Kilroy Is Committed to Sustainable Buildings

Kilroy Realty Corp. is committed to sustainable buildings. Alongside setting the standard for innovative office development on the West Coast, the developer has also set some aggressive sustainability goals, including plans to be carbon neutral by 2020 and a commitment to invest in buildings that have only LEED Gold certification or higher. At Allen Matkins annual View From the Top conference at the Beverly Hilton this year, John Kilroy, chairman of the board, president and CEO at Kilroy Realty Corp., explained why sustainability in real estate is so important.

At the event, which included a one-on-one interview with Kilroy and an overview of the firm’s latest projects, Kilroy said that the firm isn’t considering any non-Gold or Platinum buildings, and in fact, he sign off is required to move forward on one. While it is working toward hitting its carbon neutral goal this year, the company is already ranked first in most environmental categories. Kilroy’s commitment to environmentalism serves a dual purpose. The first, of course, is in combating climate change. The second is building a competitive portfolio for the future. Today, funds are focused on real estate quality and new product.

In addition to talking about the company’s environmental efforts, Kilroy also talked about market trends. His biggest concern isn’t about an upcoming downturn but rater about preparing for the long-term. Today, a significant portion of the real estate community has not worked through a recession, and even more have only transacted in a low interest rate environment. “We are in an environment where there is money everywhere, and it is so easy, but that will change,” he said. “It might not change soon, but it will change, and when it does, you want to be the guy with the money in your pocket.”

That was Kilroy’s biggest piece of advice to the audience: be the person with money in your pocket. Not every deal is going to be a big win, but the deals should set you up for long-term growth. “You aren’t going to have a big winner all of the time, but can you position yourself in the market to gain market share and make money over time. I think in the long term and the short term,” said Kilroy.