NEWPORT BEACH, California (April 18, 2024) – KBS, one of the largest owners and operators of premier commercial real estate buildings in the nation, announces that in 2023, during a time of economic challeges for the commercial real estate industry, the company signed more than 2 million square feet in leasing agreements at its office assets across the country.

The firm also achieved a sizeable tenant move-in, a property disposition, refinancing, sustainability recognition, along with the completion of significant renovations at its client portfolio of assets throughout 2023, according to Marc DeLuca, CEO and regional president, Eastern U.S., for KBS.

the year – which bodes well for 2024.”

“While 2023 presented many challenges to office property owners and operators, we continue to see a renewed interest in post-pandemic leasing,” says DeLuca. “The office sector experienced a surge in leasing at the end of

“There’s a clear bifurcation in the office sector with 80% of the occupancy losses between Q1 2020 and Q4 2022 in older buildings in downtown submarkets with relatively high crime rates and few surrounding amenities, while demand for Class A properties in many of the key markets in which KBS invests has stabilized and is growing,” notes DeLuca.

KBS signed over 400 new leases, expansions and renewals at office assets in 2023. The majority of these were for space at Class A office properties. Some highlights include:

  • 49,135 square feet at Carillon, a 24-story, 488,277 square-foot trophy office building located in uptown Charlotte, North Carolina
  • A new 44,258 square-foot lease with Wells Fargo at City View, bringing the 221,373 square-foot Class A office building in San Antonio, Texas to 96% leased.
  • 38,739 square feet at 222 Main, a 433,346 square-foot smart building in Salt Lake City, Utah
  • 38,501 square feet at Providence Towers, a 524,143 square-foot, LEED Gold-certified office building in Dallas, Texas
  • 35,940 square feet at 3811 Turtle Creek, a 21-story, 300,961 square-foot office tower in Dallas, Texas
  • 24,280 square feet at Millrock Park, a four-building, 494,289 square-foot office park in Cottonwood Heights, one of the most desirable submarkets of Salt Lake City, Utah
  • 15,187 square feet at 60 South Sixth, a 40-story, 710,332 square-foot office tower and retail complex in downtown Minneapolis, Minnesota

In addition, KBS welcomed a major tenant, leading Midwest law firm Fredrikson & Byron, P.A., which moved into an approximately 158,000 square-foot space at 60 South Sixth last year.

“Tenants are reimaging how they use office space, and these leasing transactions are evidence that superior office space in excellent locations is in demand,” notes DeLuca.

KBS also finalized a number of substantial financial transactions in 2023. The firm sold Union Bank Plaza, a 675,945 square-foot, Class A mixed-use property in downtown Los Angeles, California, to Waterbridge Capital for $104 million, which was the second largest transaction in Downtown Los Angeles for 2023. In 2024, KBS has already completed four successful dispositions. For example, in February, KBS completed the disposition of the McEwen Building in Nashville, Tennessee for $48 million. In 2023, the firm also successfully refinanced multiple loans for Class A office properties in Chicago, Salt Lake City, San Antonio, Texas, and Washington, D.C.

Further, in 2023 KBS completed multimillion dollar renovations at several assets in its client portfolio. For example, completing an extensive curtain wall restoration at Accenture Tower, an award-winning, 1.46-million-square-foot, 42-story Class A office and retail property Chicago, Illinois is now nearly 100% leased. The property, situated over the Ogilvie Transportation Center, which serves 200,000 suburban rail commuters daily, also benefited from Clear Channel Outdoor Americas’ completion of a digital makeover that included installing impactful new digital media displays at the transit hub.

Lastly, in 2023 KBS demonstrated its ongoing dedication to sustainability and transparency by producing its first annual Sustainability Report. The firm also received a Green Star designation in the 2023 GRESB Real Estate Assessment, its first year participating. Locally, the company was recognized by the Orange County Business Journal as one of the region’s Companies that Care.

“KBS is dedicated to doing its part to help make the world a better place,” says DeLuca. “Our commitment to ESG through the work of our recently established Green Team represents some of our efforts to give back. We look forward to continuing these programs and providing high-quality Class A office spaces and amenities in 2024.”