Kilroy’s Newly Acquired Indeed Tower Awarded LEED Platinum Certification
LOS ANGELES--(BUSINESS WIRE)--Sep 9, 2021--
Kilroy Realty Corporation (NYSE: KRC, “Kilroy”) today announced that Indeed Tower in Austin, Texas, has been awarded the highest-level recognition for overall sustainability, LEED v4 Platinum certification under the Core & Shell (CS) rating system created by the U.S. Green Building Council. The achievement positions Indeed Tower as the second-largest LEED v4 CS project in the United States and the fifth-largest LEED v4 CS project globally.
Designed by Page, a global design and architecture firm, Indeed Tower, a ±730,000 square foot property occupying an entire city block, is currently Austin’s tallest office building, rising 36 stories. Kilroy’s $580 million acquisition of Indeed Tower made headlines in June of 2021 as the largest office transaction in the city’s recent history. It also marked the start of strategic expansion for the company, which currently has about ±$3 billion of development projects under construction and has been considering the Austin region for several years.
KILROY IS SETTING THE NEW STANDARD IN SUSTAINABILITY
Kilroy has amassed far-reaching recognition as North America’s leader in sustainable real estate development. The company consistently outperforms ESG benchmarks and has held top honors over the last eight years among the world’s most accredited organizations and ranking systems (ENERGY STAR, GRESB, Dow Jones Sustainability World Index, Bloomberg Gender Equality World Index, USGBC, Climate Registry, NAREIT). As pioneers in creating a more sustainable real estate industry, Kilroy became the first North American REIT to commit to neutral carbon operations and successfully achieved this ambitious goal in 2020. Furthermore, the company’s portfolio encompasses more designated Fitwel buildings than any other organization outside of the U.S. Government.
Given Kilroy’s profound commitment to reduce its portfolio’s environmental and social impacts, Indeed Tower’s sustainable design was an instrumental consideration to the company’s investment thesis.
“Indeed Tower demonstrates the successful blend of great design with ambitious sustainability goals,” said John Kilroy, Chairman and CEO of Kilroy, “As North America’s leader in sustainable real estate, the property embodies Kilroy’s unwavering commitment to resilient and sustainable workplace environments.”
INDEED TOWER’S SUSTAINABLE FEATURES
LEED is the world’s most widely applied green building rating system. LEED CS is the certification for the core and shell of the building along with the surrounding site, and Platinum is the highest level of certification a building may achieve. LEED v4 is designed to up the ante, taking a more performance-based approach to design, operations, and maintenance that calls for measurable results throughout a project’s life cycle. To date, Indeed Tower is one of 28 projects globally to earn LEED v4 Platinum CS and one of three based in the U.S.
Indeed Tower is a resilient property confirmed not only by LEED, but also by Austin Energy Green Building’s stringent 4-star rating and Fitwel’s pending 1-star certification, which recognizes the project’s strategies to advance public health and tenant well-being.
The property contains two distinct formations. The eastern portion of the building features high-performance glazing, and the western portion is clad in glass sunshades to reduce peak heat gain and glare. Meanwhile, the office floors include deliberately proportioned floor plates to maximize space planning, penetration of natural light, and views.
Other sustainable highlights at Indeed Tower include:
- 46% of site integrates open space through terraces, large urban plaza, and structured parking
- 85% rainwater management onsite
- 100% outdoor water use from non-potable sources
- Designed to reduce annual energy costs by 14%, cut down peak energy use by 21.6%, and offset 100% of core & shell power with offsite renewables
- 30% reduction of potable water through low flow plumbing fixtures and ENERGY STAR appliances, with 1.5 million gallons saved annually
- 20% reduction of embodied carbon through reuse of existing structure and other material design optimizations
- Surrounding landscape: 75% native vegetation, 25% drought-tolerant adapted vegetation alongside preservation of a heritage red oak
“As we expand within our regions and other markets, we believe it’s vitally important to grow and build upon our sustainability goals,” says Jasmine Lomax, Manager of Sustainability and Corporate Social Responsibility at Kilroy. “Kilroy is constantly researching, evolving, and sharing our programs to serve our communities better and positively impact the environments at a public scale. Of course, the end goal is to reduce or eliminate the negative impacts on the environment, but also inspire others to do the same.”
MORE ABOUT THE PROPERTY
Indeed Tower is located in the heart of Austin’s rapidly growing central business district at 200 West Sixth Street, spanning a full city block and surrounded by an abundance of urban amenities. The Class-AA trophy tower includes 21 floors of office space with panoramic views, 12 levels of above-grade parking, and five levels of below-grade parking. The project also comprises ±35,000 square feet of adaptive-reused historic Claudia Taylor Johnson post office building and 17,000 square feet of outdoor green space.
The property is currently 57% leased with office tenants, including Austin-based job search company Indeed.com, the building’s anchor tenant; Brown Advisory, Inc.; Heritage Title Company of Austin, Inc. and Vinson & Elkins, LLP.
Indeed Tower was developed by Trammell Crow Company and Principal Real Estate Investors. Additional project partners include DPR Construction (general contractor), Stantec & LandDev Consulting (civil engineer), Campbell Landscape Architecture, Ten Eyck Landscape Architects, Blum Consulting Engineers (MEP engineer), and Thornton Tomasetti (structural engineer).
Kilroy Realty Corporation (NYSE: KRC, the “company”, “Kilroy”) is a leading U.S. landlord and developer, with operations in San Diego, Greater Los Angeles, the San Francisco Bay Area, the Pacific Northwest and Austin, Texas. The company has earned global recognition for sustainability, building operations, innovation, and design. As pioneers and innovators in the creation of a more sustainable real estate industry, the company’s approach to modern business environments helps drive creativity and productivity for some of the world’s leading technology, entertainment, life science and business services companies.
Kilroy is a publicly traded real estate investment trust (“REIT”) and member of the S&P MidCap 400 Index with more than seven decades of experience developing, acquiring, and managing office, life science and mixed-use projects.
As of June 30, 2021, Kilroy’s stabilized portfolio totaled approximately 14.2 million square feet of primarily office and life science space that was 91.8% occupied and 93.6% leased. The company also had more than 1,000 residential units in Hollywood and San Diego, which had a quarterly average occupancy of 71.9%. In addition, Kilroy had seven in-process development projects with an estimated total investment of $2.9 billion, totaling approximately 3.4 million square feet of office and life science space. The office and life science space was 57% leased, which included the June commencement of the KOP 2 project.
A Leader in Sustainability and Commitment to Corporate Social Responsibility
Kilroy is listed on the Dow Jones Sustainability World Index and has been recognized by industry organizations around the world. Kilroy’s stabilized portfolio was 74% LEED certified, 42% Fitwel certified, the highest of any non-government organization, and 72% of eligible properties were ENERGY STAR certified as of June 30, 2021.
The company has been recognized by GRESB, the Global Real Estate Sustainability Benchmark, as the listed sustainability leader in the Americas for six of the last seven years. Other honors have included the National Association of Real Estate Investment Trust’s (NAREIT) Leader in the Light award for six consecutive years and ENERGY STAR Partner of the Year for eight years as well as ENERGY STAR’s highest honor of Sustained Excellence, for the past six years.
A big part of the company’s foundation is its commitment to enhancing employee growth, satisfaction and wellness while maintaining a diverse and thriving culture. For the second year in a row, the company has been named to Bloomberg’s Gender Equality Index—recognizing companies committed to supporting gender equality through policy development, representation, and transparency. More information is available at http://www.kilroyrealty.com.
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PUB: 09/09/2021 12:00 PM/DISC: 09/09/2021 12:02 PM