Kilroy Realty Corporation KRC announced that it has fully preleased 736,000 square feet of office space at its San Francisco-based property, The Exchange, to Dropbox. This makes the lease the largest single Class A commercial deal executed in San Francisco.
Dropbox has signed a 15-year lease for creative office space in Kilroy's four-building project, The Exchange, which is currently under construction. The lease is in line with Dropbox' growing need for additional space.
Per the above-mentioned lease, Dropbox will move-in in three phases, from the fourth quarter of 2018 to the fourth quarter of 2019. In addition, Kilroy's focus on developing creative and collaborative space suits the tenant's need of fostering a dynamic work environment.
The Exchange is Kilroy's $570-million office project situated on the 16th Street Corridor alongside the 280 Freeway. This 750,000-square-foot project is slated to offer 736,000 square feet of office space and 14,000 square feet of retail area. The project is located in the vibrant neighborhood of Mission Bay that has a well balanced mix of residential and retail space.
The project is located near Muni's T-Line, making it easily accessible to the residential vicinities of Dogpatch, the Mission District and Potrero Hill. This convenient location of the project is anticipated to attract residential and retail companies.
Further, The Exchange is set to offer bike plazas along with a strong presence of retail and other amenities.
Kilroy's efforts to develop innovative and state-of-the-art work space have enabled the company to fortify its position in the office real estate space. Moreover, constructing properties in prime locations elevate demand for the company's projects.
A persistent downward trend in estimate revisions for third-quarter 2017 has resulted in a Zacks Rank #4 (Sell) for the stock. Also, shares of Kilroy have lost 2.1% year to date, underperforming 4.6% growth recorded by the industry
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Better-ranked stocks in the real estate investment trust (REIT) space include Sabra Healthcare REIT, Inc. SBRA
, DCT Industrial Trust DCT
and CoreSite Realty Corporation COR
. While Sabra Healthcare sports a Zacks Rank of 1 (Strong Buy), DCT Industrial and CoreSite Realty carry a Zacks Rank of 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Sabra Healthcare's FFO per share estimates for the current year climbed 3.4% to $2.43 in the past month.
DCT Industrial's 2017 FFO per share estimates remained unchanged at $2.43 during the same time period.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sabra Healthcare REIT, Inc. (SBRA): Free Stock Analysis Report CoreSite Realty Corporation (COR): Free Stock Analysis Report Kilroy Realty Corporation (KRC): Free Stock Analysis Report DCT Industrial Trust Inc (DCT): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research