Right up there. I can't see you, but I hope you can see me. Or actually, that's probably not the thing you wanna look at. I just think it's wonderful for us all. The last time we were in San Francisco, I think, was four or five years ago. We had a big event at our innovation center, and little did we ever think at that time that we would have the problems that the country's had and the world's had with disease and so forth. Now we're back together, and I think what you're gonna see as you are in the city these next couple of days at Nareit, that San Francisco is coming back. I'm not saying it's coming back at a million miles an hour, but it's coming back. For those of you who don't have a lunch commitment tomorrow, Mayor Breed will be speaking at the Nareit lunch. I'll be introducing her, and she's gonna give some comments and perspective from City Hall. With that, we have a little sizzle reel, as Shannon calls it, so let's do that. All right. Thank you, Shannon, and thank you, team. By the way, about two days ago, this was a warehouse, and I wanna thank Shannon Kanuk and her the marketing team and all the folks that support her to make this event possible. I hope you enjoy yourself. This is a spectacular day. Just a little bit about strategy. I think all of you know that we take a lot of pride in what we do, and as you can see by this, little movie we just watched, it's all about activation, activating spaces for people. We're humans. We like to be around people. We like outside spaces. We like beauty. We like the ability to congregate both inside and outside, meetings inside, outside. Strategically, as a company, we've made a decision years ago that we wanted to separate ourselves and differentiate ourselves from our competitors, and I think we're doing that in scale, and that's gonna be a theme that you see all along today. The real estate that we have. What happened there? Shannon? Was that me? Did I touch something? Okay. We're rebooting. Excuse me. Do I... Okay, so I'm gonna do a little Irish dance for you. Well, I was telling you about the technology. If man makes it, man can break it. Just while we're waiting for that to start, I'm gonna go through our strategy, kinda capital allocation and a few other things. Talk a little bit about our people. Then Eliott Trencher is gonna go through a couple of slides with regard to the metrics and some of the things we're pretty proud of and we think helps to differentiate Kilroy. This is not gonna be a big presentation, a big slideshow. We just had our 3Q conference call. We're gonna be meeting with a lot of you at Nareit. We will have a Q&A at the end. We have today something that I think is gonna be really great. We have an individual, who I won't introduce because somebody else is gonna introduce him, but he's responsible for more companies moving into Austin than any other single human being on Earth, and you're gonna love hearing from him. We've got a couple of great panels, one on Austin and another one on KOP, Kilroy Oyster Point, and some of the people that are involved in leasing that and designing it and implementing it and executing it. You're gonna learn a lot about KOP, and then we'll have the Q&A. Okay. You've seen this slide before. It doesn't go back to 1997 like it used to. There's too many years that have elapsed. The screen's not big enough. I think what you see here, and I made reference to this in a recent quarterly conference call, there's a time to buy, and there's a time to sell, and there's a time to develop, and there's a time to be patient and get ready for the next group of opportunities, like we did back in 2008, 2009, and 2010. This shows basically that strategy graphically. Landscape of today's environment, obviously there's uncertainty. I'm not gonna get into all the politics. Maybe there'll be a question, I'll answer that, but I think everybody knows, I've always said on the macroeconomic side, that's what scares me the most over the years. I think I can say that I can't really see too much gray hair out there with the lights in my eyes. I can see a couple people. Gary, thank God you're here. I have more gray hair and more years than most of you, maybe any two of you combined. I've been through these cycles before. They are all different, but they all have a similarity. They do end. When they do, you have to be positioned for opportunity. Today, we have a much different kind of workforce. We have computers, we have cell phones, everybody can work that way. The office configurations have changed and whatnot. Yet the office has become ever more important, at least to the tech companies and some of the others we work with, because COVID has shown that you need to bring people together. They wanna be together, they wanna collaborate. Ideas are generally best achieved or thought about when people are working together and in front of one another. Political initiatives, well, you know, we can always talk about that. I get to do the really fun part, and Eliott's gonna do all the math stuff. We had the little or the little video, but these are some of the slides that show projects that we've developed mostly in this cycle, meaning from 2012 to now. This is Netflix on the left. Netflix on Vine, that's their new film campus down in Hollywood. Then you see the 350 Mission Street up in the upper right. In the lower right is, I can't say the name of a company, it's a fruit, and it's their global AI headquarters. It's up in Seattle. Of course, our residential, we'll have a slide on that in a minute, but this shows the tower there [audio distortion] on Vine. Always about people. Always about people. When you're marketing it, you're gonna talk to two of the top brokers in the area, well, here and also in Austin. I think they'll substantiate that people wanna be in great spaces that are amenitized, where they make their life simpler. There's gotta be a reason. You gotta have a reward for your commute. Athleticism and wellness and whatnot, obviously, has become a huge focus for Kilroy. Rather than have the little gyms that some people go to, and they always go bankrupt, we have a lot of inside, outside things going on. We bring in different groups that are bringing in different kinds of whether it's taekwondo or meditation or whatever it might be, and this shows a couple examples of that. Collaborative outside space. You've heard me talk and others from Kilroy talk about this forever. We do it everywhere, inside, outside, terraces, and you're gonna just see more and more of that as we go along. Immersive retail. Whether we're not known for retail. We don't do retail centers. We do them when they're part of a mixed-use project like down at One Paseo. But this gives. These are all pictures of reality, okay? That upper right-hand, you're gonna have an opportunity to see it. It's called The Anecdote. It's the restaurant that's over in Phase 1 of Kilroy Oyster Point. Think of that level of quality, and it's interesting. It's fun. You wanna go there. It's not the old little, microwave thing that was in office buildings forever. Vibrant residential communities. These are the kinda rooftop terraces and special areas within our residential projects. You'll hear about residential. Eliott will probably talk about that, but we're crushing it. This is the last slide I'm gonna talk about. You cannot, in anything, whether it's sport or a company, unless you're a one-person sailor on a dinghy or a one-person company, you cannot do it alone. Everything is about the people you surround yourself with, the people you collaborate with and bounce ideas off of, the people that keep you in check, the people that help you through tough times. This is just a small group of. It's illustrative of Kilroy, and you'll notice the guy that is on the second to last row, second from right. We had an Elon Musk in there originally, but we thought that might be a little litigious, so we put Warren in just for a fun thing. I'm very prideful of our team, and we have a terrific group. I don't know how they all got so smart, because all of them are a lot smarter than I ever was at their age. Is that me? Do I stop here? Okay. Well, great. With that, please welcome Eliott Trencher. Thanks, John. In John's section, we touched on a few elements of our strategy. High quality assets, best-in-class balance sheet, and really savvy capital allocation. In my section, we're gonna go through two of those, the asset quality and capital allocation, and just give everyone some data around this, these two pillars, right? We can say we have the best assets. We can say we're really good at what we do. You're all gonna judge on your own, so why don't we give you the information that you need, and then you can make a decision. We're not gonna do that on the balance sheet. Our balance sheet speaks for itself. Our low leverage, our maturity schedule, there's no variable rate debt. We think that's pretty self-evident. Starting with asset quality, how do you quantify if an asset is good? We looked at four different things. We looked at the age of the portfolio, we looked at the locations, we looked at the types of tenants we're attracting, the company that we keep, and we looked at sustainability. Let's see how it plays out. Age, this is slide 14, for those following along on the audiocast. We've talked about this before. We have the youngest portfolio. We looked at a subset of peers in the office and life science space, but our average age of 11 years, well below where other office companies are. We said, let's take this a step further, okay? How would we compare against a cross-section of REITs? Outside of the office sector, right? Are we just good because of the other companies that we're comparing ourselves to? Or how do we stack up against REITs in general? We looked at a cross-section of blue chip, high-quality REITs and different property types. You can see that we're very, we have a very young modern portfolio, irrespective. We think that this kind of just substantiates our point of high-quality assets, young assets. That's great, but if they're not well located, what difference does it make, right? You have to be in the right locations. We try to quantify that as well. We took Walk Scores, and we did it market by market because it's very difficult to compare Del Mar in San Diego to downtown San Francisco. They're just two different markets. We said, "All right, taking our portfolio in San Diego, a lot of Del Mar, Little Italy, a little bit in UTC, how do our Walk Score locations compare to other public companies in San Diego?" We're 30 points better. You can see in four of our five markets, our Walk Scores are higher, meaning our portfolio is more centralized. It's more amenitized than others. If we have a new portfolio, if we have a well-located, centralized portfolio, we should be attracting the best-in-class tenants. Here we looked at everyone's top tenants in the office and life science sector, and we said, "How many of them are investment-grade companies?" 31% of ours, of our portfolio, based on top tenants, are investment-grade, high-quality credit companies. The highest, as you can see. No single company makes up more than 5%, so it's not getting skewed by anything. If you were to look at our entire company, we can't speak for others. Over 50% of our portfolio is investment-grade credits. We have the youngest portfolio. We have a very well-located, centralized portfolio. We have the highest concentration of investment-grade tenants. Sustainability. I mean, this is something we've been talking about for the better part of a decade. We are always highest on the GRESB rankings. We have the highest proportion of platinum-developed buildings. We frankly developed nothing other than gold and platinum office buildings since 2015. One of the first to be carbon neutral. I mean, I think our track record really kind of speaks for itself. You might be asking yourself, "That's all great, but how does that help me as a shareholder?" We think slide 19 starts to answer that, right? We took margins, and this is over a long period of time. This is 2015 to 2022. Our margins are higher than anyone else. Our occupancy is above the peer group average, right? We are getting a disproportionate share of tenants, and we are generating good, you know, margins on those tenants. CapEx. Anyone that's gone to any of our properties knows that we are investing in our properties. That said, our CapEx ratio is a percentage of NOI, still below average, right? It's high-quality assets require less capital. Tenants that are making long commitments require less capital. For those that remember, we actually looked at this ratio in a few years back at one of our prior investor events. Our numbers come down since then as we continue to improve the quality of the portfolio. Finally, rents. Rents should be growing if we're doing our job. We've talked about a mark-to-market of 10%-15%. We tried to break that down for you a few different ways here. In the past, we've talked about by region, and you can see here all of our regions, rents are below market. Property type. Now that we have more life science, how does our life science rents, rent mark to market compare? Office has it, life science has it, and we did it by Building H as well. The point here is that there is not one or two assets or one or two markets that have generated that rent growth. It's pervasive throughout the entire portfolio. Now let's pivot to capital allocation. Okay? We're gonna look at the period from 2015 to 2022. We chose that period because everyone here that's followed us for a while knows that what we did in the beginning of last cycle in 2010 and 2011, buying early in the Bay Area, buying early in Seattle. We don't need to rehash that. Frankly, we're not a one-trick pony, so we're fine cutting that out and judging us on what we've done for you recently. These are just some highlights of what's happened over that period of time. We got into Austin. We've done nearly $900 million of life science acquisition and development/redevelopment, right? This is not new to us. We have been doing this. We've sold the largest asset in South San Francisco when we sold the Exchange last year for over $1 billion. We did a $900+ million joint venture with Norges. By the way, we did all of this while also de-levering 1 turn from 7x to 6x. These are just words, right? Let's give you some data on what's happened and how that actually translated into the company. 2015, the end of the year, 92% office, 8% life science. Yes, we have life science. This is not, again, something that we've just done lately. We're not a Johnny come lately to it, concentrated in San Diego and a little bit in Seattle. Today, when you fast-forward, life science has more than doubled. We have 5% high quality retail and residential. 1,000 residential units, 94% leased. High quality retail projects in One Paseo and The Sunset at West Hollywood. Our office has gone from 92% to 75%. You really need to break this down a little bit further on what has happened to that composition of office. When you look at the office that was 10 years or older in 2015, it was over 40% of our company. Today, it's 17% of our company. Nearly 85% of our company high quality residential and retail, life science, and office that is 10 years or younger. What did we do over this period of time to get there? We sold $3 billion older assets, less amenitized locations, higher CapEx burdens, and we reallocated that capital into acquisitions, $2 billion, and developments, $4.5 billion, which you can see are younger, more centralized, less CapEx intensive. When you put that together, what did the company look like in 2015 versus 2022? Okay, well, seven years later, we got one year younger. Our sustainability scores went up. Our portfolio became more amenitized and centralized, and our CapEx ratios went down. All of this is great, but you might be saying, "Guys, anyone can buy good assets and sell less good ones. That's not that difficult. How are we helping shareholders?" It's a fair question. The answer really goes back to that chart that John showed in his slides. When to buy, when to sell, when to build, and when to do nothing. If we can get that right, we're gonna create meaningful value for everyone. Let's see. From 2015 to today, earnings grew 45%, meaningfully outperforming our peers. Our NAV for Green Street meaningfully outperforming peers. It was up, whereas peers have actually been down. Our dividend up 54%, outperforming our peer group by 38%. This doesn't happen by accident, right? There's a lot of thought. There's a lot of strategy put into how can we have thoughtful capital allocation, strategic capital allocation, that's gonna create value for shareholders. That's what I've got. Hopefully, the data here has convinced you that we think we know what we're doing, and now I'm gonna turn it over to Rob Parrott to introduce our next speaker. Thanks, Eliott. Welcome everyone to our 2022 Investor Day. As John said, and Eliott said, I'm really pleased to be able to announce our next guest, our featured speaker today. Before I do that, I wanna set the stage a little bit. As all of you can see here in California, we have a lot of great things going for us. We have the Golden Gate Bridge. We have the San Francisco Bay. We've got great weather. We have beaches. We have the Lakers. We have the Warriors. We have the 49ers, but, you know, they're. We still hope they'll get there. One of our other regions has Austin. And Gary Farmer, who I'm gonna introduce right now, has been such a tremendous force in Austin. He is what has created the Austin you see and know today. When you have come to visit us at Indeed or visit Fernando Urrutia, our regional head, and hear about what we're doing in Austin, a lot of what you see in the geography around, the companies that have come, et cetera, are due to Gary's efforts, tireless efforts. Gary's a very interesting fellow. He is the President of Heritage Title, President and Founder, and he's also Chairman of Opportunity Austin, which is the group he runs that has been so successful bringing companies into the greater Austin community. I think on a more personal level, one that I know John shares with me and a lot of people in our company, from the day we closed on Indeed Tower, Gary opened his doors to us and his time and has helped us immeasurably with getting to know people there, helping us establish our business and our toehold. Last but not least, he's also a tenant at Indeed Tower. We're very pleased to have Gary there. On a personal front, he's dedicated to his wife and daughters. He's an avid hunter and fisherman. In fact, so avid that I stopped sending him pictures of the salmon I would catch after going to his office and seeing the pictures he had displayed around his office. With that, and without further delay, I'd like to have Gary come up and talk to you about Austin, and strap yourselves in. This is gonna be a good one. He's got a great sense of humor. Thank you, Rob. Thank you very much, Rob. I appreciate the generous introduction. John, thanks for inviting me here. I'm pleased to be with all of you. I apologize. I don't know what's going on with my voice. It's a little scratchy. I can apologize for that. I cannot apologize for this urbane, sophisticated accent that you will enjoy for the next 15 minutes. Let me say this very quickly. As Kilroy has come to Austin, their approach to managing office buildings has manifested itself in very fruitful ways. They are an incredible landlord, and the degree and level of service, the approach to making tenants feel welcomed and make sure. In a new building, by the way, which always has a few, you know, things going on, but they have addressed those head-on. We are very thankful for the Kilroy touch as it manifests itself in Austin. To set the stage, without any question, I am a homer for Austin. I am unabashedly biased about Austin, but I think that is for good reason. That's really what I wanna talk to you about today. I recently, in a presentation not unlike this, but to Austinites, I made a very positive declaration about Austin. I had been in, by the way, in May, I'd been in a small group setting with Jamie Dimon. Mr. Dimon said, "I don't know what's coming. I don't know if it's gonna be a minor storm or a major storm, but it's sitting out there, and it's heading our way." To the extent that Mr. Dimon is right, as he typically, usually is. We've got some stuff coming our way. My declaration to this Austin group was, "No matter what comes, Austin, Texas will lead this country out of the recession." A friend of mine, who's old like me and who had watched the movie True Grit, like, Lucky Ned Pepper said to Rooster Cogburn, he, from the back of the room, said, "Mighty bold talk for a one-eyed fat man." You know, actually, it is mighty bold talk. Why would I put myself out there? Why would I subject myself to the potential of failure, of being wrong? It is because I believe it, and I believe it passionately and firmly because of what we do. Let me give you a little history about Austin. Over the longer arc of time, Austin was a very laissez-faire place. I mean, we're a state capital, big university town, liberal politically, left of center. Governor Perry used to call us the blueberry in the bowl of tomato soup, and he was right about that. Economic development was not a thing. We did not do that. Not that we didn't do it very well. We didn't do it. If it happened, great. If it didn't, okay, fine. We all lived in Austin. People were happy. That created very lumpy economic cycles. Hard to predict, hard to project if you have no base and you have no effort. In the early 2000s, when the dot-com bust or tech wreck happened, a group of business people got together and said, "Surely there must be a better way." We put together a plan which was not like past chamber of commerce plans, which relied on jargon and buzzword to create the illusion of economic development. We created a real plan, a plan with goals, objectives, metrics, implementation strategies, a plan that would hold us accountable. It's a plan that is run by and funded by businesses. We don't rely on the government. We work with city government, county government, and state government, but we are funded by the private sector. With those funds, we set up a five-year plan, so we're now in the fourth five-year plan, the fourth year of the fourth plan or the nineteenth year of execution. This plan focuses on four primary objectives: recruitment, attraction of new businesses to the five-county region around Austin, retention, expansion of existing businesses. Now, that's economic development 101. Any economic development plan in any city, anywhere, has recruitment, attraction, retention, expansion. We go a step further, and we put about a third of our budget towards primary and secondary education. Keep these kids in school, cause them to graduate, create a pathway for them to go to post-secondary education. Because at the end of the day, whether you're recruiting or expanding, it's all about talent. It's not about the hills and the lakes in Austin. It's not about the music scene. It's not about keeping Austin weird, although a fair number of these companies have contributed to that fact. It's about the talent. Ultimately, it's about the place we live, the place we call home, and the infrastructure necessary to accommodate the growth. Those are the four areas that we focus on. Let me tell you how we've done in those four areas. Recruitment attraction. Over 18 years and 10 months, we've recruited 815 companies to the five-county region. Those would include Oracle, data center first way back in the early 2000s. We now have their headquarters. Apple, big campus. Now they're building a billion-dollar campus to accommodate 15,000 employees. Tesla, now the Tesla headquarters, Charles Schwab, and so on and so forth. Big companies and little companies from around this country. As you probably know, California is our leading donor state. 252 of those 815 companies from California, followed by 112 from Texas. Although we don't recruit Texas, they know us. They're our neighbor. They can come if they want. An interesting thing, 108 companies of international origin, and that's without a great deal of effort on the international scene. We will include international economic recruiting in our next five-year strategy. So California, Texas, International, New York, Illinois. No surprises here. California, New York, Illinois, three high tax regimes. We have no personal, no corporate income tax in the state of Texas, so it's a very good place to locate. 1,417 expansions. Pretty good. All in, all done. In 18 years and 10 months, we've created 577,000 jobs. On a cumulative basis, that's an 85% job growth rate. 85%. That makes Austin, Texas, the most prolific creator of jobs in America on a percentage basis. We think that's pretty good. We're proud of that. Those 577,000 jobs have created about $44 billion of new wage, primary jobs bringing wage to our economy. You pick the multiplier you want. I don't care. It's big. Okay. We're happy about all of that. Education. We have helped over 113,000 kids get $1.2 billion so that they can matriculate to post-secondary education. We think that's very strong. We have changed the direct high school graduation to college entrance by about 6% in the region. Like I said, it's all about talent, the talent we have there and the talent that we can attract there. By the way, we're attracting talent. We have been and continue to be the number one domestic in-migration market in the country. Those in-migrants, by a rate of greater than 50%, have a four-year college degree. Those in-migrants are accretive to our workforce, both quantitatively and qualitatively. We're glad to have them. I just saw the other day, we were the number one millennial in-migration market. With regard to infrastructure, in the last 18 years, we've developed a variety of different roadways, but about $20 billion of infrastructure capital to create roadways. That doesn't count the $7 billion now allocated from the state for I-35. I think on a per capita basis, we've probably put more money into roadway infrastructure than anybody else. I'm not 100% sure of that, but I would bet on it pretty good. That's just a snapshot of what we've accomplished in the last 18 years. We will start this Thursday creating the next five-year strategy. That process will take six to eight months. We'll raise the money, private sector money, next fall into the spring, but we will be able to move out of this strategy into the next 2024 through 2028 strategy unabated. The community is excited about it. You know, if we're gonna go into a downturn, just like we were going into a downturn in 2008, we actually grew our number of investors and grew the amount invested because people recognize in a downtime you need the effort perhaps more than in an uptime. I am very excited about what we have going on. Sorry about my voice. I'm very excited about what we have going on. We have headwinds, of course, our own headwinds. Traffic is still a bit of an issue. Affordability is a bit of an issue. We need our city government to be better. They can be, let's just say a challenge. They can be a little bit of a challenge. Our land development code is, I like to describe it as being Byzantine. It's way over its useful life, yet there continues to be a healthy tension in Austin between growth and no growth. What does that mean? Number one, it means those of us in the real estate business are better than we would be without that tension. It also means if you own an asset, you really have something because the next guy can't just come along and decide to do something in a real easy, simple, efficient manner. It takes professionalism, it takes expertise, and it takes capital. I like to say it keeps the dentist out of the business. That's an inside joke. If you're from Austin, you wouldn't understand otherwise. It's a great market. I think the opportunity. We've spent 20 years, in essence, building a base. When we started, we thought we were a tech town. A lot of other people didn't know we were a tech town. Today, because of the effort that we've put forward, we have tremendous economic verticals in tech. Tech can actually be divided, advanced manufacturing or semiconductor, and then software, IT, cyber. Two sectors, not one. We now, because of the development of the med school, have a life sciences sector. It's nascent for sure, but growing rapidly. We have a financial services sector. We recruited U.S. Army Futures Command. We now have a national defense sector. In June of 2020, Elon dropped the big bomb on us. We now have automotive manufacturing in spades. All of a sudden, a brief 20 years, we've grown from having one economic sector to rely on now to six. The diversity means sustainability. I think our economy is one of the more sustainable, and I think it's gonna present opportunities for us to grow and to lead the country out of recession. I've got exactly 20 seconds left, so I thank you very much for having me. Hope that worked. Thank you, Gary. We've got it covered. Now we're gonna go into two panels. Our first panel is gonna be an Austin panel, appropriately, following Gary. Can everybody stand up? Fernando Urrutia, our regional lead in Austin, will lead that. Can you see me? Hello, everyone. Can everybody hear me? Good. My name is Fernando Urrutia. I joined Kilroy in March of this year. I came to Kilroy from Milestone Investments, where I was there for 11 years, did acquisitions, leasing, asset management, and was recruited by Kilroy. Very excited about the opportunity. As part of my prior career, I covered Texas and covered Austin, so very familiar with Austin. Managed about 3 million sq ft in that market. You know what, you know, to bring it full circle, about 20 years ago, I graduated from UT. Been following Austin, very excited to move there and seeing the exponential growth that Gary alluded to a moment ago. That's a little bit about me. I'll introduce the panel. We've got Wendy from Page Southerland Page. She's a principal there. She is a market lead for Austin, does commercial interiors and hospitality. We've got Troy Holme, who is a vice chairman at CBRE, is responsible for about 5 million sq ft in Austin. He's got a lot of purview into the market. Then we've got Jeff Chestnut, who is the acquisitions lead for LA and Austin and the deal lead for the two, Indeed Tower and Stadium Tower. We've got a robust panel to just kind of talk about the market. Before we get into Austin specifically, we thought it'd be good to kind of start at a very macro level and talk about office and then tie that back to the Austin market. With that, I'm gonna start off with a question for Wendy. Wendy, just 'cause you've got the benefit of talking to a lot of tenants who have been in the Austin market for a long time, as you think about the tenant shifts that have occurred due to COVID. Mm-hmm. As you think about what's permanent versus what's temporary, we would love your perspective on that. Well, I have a very loud voice. I'm from West Texas. I also am afflicted with whatever we brought in with us, probably the allergies. That's maybe the only dirty little secret about Austin. My perspective on office is actually twofold because we are one of the newest tenants at Indeed as well, and very excited to be on a floor and a half there, and we're going through our own best practices as we talk to ourselves, our staff. We're now 1,300 people in 13 markets, and some of the shifts that we have been seeing are very true to what's happening in the market. We were looking at office space that needed to be more flexible and more diverse within its type of spaces, and that the foot got put on the gas pedal with that. Flexibility is a really important one, both in the ability of people to come in and out of the office and then what is happening within it. That's a big one. Individual control kind of goes hand in hand with that. That's also a big one. The third one is that incorporation of kind of exterior and amenity spaces, and it's one of the things we're so excited about with Kilroy's real commitment to that within all their projects. That's great. Troy, would you have an opinion on that? Yeah. We've seen sort of a shift. I mean, this is no real realization to y'all, but the employee is king, right? The employee is king to all these tech firms. There's a stat. Gary could probably correct me on this, but there was something like, I think 100,000 white collar, over $100,000-a-year jobs and only 40,000 qualified applicants for those jobs. We have a surplus of good paying jobs that are just not getting filled. One of our big pushes is obviously recruitment, partnering up with companies to use your office building as a vehicle to entice, you know, these tenants, these employees to choose those companies to be in those locations. We spend a lot of time on it. A lot of time in Indeed Tower has been spent on the front end and just what do the tenants want? What do we need to do? Obviously we talked about it. Walkability is huge. Our downtown, unlike we saw yesterday, our downtown is actually pretty vibrant in the sense of having that demographic of a 25-year-old and a 35-year-old who is a pretty high wage earner. So Indeed Tower, for example, sort of encompasses everything that they're looking for. We've had a little bit of struggle during the pandemic. We had a big sublease drop onto the market that was 20% less than our building, but ultimately, you know, we've come back from that and, you know, we should be, I know I don't know if this is a quote or anything, but we should be about 86% leased by the end of the year. That's correct. Yeah. You know, on your point about being able to have that highly amenitized space to bring people back in the office, the announcement to our staff of moving into Indeed got people so excited to be able to sort of have the pride of where they are. Also they can't wait to sort of dive into what that space does for them. Yeah. as a worker. It's pretty easy, right? It's just all about, you know, if you're at home working, you know, what drives you to go in the office, right? Yeah, sometimes it's people and the relationships. For the most part it's, you know, hey, what do I have in my office building that's just a lot better than what I have here in my house, right? Commodity office in Austin right now, commodity suburban office is down, viciously down. You're gonna start seeing some numbers come out in the coming quarter here, probably fourth quarter and first quarter of next year, that are gonna be a little bit staggering on just what the deals look like and some of the vacancy rate coming from other areas other than the CBD, other than the Domain Broadmoor/Uptown area, which is where Kilroy has one of their projects, and then really CBD adjacent. Those are the three really strong submarkets in Austin right now. Fernando, I don't think it's a mistake or a coincidence that both of these purchases were off market. Because once we had identified Austin was market for us 'cause of all the great set of facts that Gary talked about, the next step was identifying buildings that long term really met the needs of the market. And the way we went about finding those was through a pretty dedicated off market search 'cause we weren't finding buildings that checked those boxes, that were being widely marketed at the time. Yeah. Something else just to mention is that Indeed Tower is the only trophy building in all of Austin. I don't know if you guys know that. Sixth and Guadalupe is another building that we finished in the next year or so, but it's the only building. It's a good time to have a, you know, higher end, highest end building, for just to say. We're seeing a disproportionate amount of activity at Indeed Tower than we are in other assets that we represent. Troy, if you could elaborate on the activity that you're seeing. Who's kind of been active in this? Yeah, that's a great question. Yeah. You know, like anything, I started before Kilroy and with original ownership, with Trammell Crow developing it, and the idea was all about recruiting, but it was always on the tech side and hence a little bit bigger floor plate. We first got the Indeed deal, and then we followed up. Pretty subsequently since then, it's been really professional services. It's been law firms, it's been architectural firms, it's been a lot of financial services, it's consulting. We see that. That's actually helped Austin in the last couple of years when tech sort of or big tech sort of has gone on pause. We've seen other industries sort of take the helm and sort of step up, not as meaningful as big of pockets or taking as big of pockets. We already have the Indeed anchor, so it's been really helpful. These next subsequent deals will be financial services and engineering. As you, Troy, talk to tenants and just kind of figure out, like when you say, "Hey, what's really important to you given what's going on in the world?" What are the kind of the key themes that you hear from tenants on their decisions? Yeah. You know, it's funny, when we do get to sort of present to C-suite, we're now seeing the head of HR as being a voice or being definitely someone who's articulating the needs of the tenant, because it's all about recruitment, right? Once again, I know we're belaboring this, but it's all about how do we get these people back? You know, what is it considered to be back? Is it three days a week? Is it two days a week? Are we gonna do a hybrid? Are we not gonna do a hybrid? That's key. When normally when we present to them, we're saying these are the reasons why someone would come to this building, right? It's the main driver. Of course, you know, we're looking at, we. Gary made a really interesting comment about you know all the large Teslas of the world the Oracles of the world. Austin for the most part has been historically organic growth right? I did the first Google I think maybe 10 years ago in 20,000 sq ft and then I did them again at 100,000 sq ft. I did them again at 300,000 sq ft and so in different buildings. We'll see that. Part of that is working with these HR folks to understand the growth. You like the growth now when will we see the growth beyond? They kind of cover all the angles and it's really kind of difficult right now. Wendy, from your perspective, as you're talking to clients, customers, anything else like that apart from what Troy said that is important? I think some of the things that even that John and Eliott started off with are things that we're really seeing. Number one, there's no more either/or. I mean, it's cleaner to develop a single building type on a single piece of land. That's a very clean deal. But when you look at what tenants are wanting, they actually want mixed-use. They want reliable and interesting retail. They want residential that's nearby. They want, you know, office space that is modern, that has exterior and is amenitized. That is huge. When we see some of the bigger deals that are happening, though they're happening in areas that are really vibrant and are integrated with all of those other types of things, whether it's a Walk Score or an amenity level. That's big. We're also seeing increasingly our tenants are really interested in sustainability and what does sustainability play, because the HR group and the operations group and, you know, they're really working together to create a healthy workplace. Having the building be a tool in that toolbox is really valuable. You know, having being able to kind of lean into that versus having the building kind of fight you on those things is definitely something they're looking for, because they have to spend, they can spend less money to be able to kind of help achieve their corporate goals. I think those are two big ones. Right. What's interesting with sustainability is that, sustainability was, you know, a need by many, many companies, and we heard about it a lot, for a certain amount of time. Sort of pre-COVID for a while there, it just sort of died out. Now, just recently, it's become part of the dialogue and the narrative again. Part of it is millennials are much more eco-friendly. They're much more environmentally conscious, and they are looking for that. The question that comes up, so they're, it's being pushed not only from the employer, but from the employee standpoint. It plays into some of our bigger themes of, you know, we're seeing more and more. I won't deviate from my main role here, but I spend a lot of time dealing with investors that are coming in, and we're seeing a lot more foreign capital, especially from Europe right now, and we're seeing it. I think they're thinking that we're gonna have a little bit of a reset or some opportunity for them to get into Austin. One of the first things they ask about is sustainability. Mm-hmm. You know, obviously, you know, what sort of scores we have, you know, things like that. It's gonna be interesting to see that future capital and what it kind of changes and what it does with for Austin. Okay. Yeah. One of the last questions is, Wendy, you've had the opportunity to work in the Austin market for a long time. One of the things that appealed to me about Kilroy is having a new perspective come to the market. That's what got me really excited about the job, but I'd love to hear from you as you've worked with Kilroy on Stadium Tower and how Kilroy approaches a project very different from the local developers. I would love for you and Jeff to talk about that perspective, the thesis, and what we do differently. I mean, that site is incredible. It's at the edge of The Domain, but it actually has all of these other factors that are great about it. One of the interesting things is when you think about retail and you think about planning and you think about that exterior amenity space, we had some good bones there, but when Kilroy brought their lens into it, they really amplified some of those great pieces of that building. Reimagining that stack so that your plan can actually accommodate a major anchor and a meaningful multi-tenant base. Taking that idea of exterior amenity and expanding it to the whole building. Now that you have this sort of equity of amenities within the building, and now you don't. It's easier to lease up because you don't have, you know, two classes of space within that one building. I think all of those things were great to see them kind of leaning into. Yeah. On our side, it was really fun during the diligence process. It was a lot. It was focused around can we add these terraces that you see above me? I'm not sure if this will be on the online slide, but we looked at. There was a lot. I mean, the building was so flexible and so well designed and just great floor plates. All the kind of pieces of sustainability and flexibility were built into the building. I think looking at what we've done on the West Coast in our portfolio, we got together with Page, who's been a great partner on this. It was pretty fun and pretty quick. I think Bianca too is possibly gonna get into that too more, but you know, it's been a fun project. All the components were there, and we kinda came in with, I guess, a blank slate or a different way of looking at it and said, "Hey, we can do this." Then the area itself, to echo what Wendy said, there's about 900 units within half a mile just today. There's 60,000 sq ft of retail, again, within just a half-mile radius today. Another 90,000 sq ft or so of retail coming. We look at this area as you're adjacent to McKalla Light Rail, which is an ongoing project. They broke ground on the station earlier this year and should be wrapped up in 2023, which will provide great kind of public transit connection. You look at all the multifamily that's there and then what's coming, all the retail that's there and what's coming, and then the enthusiasm for Austin FC, it's a pretty exciting district, and we think it's gonna really take what's great about The Domain, and there's some great parts of The Domain, but really bring it into a more modern setting that is a little more interesting and the different components of that development work with one another a little bit in a more There's also, you know, I think, Gary, you didn't flash any pie charts today, but one that he shows and he did talk about is really just this incredible diversity within Austin of business types and of people and educational backgrounds. I think that site in particular. Mm-hmm. It is such an incredible blend. It's really going to leverage. People can live near their work, and they can go to the games near their work, and they can go to a brewpub after. Yeah. I really, it's a really fun site to see. Yeah. As we were looking at Austin, we've been looking for the better part of five years, probably longer than that now, at that market. You know, that was one of the first things we had to get through was, is it just one sector that it's dependent on? It's really interesting. Gary hit on it, but as you start peeling back the layers of the onion, there's a lot of growth, and we've seen it, Troy, at Indeed Tower. Mm-hmm. I mean, you know, the tenants we've been talking to there are from a lot of different industries. Yeah. You know, I wanted to touch on something that's probably more factual, which is, you know, at Stadium Tower, you know, The Domain market is 99.6% leased. There's no direct space in that market whatsoever. There's not actually a lot of sublease space coming up that we know of. You know, most of the deals have been done. You know, Big Tech is predominant there. When you look forward, this is something to understand about Austin in general, is that there's not. Texas is known. I'm 50 years old. I think I've been hearing for. I started my career in L.A. I moved to Austin 16 years ago, but from the very beginning, but 25 years ago, it was always that Texas has these high highs and these low lows. That is partly true when you talk about Houston. To some degree, you talk about Dallas, mostly about Houston. Austin, since the recession of 2008, 2009, we've really, and Gary knows this the best, we've time after time over that last 15 years, we've really shown people that the real institutional factors of how well Austin does through the cycles and some of the blips that we have. Austin tends to plateau, right? Then starts to shoot back up again. That's what we anticipate will happen. Our rents are higher now than they were pre-COVID. I wanna tell you guys also that we went through 37 quarters of positive absorption up to COVID, right? 37. You know, almost 10 years of just growth. Then we had a couple, two, three, four quarters of negative absorption, and then second quarter of this year, we were positive again. Third quarter was sort of flat. You know, our road hasn't been like others, right? We have shot many, many holes into the idea that, you know, there's high highs and low lows in Austin, particularly. As you're counseling clients, Troy, it sounds like you're feeling, as you think about going to this, Gary alluded to the kind of the headwinds in the market, how are you kinda talking to folks? I mean, like you said, you're pretty bullish about long-term Austin. How are you kinda thinking about the next 12-24 months? I think we'll see in Q4. I know this already going into Q1 that we are going to have increase in sublease space. This may be given the time I'm seeing here, can't go into deeply, but the sublease space, it is a little bit of a concern for many. When you start seeing how much terms left on the sublease space, when you start seeing the idea that like a big portion of this will come from one or two companies, maybe a social media company specifically I can't talk about. You know, the idea is some of these companies too don't know what they need to do right now. They're not sure. They put space on the market. You know, whether or not they're gonna transact, they have to do certain things. Like, as an example, this social media company has to build out. They took a whole building down in downtown. They gotta build out all the amenities, right? They're not gonna do a 100,000 sq ft deal. They're gonna have to do a 300,000 sq ft deal, spend the capital to build the amenities, and the likelihood of that is probably less likely. I think we're gonna absorb. Austin's known to absorb sublease space pretty quickly. We also, by the way, didn't even track sublease space barely for five to six years because we had none. We're not immune. Don't get me wrong, we're not immune to what goes on in the United States, what goes on in the world, right? When it comes to odds, I think I'd bet Austin all day, every day. As long as you wanna be in the office market in general, you wanna own office buildings. I can't see another place you'd possibly wanna be. Great. That's it for the panel, folks. I know there might be some Q&A as it relates to the market, but that's it for our panel. Thank you. Now we're going to do our life science panel, and that is more than just me. Please come up here. While they're getting seated, you can see why we're so excited about Austin between Gary's comments and then the panel that you just heard from. I think what I really love about these panels are twofold. One, we learn from some of the industry experts we work with, but it's also a terrific way to showcase the talent that we have at Kilroy that I and others are fortunate to work with. It's truly an invigorating environment, and I think you can see by the passion and depth of knowledge with the experts we have that this company is a driving force in the fields we move into. Life science, we are equally as excited about it. It's a very important component of our business. Just quickly to briefly introduce our panelists, Scott Miller with Jones Lang LaSalle, is a nationally recognized life science broker, has done more large transactions than anyone I can think of and is very knowledgeable in the space. Next to Scott is our own Bianca Doreschlag, who is a superstar at Kilroy. She leads our design group. An interesting factor, too, on any given weekend, she may have run a marathon or decided to run from the South Rim to the North Rim of the Grand Canyon and shows up at Monday conducting her Zoom design calls promptly at 7:30, or 8:00. Nelson Ackerly, I don't think is running any marathons, but he- I barely made it up here. Nelson is also a star of ours. He runs our Southern California leasing. I think one of the things that he's really been. For those of you that have met him over the years, I think he's been with us now six years, seven years, has done a tremendous job, reestablishing our San Diego office, bringing in new team members, and really help growing the market. With that now, I'd like to get into the life science area. I think the best way to do that is, Scott, maybe start with you and give us an overview, sort of maybe a little bit nationally, but what are you really seeing here where we are now in Oyster Point in South San Francisco in terms of the life science market? What does it look like? What does it feel like today? Yeah. Thanks, Rob. Sorry I don't have a lapel mic, but hopefully you guys can hear me. I'll start macro to your point, and then I'll hone in on the micro. I'll be as brief as I can. On the macro life sciences climate nationally, as many of you in the room know, the XBI stock index is down. It's the biotech stock index. It's a great barometer, a great bellwether of the general health of the life sciences real estate market nationally. When you look at the carnage, so to speak, that we're seeing nationally, it's really impacting kind of the mid-emerging, pre-clinical, pre-commercialization, yet to enter the clinic or just have entered the clinic pre-IPO companies, which is largely the largest concentration of a lot of the R&D markets you see nationally, Boston, Cambridge, San Francisco, Seattle, San Diego, RTP. It's. I won't say that big biotech, big pharma is immune to what we're all experiencing in the public equity markets right now, but a lot of our demand is driven by big pharma, big biotech. With some standard deviation, there's, you know, 20 big biotech, big pharma groups out there, you know, that are in disease states that you know of, that are advancing humanity, creating cures, doing great things for, you know, our populace. Ten to 12 of them already come to the Bay Area and to specifically South San Francisco, so that leaves arbitrarily about eight, nine or tem who are yet to come here. They absolutely will come here. They have to come here from the marketing perspective, from a branding perspective, from an identity standpoint. You know, in the next three, four, five, seven years, the balance of what we call big pharma, big biotech will come to South San Francisco and plant their West Coast biologics flag in the ground. We think Kilroy Oyster Point is masterfully positioned for that impending demand when it comes. We talk about this a lot as a team, Rob, just to answer your question again. You know, we often forget that we are off on that kinda mid-emerging sector I was talking about, kind of the small cap, mid cap, pre-IPO, pre-clinical, pre-commercialization type of company. Nationally, we're down on demand. We're down 20%, give or take 1% or 2% here. We're down 45% in Boston, Cambridge, which are the two largest markets in the nation. We often forget that while we're down, we're back to pre-pandemic levels, which frankly was a pretty darn healthy time in 2019, advent of COVID, 2020. If you look at it from that lens, it adds some perspective on where we are. We had a crazy bull run, and now we're back to kind of where we were pre-pandemic in 2019 and 2020, which is not overly unhealthy. Last thing I'll say, and then we'll continue to talk about Kilroy Oyster Point, is we are positioned very well for when the market comes back. There is some signs and some signals of some good and great expectations to come. I talked about the XBI stock index. A lot of us have prognosticated that we've hit the trough, hit the bottom of that in June, July, August of this past summer. We're on the way up. If the Fed ceases, you know, rate hikes in the impending couple months and inflation starts to stabilize, we've got $1 billion of dry powder on the big pharma, big biotech side. We've got a lot of companies positioning. We're attracting the private money, the public money, and, you know, we are looking at kind of coming through this micro-correction, as our team calls it, probably into Q2 of next year. I think that's a common belief and we all kind of are hanging our hat on that. It could be a frothier 2023. Maybe I can just build on that Kilroy Oyster Point a little bit coming off of that market overview and just talk a little bit about our excitement with the site itself. Oyster Point or Kilroy Oyster Point is a 50-acre site. This makes us especially excited about all of the opportunity here. You guys all drove in and saw Phase 1, which was completed about a year ago. Now we've got Phase 2 coming out of the ground full scale. It's a very exciting time for the site. Just a greater image here because I get the pretty pictures. We've got a five-phase site here. We've got up to 4 million sq ft of potential development that we can act on. The site has the incredible benefit of having a mile of coastline. This is such a rare thing, and one of the great things, especially here, is that mile of coastline is right adjacent to the Bay Trail. For those of you who aren't San Francisco natives or Bay Area natives, the Bay Trail is potentially up to 500 mi of connected trail around the Bay. Currently about 350 mi completed. It's a resource that we see used almost every day out here at Oyster Point between recreationalists, tenants alike. It just offers so much, so many great attributes to it. It's an amenity in itself, and it's something that we really capitalized on when thinking forward about how we were gonna develop Oyster Point. Health and wellness, something that I think we've all been hearing as a hot item out of the pandemic. It's something that at Kilroy we've been thinking about far before the pandemic itself, and it's something that we've really bled in throughout this campus to think about. We've got on one side all of this great opportunity of heavy, robust life science building. On the other side, we've got this incredible matrix landscape opportunity within that 50 acres that we could really capitalize as an additional or when thinking through that amenity program for our tenants. I'll lean into Scott later on in the panel to talk a little bit more about our tenant base. For us, we think that the sheer opportunity from the scale and the adjacencies here on the Bay really makes the site something that's extremely valuable, not just at this current time, but for future markets for our life science tenant base. That's great. Four million sq ft of scalability here, you know, is the point. I think as Eliott said in his comments, life science isn't new to Kilroy. In fact, I should have said this earlier, our life science lead, Peter Daly, is not here today. He works very closely with Nelson, but also me as well. Nelson, particularly in San Diego, where we have a large life science portfolio, his wife is due any minute, and we thought it might be nice if he didn't get called off the panel. It's a really polite way of saying I was a second choice. No. Would have had you both on if we could. Nelson, why don't you talk about Kilroy's life science platform in a broader sense and some of what you've seen going on. Sure. Before I jump in, I mean, a couple of things. One, it's always, even sitting on a panel, fun to listen to Scott talk a little bit about San Francisco, because when we talk about Kilroy life sciences, Bay Area and San Diego, that's where our life science presence is. I can talk a little bit more about that, too. Scott can give a summary on what's going on in life science in the Bay Area, and it's very similar to San Diego. I know I'm a lifelong San Diego guy. I'm like, you are Gary with San Diego. I'm the biggest advocate in the entire world. When you guys visited me ten years ago in San Diego, you weren't asking me tough questions. You were riding off a trip with your family and asking me where to go to dinner after SeaWorld, right? To see how far we've come with life science over the time in San Diego and to see how interchangeable the ideas are between our stuff in San Francisco and San Diego is completely aside from the question, but very, very, very interesting and compelling. I'm not gonna throw a lot of stats out. Eliott did that. I think you see the growth in our portfolio from 8% of NOI to 20%. I don't like doing that because he's a much better stat guy than I am. I think he's still mad at me because I cheated off on him on an eye exam once, right? I don't. I'm more of a leasing guy who likes to round up. I do wanna drive home one thing. Life science has gotten so red hot lately. We've had a lot of people jump on the bandwagon, a lot of people that are new to it. To Rob's point, we are not new to this space at all. We have been in San Diego for 40 years, and for most of that have had a life science presence. Back when I was trying to dress like Kurt Cobain and getting, you know, denied by girls at frat parties, John Kilroy was literally at in Sorrento Mesa in other markets, buying, acquiring, and leasing life science space. We've been in this space for a very, very long time, and we put the same financial discipline and patience in life science that we do in any of our other product types, even though it's 20%, possibly going to 30% of our overall NOI. Focusing on San Diego, kinda where we are there, and we'll talk more about Oyster Point. The other parts, both in San Francisco and San Diego that's worth pointing out is not only that we're in San Diego, where we are. We are in the core markets of San Diego, both with UTC, Del Mar Heights, going out to 56 with our Santa Fe Summit project, 600,000 sq ft development that Bianca will give another panel on another time. We are in the core parts of those markets as well. We've been in it a long time. We're established in these markets. We've got really good tenants, you know, Cytokinetics, 23andMe, a couple you'll see on the tour for those of you touring later today, but also down south, Acadia, we've got Abbott. We've got a lot of big names. Not to regurgitate a lot of names into it. This is a very established practice for us. Great. I'd like to touch on a point or two, and maybe Scott, you and Bianca can kind of riff off each other. Bianca, as a designer, when you look at 50 acres on the bay, I mean, what inspired you when you sat down and started putting pen to drafting table and not that we use drafting tables anymore, but what inspired you with the site? You know, Scott, maybe you can blend into that. What is it that modern tenants in the life science space are looking for? Yeah. Rob, you paint such an artistic picture. We are really, you know, with the opportunity that we had at this site is really encapsulated by an entire team vision. We have a Class A team, not just within our own staff here for Kilroy, but also in who we've engaged on the project site. We're working with James Corner Field Operations and DGA. James Corner Field Operations, the leading landscape architect, and DGA, leading and our leading life science architect, and really creating the vision amongst others for this campus. Right off the get-go, the opportunity to bring in our experience that we've had with amenitizing from a tech perspective and merging it with the newer way that we're seeing life science lean with a very amenity-heavy campus. We were right in our wheelhouse. This is our bread and butter. Phase two specifically, which again, still coming out of the ground, has a vast amount of amenities to it. We've got a 400-person amphitheater for all hands. We've got an F&B, and you'll walk to The Anecdote today, the F&B in Phase 1 to see what that really means to us. We're talking about creating space that will offer us a unique dining experience, sit down or grab and go. We've got a North amenity conference center that's going to be a part of phase two, all sitting and embedded in this dense matrix of landscape amenity. I think it's something that's going to be such an incredible resource and Scott, I'd love for you to go into the tenant base, but one thing that we've been iterating on in the past and kind of talking through is we're talking about a tenant base that is coming out of academia, a tenant base that's used to the campus lifestyle, a tenant base that is going to come onto the KOP campus and recognize that it's very similar. We are offering this outdoor, indoor workspace. We've got the robust life science buildings that really provide a place for them to technically excel. But we're also taking a second to think about these people as people, the employee as king, as Troy mentioned earlier, and saying, "We're offering amenities that will offer them break time, that'll offer them collaboration time, creative free form time. It'll offer them recreational headspace clearing." All things that are, I think, extremely important to this tenant base now more than ever and will really reinforce the, you know, the active endpoint of what these tenants are looking for, the creation of their own, you know, what is it? The ability for them to do what they do best. I've deliberately set up our practice group in the Bay Area as give or take 50% occupier tenant representation and 50% developer representation. I've had a front row seat for the better part of 25 years on hearing where occupiers and tenants are wanting to be, especially as we get into a return to work environment. What I applaud Kilroy for is I've had the pleasure of representing AstraZeneca in town, Merck, Amgen, Mammoth Biosciences, Insitro, Genentech, who's right next door. We put forth informal and sometimes formal focus groups asking these occupiers, you know, "What do you want to see?" We often notice and by distinction, other developments in town, you can't find on the West Coast 50 acres, scalability for 3 million sq ft, floor plates as large as we've designed for, air, beach, marina, harbor, the amenities that Bianca just talked about. Genentech made a funny comment that we spent 40 years designing something that our rank and file will do to stay on campus, and Kilroy designed that in two, three short years. It's unbelievable to see. You know, we're, like I mentioned, the call it the barbells of our marketplace. You've got big biotech, big pharma, then that mid-emerging kind of preclinical populace that's in demand right now. You've got company formation stage as well as big biotech and big pharma are the drivers of our marketplace right now. On the company formation side, one of the coolest things about the life sciences industry is today's scaling little biotech company could be tomorrow's, you know, market mover. If it happening at lightning pace, then they could be in a collaboration agreement with big biotech. Big biotech in our market is unique. Big pharma is unique. We're actually in conversation with a couple groups as we speak. Just given that we've been so prescriptive and put forth exactly what we want and what the occupiers want in this marketplace, which I will say, other developers have not been as thoughtful. You look at other developments and they're just more compressed. This is a more urban, suburban environment that the occupiers want to be at. It's helpful for recruiting, it's helpful for retention. As all of these biotech companies enter the war for talent, particularly again as we return to work, you know, we're just very well situated for this next run. Given conversations we're actively having, we're thrilled on the momentum even on what's considered a quote unquote, temporary micro down market. Yeah. Or Scott, if I can. One thing that I remember a conversation that we recently had with a tenant kind of thinking through innovation. Innovation not just on our campus, but also their own innovation. I think it's safe to say we're all well aware that these life science tenants, tech tenants alike are innovating within their own products. They're innovating within their own marketplace, but they're also innovating with their employees. They're innovating on what workplace looks like. They're innovating on what amenity looks like, what they wanna offer. What's so exciting to me is that we have Phase 3, 4, and 5 upcoming. We have 10 acres of marina that we have available as a resource to All of which we can innovate on and push further in our own abilities and offerings to really meet the innovation of our tenant base. I'll flash a sneak preview of an early concept of what we're thinking about within our marina. Like I said, it's 10 acres of waterfront or of on-water site. What is exciting with us is we went out and started up working with BIG out of Copenhagen and New York, and they're one of the leading architects in waterfront and on-water architecture. We sat down with them and brainstormed between them and some tenant focus groups on where can we go with this? There's so much possibility within the marina alone and where we can go to think about the innovation on transportation, the innovation on amenity, the innovation on how we use our workplace, how we think about our site. There's a lot of excitement here still left to come that we can continue to develop as we push forward. It looks like we're running out of time, but really, really quick, just to maybe tie some themes all the way starting with John's speech and coming all the way through in terms of activation. What's been interesting, not only on big scale ground-up developments like Oyster Point here, Santa Fe Summit down south at some point. We've been very successful in a bunch of conversions. A big part of that has been the lessons we've learned in office and activating and creating all the stuff that Bianca speaks so much more eloquently than I do too in life science came a long time ago 'cause that was Kilroy's special sauce and other product types is too, as well. When we are doing these conversions and we're getting really good return on it, a big part of it and even a lot of our office space now as it rolls, the life science space is wanting those very same things we saw in the office space. It's become a big, in a crowded life science development space, it's become one of our big competitive advantages in really driving home exactly that people space that Bianca's talking to right now. Scott. Speaking of competitive advantage, I think this will probably be the last question. We've got the floor plates going back to KOP. We've got the floor plates, we've got the building structure, we've got the things that support science and research. We have the amenities, the mile of bay trail, everything you've talked about. Scott, is our delivery timeframe also a competitive advantage? Can you talk a little bit about what the environment looks like around the time we're delivering for occupancy? Yeah. There's invariably and some will go and some will not go, but the market is suggesting there's invariably 3 million sq ft of entitled supply coming into the market in the next three to four to five years. Our Phase 2, which is just under 1 million sq ft, falls into a timeframe where for a period of time that we predict we're timing perfectly in terms of when things will come back in Q1 and Q2 of next year, will be about the runway time of when a lot of these larger users or even kind of half building users. Our buildings are rough numbers, 300, 300. There's three buildings. In totality, it's almost 1 million sq ft. We've got, you know, a window of time, call it within nine months, where I hate to say it this overtly, but we're kind of the only game in town. Other developments have been pushed out, delayed, haven't decided to go SPAC, and we're really in a perfect place with the mousetrap that Bianca's described to capture a lot of the impending demand and the demand that's out there today. Okay. Well, I thank you all for preparing and being on the panel and hopefully we answered a lot of questions for everyone. We are gonna have a Q&A session. You can ask more questions of either John, Eliott, or me or the panelists. Thank you very much. Thank you. Let me see. All right. Hey, Rob. Hey. Okay, before we start this, I got to tell you that there's a lot of rock stars at Kilroy, and a couple of them are in this room. A bunch of them are in this room. Will the Kilroy folks just stand up for a second? That includes you. Come on. That includes you. Well. Yeah, I'll tell ya. The new models are so much better than the old models. Okay. Sorry to steal your thunder there. No, no worries. Well, hi, everyone. I'm Taylor Friend. I am the corporate treasurer, and we are now entering the last panel, which is the Q&A forum. Up with me on stage to my left, everyone knows, is John Kilroy, Eliott Trencher, and Rob Parrott. Before we get into this Q&A forum, I just wanted to say thank you for all the engagement and participation for the question submissions. We had a ton of questions, and I can assure you that when I went through and pre-screened them, I wasn't just gonna throw softballs at you guys. Let's get into this. The first question comes around headlines about tech sector layoffs and relevant downsizing plans. How is Kilroy thinking about this dynamic as it relates to broader office demand across Kilroy markets? I'm gonna let Rob deal with that in a second, but I want to remind everybody that you never know when it makes sense to develop or not. You're always prepared to develop. So far this year, as we've announced, I think most recently on the last quarterly conference call, that there were two major projects that we have put on hold. One was Santa Fe Summit that we anticipated being under construction on sort of mid-year. We're fully entitled. We have our permit. That's 650,000 sq ft down in San Diego, two phases. Stadium Tower, where we're ready to go, we have building permits and so forth, and we put that on pause as we watch what's happening in the market. Number one is making sure that you feel good about building into a market that's strong versus the opposite. Rob, do you wanna talk about the rest? I'd say a couple of things about layoffs and how we look at them. I mean, obviously it's a serious thing, and we consider it deeply. Using Amazon today, for example, who announced something up to 10,000 people, you know, looking through what the employee announcement is, it's one thing what the headline says, but then when you look through what the employee announcement to employees is that a lot of it's HR staff, a lot of it's related to retail, some of it's engineering, and it's, you know, hours old, so it's very hard to determine what that is. I think the big headline grabbers have been Twitter and they've been Meta or Facebook. I would say those are unique to those firms. I mean, there could be other firms that end up in issues, but you have one where a you know billionaire bought the company, took it private, and the other you have, you know, someone's vision at Meta for a metaverse and poured a ton of money into that vision, and it wasn't generating profit. I think in those cases, which have been big headline grabbers, you have to take that with a grain of salt. No doubt there will be space on the market. I'd say the last thing, these are very fresh conversations I have, John has them, is that no doubt with these layoffs, it's putting, so to speak, the fear of God back into employees. What we've heard already preliminarily is that some of the layoffs happening are, guess what, the remote workers, the 100% people that are remote working somewhere in a totally different state than where their company operates. I think there's gonna be a lot of good information that flows out of this. I think, and I know John believes, the biggest driver of bringing people back to work, I think, is gonna be the fear of losing jobs. Yep. The next question is, how is Kilroy thinking about capital recycling opportunities? Specifically, would we rather sell a good asset at decent pricing, but then have a reduced overall portfolio quality? Would you rather part ways with a lower quality asset at more challenged pricing levels? Kind of a trick question. Is this on? Can you hear me okay? Just quickly back to that, onto what Rob said in the last thing. I always talk about a portfolio being both offensive and defensive. Offensive when it's a great market, people are gonna wanna be there and pay the highest rent. Defensive, it's great product, they wanna be there, and you get a choice whether you wanna meet the market or not. With regard to the disposition or the asset sale side, obviously, you'd always rather sell the lower end of the portfolio, but that wasn't the case when we sold the Dropbox buildings. Arguably, the best building in all of the city of San Francisco, or certainly one of them. We couldn't see how we would add more value there. As time has gone by, I think all of us have recognized that their financial position, while it's still very good, it was a laggard compared to most of our high quality investment-grade tenants. It made sense to sell a fabulous building, and of course, that was an all-time high price. We will look at selling assets. We prefer to sell assets that are no longer strategically important to us. As specifically with regard to do we sell top-flight, well-leased, high quality tenant buildings that are relatively new, it's not my preference. Remember, we do have something else. We can't call it sales, we call it ventures. We have a number of assets that we're looking at with the prospect of doing ventures. More to come on that. We do not feel that we have any pressure on us, where Eliott can talk about maybe that, just with regard to the balance sheet. Yes. On John's point, and as we've thought about funding, right? We went into this year, and we told everyone, "Hey, we're gonna sell $200 million-$500 million of assets." Ultimately, we sold $50 million, and we pivoted. Why did we do that? Well, we surveyed the landscape and said, you know, this is not the right environment for us to try to get a lot of sales done. We don't think that's in the best interest of shareholders. It kind of goes back to where John started it. We try to come in with a flexible and open-minded approach to everything we do. If we're gonna be overly dogmatic of it has to be this or it has to be that, I think that's where you're more prone to make a mistake. Same thing as on the asset sale side, on the funding side. As we looked at the lay of the land, we said, "You know what? Better off to try and raise some capital via a term loan," which Taylor and his team kind of led those efforts. We had very successful execution there. More than replicated the liquidity we would've generated from our dispositions at a better, you know, all-in price. We had the balance sheet to kind of withstand the incremental debt. Now, you know, 75%-85% of our development pipeline of projects under construction, we have between a cash and term loan proceeds. We think we've set ourselves up in a way to maintain that flexibility and have that optionality for whether it's how we fund something or how we raise capital, it just gives us more options. Great. Going on the next question. Can you talk a little bit about the Flower Mart site and how that project fits into your future developments? Well, everybody knows the Flower Mart was a very difficult project, as were all the others in that Central SoMa area to get approved. We're approved for roughly 2.2 million sq ft of office space, fully improved. There's no more discretionary approvals or anything else that are necessary, so we have the largest approved project in the city. It certainly doesn't make sense to go build a spec building, whether it's in San Francisco or anywhere right now. During the COVID period, we very successfully were able to work with the city and receive full approvals on a rephasing plan. There are four buildings in that project, and they're all ±500,000 sq ft. Before, there was one. There were three buildings, and one of them was roughly 1.1 million sq ft. Is that right, Rob? Roughly 1 million sq ft. We're able now to do bite sizes, which we like. We are in the process of building the new Flower Mart for the vendors, and that will be done, Bianca, roughly? 2024, late 2024, something like that. Or maybe it's earlier 2024. We scrape the buildings that are the current Flower Mart between Fifth and Sixth on Brannan, and we're ready to go as soon as as the market dictates. It's like we do on all of our properties. We wanna be shovel-ready, entitled, know what we're gonna build, know it's the right kind of product, and be able to go. That's exactly what we did back in 2012. We started preparing ourselves in 2009, 2010, 2011, to be able to really hit the gas on development when it made sense. That's all the development that you saw on the screen that I was, you know, presenting earlier. Great. Just keeping on the Flower Mart site, has there been any specific design changes brought by the pandemic or any shifts in design or shifts in demand that we've catered to with that project? Well, I spoke to the fact that we went from three to four buildings demand-wise. I mean, we can do life science there. I don't know if life science wants to be there at this point. I'd ask Scott, you know. Our view is optionality. We can do projects for office, we can do projects, and that's tech or other. We can do life science if that became the need, you know. Other than that, from a marketing standpoint, Rob, you can talk about that. Well, I think back to the point John was making, the redesign that we've done and looking at more bite-sized pieces, if you will, although 500,000 sq ft is not really bite sized. By having smaller units that we can build allows us to go after what we think the market will be like when things start to improve and come out. You know, I'll finish. I mean, you can never discount San Francisco. It has had its rough spots over time, but then you look at Google just taking 300,000 sq ft of sublease space for their cloud services in San Francisco. Things happen quickly. They just haven't happened yet. I had a meeting a couple of weeks ago with one of the top, most highly recognized VCs. They asked for the meeting, and all their inquiry was, "Tell me about the Flower Mart. When will it be ready?" I don't know what their plan is. We didn't get into that. You know, we'll see what happens. We always said it could be this past cycle or it could be the next cycle, and so we're well positioned for it, and we're gonna market it to companies that make sense and that have balance sheets. I love companies with balance sheets. Great. Shifting over to the Austin market, post the Indeed acquisition, how does Kilroy feel about the broader market fundamentals and approaching new investments in the market? I mean, you heard us talk a lot about Austin here. Clearly, it's something we're excited about. We wouldn't spend this amount of time, bringing all of you here to have folks like Gary and others address the market if we didn't really believe in it. In a very short period of time, right? We bought Indeed in June of 2021. We followed that up with Stadium acquisition in March of 2022. We found the path to 1 million-plus sq ft of high quality, and as Jeff mentioned, off-market transactions. We think that's a pretty good playbook. If we can find more of those when the time is right and the value is right, we're going to do more. Again, it goes back to there's no target number for how big Austin is gonna be. We're not gonna just buy buildings there to put another picture on our presentation. If we find transactions that make sense at the right values, we're very committed to getting bigger in the Austin market. Just a quick one add-on to that. You've heard us speak a lot about quality and the kind of workplace people want and the physicality, the amenities and so forth they want. We're not gonna be buying buildings that don't have that kind of locational advantage and the bones. There might be an older building that you can fix at a reasonable cost, but if they don't have the bones to become a modern space, we don't want them. I think as I look in Austin, it is like a lot of markets, it's much more mature now than it was 20 years ago when it was building buildings. I think a lot of those commodity style buildings will do well when the tide's always high. They may not do as well when the tide's a little lower. I can tell you that in the context of the stadium, we're in discussions with somebody that wants it all, and they happen to be in an older building, and they just go, "It's. We can't compete long term for the workforce that we want with the facilities we have. We need the kind of thing that you're gonna develop." I wanna, we'll say one other thing about, Eliott, I guess you were saying about we've done 2 buildings so far. We're ahead in Austin, where in, compared to San Francisco, Seattle, San Diego, way back when we bought there. We're ahead in this context of what we have and what we control and, more importantly, the team that we have in place. Fernando is new to the team, but one of the brilliant guys. Some of the people in the market said to me, "How did you ever get Fernando?" I don't want to put too many feathers in your cap. He's a very modest person, so I don't think it'll go to his head. Well, with regard to the construction development group, with regard to asset management, we've taken people. By development, office life science. We have taken people that were embedded in Kilroy that are fantastic superstars headed for, you know, I guess, all our jobs at some point. We have that embedded in Austin. We're not there to be a one-off or a two-off. We're gonna grow over time, significantly in the Southwest, maybe the Southeast. We're not there to play. We're there to win. Well, thanks. I think that's a great way to end the Q&A panel. We're good. Is that it? Thanks a lot. Well, I'll tell you. I got to stand up to say this because I want everybody to you know kind of not look at these young guys. Look at me. We've had some amazing speakers today. Very prideful of the group on the Kilroy team. I'd like to give a resounding applause to Gary Farmer and to Troy and Scott and Lindy. Okay, Shannon, we got a few other little things that go on. Somebody earlier said to me, "Gosh, remember that really cool thing you had in LA and the Fender guitar and all that kind of stuff?" I just had to resist smiling. Shannon Kanuk, do you need me anymore or no? I sure do. Oh, you do. Okay. I do. That concludes our audiocast portion. Thank you for those that joined us.