Kilroy Realty signs 24,000 sq ft life science lease at Oyster Point

Published 17/09/2025, 14:26
Kilroy Realty signs 24,000 sq ft life science lease at Oyster Point

SAN FRANCISCO - Kilroy Realty Corporation (NYSE:KRC), a $5.28 billion market cap REIT currently trading near its 52-week high according to InvestingPro data, announced Wednesday it has executed a 24,000 square foot lease with Color at its Kilroy Oyster Point Phase 2 development in South San Francisco.

Color, a company focused on clinical genetic testing for cancer risk assessment, will establish a genomics lab at the property, with occupancy expected to begin in the second quarter of 2026. The lease was secured through Kilroy’s spec suite initiative at the property.

"We remain on track to achieve 100,000 square feet of executed leases at the project by year-end," said Angela Aman, CEO of Kilroy, in a press release statement.

Kilroy Oyster Point Phase 2 is a purpose-built life science campus consisting of three buildings totaling approximately 875,000 square feet. The development is part of a larger five-phase waterfront project spanning 50 acres.

The property features conference facilities, outdoor collaboration spaces, and a fitness center designed to attract life science tenants.

As of June 30, 2025, Kilroy’s stabilized portfolio totaled approximately 16.4 million square feet of primarily office and life science space that was 80.8% occupied and 83.5% leased. The company also owned approximately 1,000 residential units in Hollywood and San Diego with a quarterly average occupancy of 93.8%.

Kilroy Realty Corporation is a publicly traded real estate investment trust that operates in San Diego, Los Angeles, the San Francisco Bay Area, Seattle, and Austin. The company focuses on developing and managing office, life science, and mixed-use projects. With a notable 4.89% dividend yield and a 29-year track record of consistent dividend payments, Kilroy stands out among income-focused investments. Discover more detailed analysis and insights about KRC through the comprehensive Pro Research Report, available exclusively on InvestingPro.

In other recent news, Kilroy Realty Corp reported its second-quarter 2025 earnings, significantly surpassing analyst expectations. The company achieved an earnings per share (EPS) of $0.57, compared to the forecasted $0.32, resulting in a 78.13% surprise. Kilroy Realty’s revenue also exceeded projections, reaching $289.9 million against the expected $270.28 million, marking a 7.26% surprise. Meanwhile, Scotiabank upgraded Kilroy Realty’s stock rating from Sector Underperform to Sector Perform, citing increased confidence in the company’s leasing progress. The bank raised its price target to $47.00. On the other hand, Barclays downgraded Kilroy Realty from Overweight to Equalweight, maintaining a price target of $43.00 after the stock’s 25% outperformance compared to the RMZ index. Additionally, Goldman Sachs downgraded Kilroy Realty to Sell, with a price target of $33.00, due to concerns about the weak office market and anticipated declines in future growth prospects. Goldman Sachs adjusted its 2025/2026/2027 estimates for Kilroy Realty following the company’s earnings report.

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