Kilroy Realty Corporation added 300,000 square feet of new leases to its Oyster Point Phase 2 life‑science campus in South San Francisco, bringing total leased space to 384,000 square feet and a 44 % occupancy rate.
The new commitments include a 16.5‑year lease from the University of California, San Francisco for 280,000 square feet dedicated to pharmacy, clinical laboratory, pathology, and genetics operations, and a 20,000‑square‑foot lease from a genomic sequencing foundry that will occupy space immediately. UCSF’s occupancy is slated to begin in the fourth quarter of 2027, while the foundry will move in as soon as the lease takes effect.
Phase 2 of the Oyster Point development spans roughly 875,000 square feet across three buildings, so the latest leases now cover about 44 % of the total project. The addition brings the campus’s leased rate to a level that matches the high‑credit, long‑term tenant mix that has become a hallmark of Kilroy’s life‑science portfolio.
Kilroy’s stabilized portfolio was 81 % occupied and 83.3 % leased as of September 30 2025, and the company has maintained a dividend payment streak for 29 consecutive years. The new leases reinforce the company’s position in a market that continues to see strong demand for high‑quality, sustainable lab and research space, and they underscore Kilroy’s commitment to carbon‑neutral operations and LEED, Fitwell, and ENERGY STAR certifications.
CEO Angela Aman said the new commitments “demonstrate the resilience of the life‑science market and the attractiveness of Kilroy’s world‑class facilities.” She added that the leasing activity in 2025 was a “robust year of leasing activity at the campus,” reflecting improving sentiment in the sector and growing demand for advanced research environments.
While the leasing announcement itself did not trigger a sharp market reaction, analysts noted that KeyBanc’s recent downgrade of Kilroy to “Sector Weight” from “Overweight” was driven by the company’s valuation relative to peers, rather than the leasing activity. The downgrade highlights that investors are weighing Kilroy’s strong execution against a valuation that has risen in tandem with its outperformance.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.