The economics of development in Southern California are compelling, particularly for experienced players with the capital and relationships necessary to navigate some of the toughest entitlement processes in the United States today. This is especially true in the region’s most attractive submarkets that dot the coastline from San Diego north to the Ventura County border. In these communities, extensive planning mechanisms to manage land use and enhance the local quality of life create a seemingly insatiable level of demand for both commercial and residential real estate, while erecting daunting barriers to the creation of new supply.

 

  
 

Kilroy Realty has successfully developed the majority of its current portfolio in these markets, adhering to a few basic rules. Operate only in the best submarkets. Build in digestible bites. Prelease a substantial portion of new development. Create flexible, high quality properties most likely to sustain their value over time. Over the next 12 months, KRC expects to deliver 11 new office properties encompassing more than 965,000 square feet of space for a total estimated investment of $232 million. More than half of this space is preleased or committed.