Autonomous Vehicle Company Nuro has signed a 114,000-square-foot lease at The Terra Bella in Mountain View, California, an office property owned by Kilroy Realty Corp. Serving as both an expansion and extension, the new lease more than doubles the company’s current 56,000-square-foot footprint at the property.
Located at 1290-1300 Terra Bella Avenue, The Terra Bella is tech hub of Mountain View with major companies like Google and Microsoft located nearby. The lease with Nuro brings the Terra Bella to full occupancy.
The lease is another post-pandemic win for Kilroy, which has managed to find its footing despite the destabilization and waning demand in the office market. In San Diego, the company recently signed 330,000 square feet of lease transactions, some of which will require the redevelopment of current office space into life science facilities. Tandem Diabetes Care signed an 182,000-square-foot lease with the Kilroy, DermTech signed a 96,000-square-foot lease and Sorrento Therapeutics took 52,000 square feet. Nelson Ackerly, senior vice president of Kilroy, said the three leases illustrated the quality and flexibility of the firm’s properties, particularly after initial leasing.
Last year, the company also entered the Austin market with the acquisition of Indeed Tower for $580 million. The 36-story, 730,000-square-foot office property is LEED-Platinum certified and located in the Austin’s central business district. Indeed Tower is 57% leased. Indeed.com is the largest tenant in the building, occupying 42% of the property through 2034. Kilroy plans to drive value through the strategic lease up of the property, and there is a lot to offer. The building has 30,000-square-foot floor plates and offers tenants 10,000 square feet of ground floor food and beverage space and 30,000 square feet of outdoor deck space.
Kilroy also made some strategic moves to its existing portfolio, including signing a definitive agreement to sell its 750,000-square-foot office property, The Exchange on 16th, in San Francisco, for $1.08 billion. With a purchase price equating $1,440 per square foot, the agreement is reported to be the highest per-square-foot sales price for a property in the San Francisco commercial real estate market. Located at 1800 Owens St. in San Francisco’s Mission Bay neighborhood, The Exchange was developed by Kilroy Realty in late 2015. The project’s total development cost comprised $585 million or $780 per-square-foot.