Kilroy Says San Francisco’s Big Blocks Are Vanishing as Bay Area Carries Its 815,000 SQFT Third Quarter
Why this matters
Commercial real estate continues to digest a multi-year reset in cost of capital. Transaction velocity is below the 2019-2021 trend but improving, cap rates have stabilized across most stabilized property types, and the bid-ask gap has narrowed materially in the past two quarters. Sponsors with permanent capital and operating platforms have an advantage in the current execution environment. San Francisco continues to clear office at the deepest discounts to 2019 basis seen in the cycle, while multifamily fundamentals have stabilized and life sciences in the Peninsula remains active. The next twelve months will continue to reward underwriting discipline and operational sophistication over balance-sheet aggression.
Editorial analysis · Real Estate Trail Editorial
On the RET wire
- The 39th San Francisco story tracked on the wire in November 2026. All San Francisco coverage →
- 6 stories mentioning Kilroy on the wire in the past 90 days. Kilroy coverage →
Computed from Real Estate Trail’s own tracked coverage
Kilroy Realty's San Francisco Bay Area portfolio climbed to 82.7 percent leased in the third quarter on a 243,000-square-foot Box renewal in Redwood City, a robotics lease in South San Francisco and a contested life s…
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