Los Angeles-based Kilroy Realty Corp. has signed a 12-year lease with a publicly traded multinational software company for 100,850 square feet of office space at 250 Brannan St., located in San Francisco’s South of Market district. The prior lease was scheduled to expire in 2019.
Acquired by KRC in 2011, 250 Brannan St. is a three-story, historic brick and timber building located just blocks away from AT&T Stadium, the soon-to-be expanded Muni Metro T Third Line and some of San Francisco’s most renowned restaurants, shops and cultural institutions.
KRC’s Brannan Street properties have continued to generate strong tenant demand. In May, the company executed a 375,000 square foot transaction with Cruise Automation encompassing 301, 333 and the to-be-acquired 345 Brannan.
“There is huge demand placed on premium quality creative space by San Francisco’s technology tenants. Kilroy’s Brannan Street portfolio represents the best the market has to offer, as evidenced by this recent leasing activity,” said Mike Brown, Executive Managing Director at Newmark Cornish & Carey, who represented KRC at 250 Brannan. “Rent was up significantly over the prior lease, which bodes extremely well for KRC’s Flower Mart project that will be the transformative highlight of the Central SOMA Redevelopment Plan and is only three blocks from the Brannan Street properties.”
The lease adds to the tremendous leasing activity KRC has completed year to date, which totals more than 1.9 million square feet of space. The declining availability of space and rapid execution of leases underscore the dynamics of high-growth companies continuing to cluster and expand in innovative centers adjacent to transportation and amenities and using the work environment to retain and attract the modern workforce.