Size, location and quality are all important measures of a real estate portfolio and its long-term value. But a real estate enterprise is judged first by the strength of its management skills. And so it should be. Effective management can significantly enhance the value of a portfolio’s assets over time, optimizing returns in strong markets, protecting them from erosion in weak markets.

Last year, Kilroy Realty capitalized on strong conditions in Southern California commercial real estate markets to improve the overall quality of the company’s portfolio and redeploy invested capital for higher returns. KRC invested $203 million to complete and stabilize nine new office properties with an aggregate 1.0 million square feet of space located in the region’s strongest submarkets. The development was financed, in part, with the disposition of $114 million of non-strategic assets totaling 957,000 square feet of space.