Kilroy Realty Breaks Ground On 100 Hooper And Announces Adobe As Anchor Tenant

Kilroy Realty Corporation (NYSE: KRC) announced today that it broke ground on 100 Hooper, a $270 million, 400,000 square foot project located in the SOMA district of San Francisco. Adobe, one of the largest software companies in the world, has leased 207,000 square feet of the project.

100 Hooper Street is a LEED Platinum-designed, premier development project fully entitled for 314,000 square feet of office and 86,000 square feet of Production, Distribution and Repair (PDR) space in two, four-story buildings on a 3.3-acre site. The site is located in the transformative SOMA neighborhood of Showplace Square at the intersection of Hooper Street and 7th Street, just west of Interstate 280 and in easy biking and walking distance of the vibrant residential neighborhoods of Mission Bay, Potrero Hill, and Dogpatch. In addition, the site is adjacent to the California College of Arts and within walking distance of the University of California, San Francisco Mission Bay Campus.

The project is well served by public transportation, including direct access to the Mission Bay Shuttle, connecting BART and Caltrain, as well as the Central Corridor Subway. 100 Hooper is within a 15-minute walk of AT&T Park and the future Golden State Warriors Sports and Entertainment Center. It occupies a strategic location in a proven technology cluster surrounded by prominent technology companies, including Advent, AirBnB, Pinterest, salesforce.com and Zynga.

Adobe, which has its main San Francisco presence just blocks from 100 Hooper, has signed a long-term lease for 207,000 square feet, or approximately 65% of 100 Hooper's office space. Adobe will occupy 155,000 square feet initially and 52,000 square feet within 15 months of construction completion that is projected to occur in 2018.

The project will include large, efficient floor plates of approximately 50,000 square feet, an active communal plaza, inter-connecting sky-bridges, a roof top deck and views of San Francisco's skyline. The project's 86,000 square feet of PDR space is specifically designed for early-stage innovators, inventors, and craftspeople performing design, manufacturing, production and related activities.

"We are extremely pleased that Adobe, a world-class company, has decided to take a majority of the office space at 100 Hooper," said Mike Sanford, KRC's Executive Vice President, Northern California. "The interplay between class A office and manufacturing space makes 100 Hooper one of the most unique technology campuses in SOMA. The city of San Francisco embodies a diverse economy with a healthy and vibrant mix of businesses and residents. PDR businesses contribute to that diversity and are a fundamental part of what makes San Francisco such a desirable work environment."

About Kilroy Realty Corporation. With nearly 70 years' experience owning, developing, acquiring and managing real estate assets in West Coast real estate markets, Kilroy Realty Corporation (KRC), a publicly traded real estate investment trust and member of the S&P MidCap 400 Index, is one of the region's premier landlords. The company provides physical work environments that foster creativity and productivity and serves a broad roster of dynamic, innovation-driven tenants, including technology, entertainment, digital media and health care companies.

At September 30, 2016, the company's stabilized portfolio totaled 13.6 million square feet of office properties, all located in the coastal regions of greater Seattle, the San Francisco Bay Area, Los Angeles, Orange County and San Diego. The company is recognized by GRESB as the North American leader in sustainability and was ranked first among 178 North American participants across all asset types. At the end of the third quarter, the company's properties were 51% LEED certified and 72% of eligible properties were ENERGY STAR certified. In addition, KRC had one office project totaling approximately 700,000 square feet under construction and two office projects in lease-up totaling approximately 450,000 square feet. More information is available at http://www.kilroyrealty.com.

Forward-Looking Statements. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on our current expectations, beliefs and assumptions, and are not guarantees of future performance. Forward-looking statements are inherently subject to uncertainties, risks, changes in circumstances, trends and factors that are difficult to predict, many of which are outside of our control. Accordingly, actual performance, results and events may vary materially from those indicated in forward-looking statements, and you should not rely on forward-looking statements as predictions of future performance, results or events. Numerous factors could cause actual future performance, results and events to differ materially from those indicated in forward-looking statements, including, among others, risks associated with: global market and general economic conditions and their effect on our liquidity and financial conditions and those of our tenants; adverse economic or real estate conditions generally, and specifically, in the States of California and Washington; investment in our real estate assets, which are illiquid; trends in the real estate industry; defaults on or non-renewal of leases by tenants; any significant downturn in tenants' businesses; our ability to release property at or above current market rates; costs to comply with government regulations, including environmental remediations; the availability of cash for distribution and debt service and exposure to risk of default under debt obligations; increases in interest rates and our ability to manage interest rate exposure; failure of interest rate hedging contracts to perform as expected and the effectiveness of such arrangements; the availability of financing on attractive terms or at all, which may adversely impact our future interest expense and our ability to pursue development, redevelopment and acquisition opportunities and refinance existing debt; a decline in real estate asset valuations, which may limit our ability to dispose of assets at attractive prices or obtain or maintain debt financing; significant competition, which may decrease the occupancy and rental rates of properties; potential losses that may not be covered by insurance; the ability to successfully complete acquisitions and dispositions on announced terms; the ability to successfully operate acquired, developed and redeveloped properties; the ability to successfully complete development and redevelopment projects on schedule and within budgeted amounts; delays or refusals in obtaining all necessary zoning, land use and other required entitlements, governmental permits and authorizations for our development and redevelopment properties; increases in anticipated capital expenditures, tenant improvement and/or leasing costs; defaults on leases for land on which some of our properties are located; adverse changes to, or implementations of, applicable laws, regulations or legislation; risks associated with joint venture investments, including our lack of sole decision-making authority, our reliance on co-venturers' financial condition and disputes between us and our co-venturers; environmental uncertainties and risks related to natural disasters; and our ability to maintain our status as a REIT. These factors are not exhaustive. For a discussion of additional factors that could materially adversely affect our business and financial performance, see the factors included under the caption "Risk Factors" in our annual report on Form 10-K for the year ended December 31, 2015 and our other filings with the Securities and Exchange Commission. All forward-looking statements are based on information that was available, and speak only as of the date on which they are made. We assume no obligation to update any forward-looking statement made in this press release that becomes untrue because of subsequent events, new information or otherwise, except to the extent required in connection with ongoing requirements under U.S. securities laws.

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