Brian T. Galligan, vice president of asset management for the San Diego and Orange County regions of Kilroy Realty Corp. (NYSE: KRC), is about to lead the REIT into the mixed-use arena in San Diego County.
“Kilroy remains bullish on the San Diego market due to the broad variety of industry types that exist here. We will continue to invest in the region. In fact we are working on the One Paseo project in Carmel Valley, which will be, at $600 million plus, the largest privately funded mixed-use development project in the city,” Galligan said. “We believe One Paseo will be a great live, work and play amenity for the neighborhood and a landmark project for San Diego.”
Galligan is responsible for overseeing the day-to-day operations of Kilroy Realty's San Diego properties, which total more than 5 million square feet of primarily office properties generally located within the Del Mar Heights, Sorrento Mesa, University Towne Centre, Sabre Springs and Rancho Bernardo markets.
Galligan is a 25-year industry veteran. Prior to joining KRC, Galligan was director of asset services at Cushman & Wakefield of California Inc. in the Asset Services division, where he was directly responsible for the profitability of Orange County and San Diego operations as well as buildings in San Francisco and Las Vegas.
Prior to that, Galligan was the general manager for Shimizu Land Corp., where he was responsible for all company activities, including development and asset management functions within San Diego County on projects such as One America Plaza in downtown San Diego and the Aventine development in the University Towne Centre area.
Galligan has been an active member of the Building Owners and Managers Association for more than 20 years and currently serves on the NAIOP San Diego board of directors.
Galligan explains that Kilroy employs 40 people here in San Diego directly and more than 100 additional individuals work with the REIT in this market through its service partner/vendors.
“Our goal is to take good care of our tenant base and be the premier commercial property operator in the region,” Galligan added.
Galligan said that Kilroy’s stabilized portfolio in San Diego County has an occupancy exceeding 92 percent.
“Given the quality of our assets and improving market conditions we have been growing rents and growing our overall portfolio occupancy over the course of the year,” Galligan said.
While Kilroy has slightly decreased the amount of stabilized square footage it owns in San Diego County in recent months, with more than 5 million square feet here, the REIT still owns more property locally than it does in any other market, including Los Angeles.
Kilroy’s earnings saw a notable decline in the third quarter when compared to July-September of 2011 because of certain charges, but still fared significantly better during the first three quarters of the year when compared to the like period a year earlier.
For the quarter ended Sept. 30, Kilroy posted $2.52 million in net income on $104.29 million in revenues — compared to $14.29 million in net income on $86.39 million in revenues for the like quarter a year earlier.
For the first nine months of the year, Kilroy recorded $83.47 million in net income on $293.8 million in revenues — compared to $22.63 million in net income on $243.37 million in revenues for the like period in 2011.