, a key element behind the distinctive LEED Platinum-targeted, 700,000 square foot contemporary project.

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Incorporating eclectic elements of the surrounding environment, The Exchange on 16^th, designed by architect firm Rios Clementi Hale Design Studios, consists of two six-story and two 12-story buildings located in the vibrant and lively submarket of Mission Bay in San Francisco. The approximate $485 million project appeals to a diverse range of users, including both office and life science tenants, and offers open, efficiently designed floor plates with high ceilings, abundant natural light and views of San Francisco Bay. The four inter-connected buildings uniquely align to provide three floors of up to 95,000 square foot, horizontal super floors. The Exchange includes inspiring and abundant collaborative outdoor spaces, including two large and dynamic public lobbies, roof-top gardens and lush landscaping. The project also combines an array of amenities designed to make mobility an integral part of the work day, including a lobby bike spa and approximately 15,000 square feet of retail space.

"The Exchange is a project about creative workspace for the modern technological age. With easy freeway access, ample public transportation and numerous residential and retail options within walking or cycling distance, The Exchange sits at the intersection of high-tech industry and dynamic locale," said John Kilroy, KRC's chairman, president and CEO.

With The Exchange on 16^th now underway, KRC has four projects encompassing more than 1.6 million square feet of space, with a total estimated investment of $1.1 billion, under construction in the San Francisco Bay Area. The other three projects are 100% leased to Salesforce.com, Box, Inc. and Dropbox. The Company has 3.9 million square feet of operating properties in the San Francisco Bay Area.

About Kilroy Realty Corporation. With more than 65 years' experience owning, developing, acquiring and managing real estate assets in West Coast real estate markets, Kilroy Realty Corporation (KRC), a publicly traded real estate investment trust and member of the S&P MidCap 400 Index, is one of the region's premier landlords. 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 June 30, 2015, the company's stabilized portfolio totaled 13.1 million square feet of office properties, all located in the coastal regions of greater Seattle, the San Francisco Bay Area, Los Angeles, Orange County and San Diego. The company is recognized by GRESB as the North American leader in sustainability and was ranked first among 155 North American participants across all asset types. At the end of the second quarter, the company's properties were 45% LEED certified and 60% of eligible properties were ENERGY STAR certified. In addition, KRC had approximately 2.4 million square feet of office and mixed-use development under construction with a total estimated investment of approximately $1.5 billion. 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, 2014 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.

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