Kilroy Realty Corp KRC

Kilroy’s focus on technology and life science market clusters should benefit the firm in the long run as we expect buoyant growth in these areas. In addition to this, the company’s high-quality office buildings with good amenities should benefit from the flight to quality trend.

Employees are still hesitant in returning to the office as physical building occupancy rates remain at approximately 50%-55% of the prepandemic level. Technology-enabled hybrid workplace solutions can materially reduce per capita office space utilization, leading to lower demand for office space.