Kilroy Realty Signs Intuit to 365,000 Square Foot Lease in San Diego
Kilroy Realty Corporation signed Intuit to a 10-year lease for 365,000 rentable square feet at Santa Fe Summit, a four-building, 466,000 rentable square foot office campus that Kilroy plans to build on land it owns along the new State Route 56 freeway, east of Del Mar in San Diego. The monetary value of the lease was not disclosed.
Intuit will lease three of the four buildings, comprising 78 percent of the planned square footage planned for the new location, and will take occupancy when they are completed, which is scheduled for Fall, 20007. The lease also provides Intuit with the option to expand occupancy to include the fourth building. The software company, which has been a tenant of the REIT for more than seven years in San Diego, and more recently in Calabasas, Calif., plans to use the new office campus as its regional headquarters.
The Los Angeles-based REIT's San Diego portfolio will grow to more than four million square feet of office space. Intuit's existing San Diego lease with Kilroy for 212,000 square feet, in two buildings in the Governor Park submarket, expires in 2007, but includes certain extension rights, exercisable at Inuit's option.
Santa Fe Summit is located along the recently completed, 7.5 mile State Route 45 freeway that connects two major north-south arteries, Interstate 5 and Interstate 15. The road also links San Diego's residential communities and employment centers to the east with the business submarkets of Del Mar, Sorrento Mesa, and University Towne Center to the west. Kilroy owns 1.3 million square feet of existing space, and land on which the company can build approximately 143,000 square feet of additional office space, in San Diego, in addition to the Santa Fe project.
The campus style Santa Fe project will consist of low-rise buildings, and have large outdoor areas where employees can congregate, features that are attractive to high-tech companies, said Dick Moran, executive vice president and chief financial officer of Kilroy Realty. "Companies like Intuit want to attract and retain key personnel," said Moran. "They work hard, and they want to live and work in an attractive environment."
Kilroy Realty wanted to focus on San Diego since their IPO in 1997. "We saw that the area was due for a generation's worth of healthy job growth," said Moran. "We knew there was a great opportunity to provide office space there." The company will continue to be active in San Diego, Moran said. "There's more to come," he said.
Lease and Rental Agreements
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