Kilroy Realty (KRC) Citi’s Miami Global Property CEO Conference 2026 summary

Opening remarks and strategic positioning

• Positioned to benefit from AI and emerging tech trends driving leasing demand, especially in West Coast and Austin markets.

• Track record of successful capital allocation across cycles, with recent opportunities in both dispositions and selective acquisitions.

• Exploring new capital allocation alternatives, including stock buybacks at attractive levels.

• Significant leasing done in the past 12–18 months, with much of it coming online in 2026–2027, providing a growth tailwind.

• Growth expected from leases signed but not yet commenced, set to drive future performance.

Market trends and leasing dynamics

• San Francisco Bay Area, the largest market, has seen the most improvement in fundamentals, with legacy tech users pulling sublease space off the market.

• Positive leasing trends in Bellevue and Seattle, with strong activity at repositioned assets like West Eighth.

• San Diego and Austin remain strong, with Del Mar and One Paseo setting rental records; Austin sees steady net rents and limited vacancy.

• Los Angeles fundamentals are firming, aided by intentional capital allocation and asset rotation into top submarkets like Beverly Hills and Century City.

• Across all markets, a flight to quality and expansionary tenant behavior are driving leasing success.

Leasing pipeline and execution

• Conversions from tours to signed leases are happening quickly, especially among AI and tech tenants.

• Spec suites are a targeted strategy, highly successful in San Francisco and San Diego, enabling rapid occupancy for tenants.

• Larger tenants are returning to the market, with many pipeline deals over 50,000 sq ft.

• Retention rates for 2026 lease expirations are strong, with 40–50% already handled, aligning with historical averages.

• Little additional retention is needed to meet guidance for 2026.