Kilroy (KRC) Picks Adobe as Anchor Tenant for 100 Hooper

Kilroy Realty CorporationKRC recently announced that it has roped in the reputed software company - Adobe - as its anchor tenant for the 100 Hooper development. Specifically, the company broke ground on 100 Hooper - a $270 million, 400,000 square foot project in the SOMA district of San Francisco - and struck a long-term lease deal with Adobe. Per this deal, the software firm would occupy 207,000 square feet or around 65% of 100 Hooper's office space.

Located in the transformative SOMA neighborhood of Showplace Square, this development project is entitled for 314,000 square feet of office as well as 86,000 square feet of Production, Distribution and Repair (PDR) space. It would comprise two, four-story buildings on a 3.3-acre site.

In the beginning, Adobe would occupy 155,000 square feet of space. However, within 15 months of completion of construction, which is slated to take place in 2018, Adobe would occupy 52,000 square feet of space. The software firm has its main San Francisco office near to the 100 Hooper site.

This development is expected to witness solid demand for space from tenants, going forward. The site boasts the thriving residential neighborhoods of Mission Bay, Potrero Hill and Dogpatch. It is also well connected by public transportation, including direct access to the Mission Bay Shuttle, connecting BART and Caltrain.

Moreover, this site serves as a key location for Kilroy Realty in a technology cluster that includes prominent names in the tech fields, like Advent, AirBnB, Pinterest, and Zynga. Also, this technology campus offers an interchange between class A office and manufacturing space and is therefore suited well to capitalize on the diverse economy and a vibrant mix of businesses in the city of San Francisco. Particularly, the PDR business adds feather to that and space creation for such activities seems a strategic fit.

Kilroy Realty has a solid expertise in in the West Coast real estate market and as of Sep 30, 2016, the company's stabilized portfolio aggregated 13.6 million square feet of office properties, positioned in the coastal regions of greater Seattle, the San Francisco Bay Area, Los Angeles, Orange County and San Diego.

Shares of Kilroy Realty were up 1.72% during Friday's session on the NYSE.



Kilroy Realty currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Investors interested in the REIT industry may consider stocks like Duke Realty Corp. DRE , EastGroup Properties EGP and Mack-Cali Realty Corp. CLI . Each of these stocks carries a Zacks Rank #2 (Buy).

Both Duke Realty and EastGroup Properties have experienced upward revisions in full-year 2016 estimates over the past two months, while Mack-Cali has long-term expected growth rate of 6.4% against the industry average of 5.8%.

Confidential from Zacks

Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>

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

DUKE REALTY CP (DRE): Free Stock Analysis Report

MACK CALI CORP (CLI): Free Stock Analysis Report

KILROY REALTY (KRC): Free Stock Analysis Report

EASTGROUP PPTYS (EGP): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.