To borrow the catchphrase from that old E.F. Hutton commercial, when John Kilroy talks, people listen.
That’s partly because Kilroy, the longtime chief executive of Sawtelle-based Kilroy Realty Corp., has more than 50 years of experience in the Los Angeles real estate market.
Then there’s the fact that the busy Kilroy doesn’t often sit for interviews. So when he does make time in his schedule for a one-on-one session, as he did recently with the Business Journal, it’s worth taking note of Kilroy’s insights.
It’s not hard to understand why Kilroy is pressed for time. His company has more than 14 million square feet of West Coast commercial real estate in its portfolio in markets including Los Angeles, San Diego, San Francisco and Seattle.
In addition, Kilroy Realty is developing another 2.4 million square feet of real estate, a big chunk of which is preleased. And within the next five years, the company expects to start work on another 6 million to 9 million square feet.
Kilroy recently reported net income of $48.3 million in the third quarter, up from $38.3 million in the same quarter the previous year.
Here are five key takeaways from our conversation with Kilroy.
Westside is nearing saturation
Kilroy Realty has an extensive footprint on the Westside where it has long maintained a presence.
The company’s properties in the area include a three-building office property at 2100-2110 Colorado Ave. in Santa Monica, and the Westside Media Center at 12100, 12200 and 12312 W. Olympic Blvd. in Sawtelle.
“Westside has been a strong market for a long time, and it’s been because it has amenities and also because it’s been close to where the bosses live,” Kilroy said. “And now, as that area has become somewhat at capacity from the development standpoint, there aren’t that many more projects that can go in West L.A.”
But, Kilroy adds, there is still one location in the area with growth potential.
“Culver City is continuing to develop and expand and attract major companies and entertainment businesses,” he said.
Hollywood is still a star
“I like Hollywood,” Kilroy said. “I think Hollywood is amazing.”
Kilroy’s On Vine property, which is under construction at 1341 Vine St., made the news last year when Netflix Inc. leased 355,000 square feet in the development.
On Vine will also feature a 20-story residential building with retail space.
Kilroy also developed nearby Columbia Square, at 6121 W. Sunset Blvd., which has office, housing and retail space.
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