Good. Okay. If we could ask everybody to wrap up grabbing your refreshment or whatever you're getting and we'll sit down and get going.
Right now, we're, I guess, 10 minutes late and that means I have to talk really fast because I made everybody swear they'd stay on time, and I guess that means I have to as well. So welcome, everybody. I'm sure we'll have some stragglers coming in. Is somebody going to help them sit down, Michelle? I guess okay, great.
So you might notice that you have a little hat here. And as they may have told you when you check-in, they come in, I think smallmediumandmediumlarge. I happen to wear a mediumlarge. If the hat doesn't fit, you trade it with somebody else or talk to one of the young ladies and we'll make sure you get one that fits. I'll let Tracy tell you about the logo.
So a couple of things here that I wanted to go over with excuse me, I'm just going to get my pages correct here. So first, I want to thank everybody for being here. We're excited to be in New York. We're excited to have this beautiful day and we're excited to make some announcements that you saw this morning and answer questions, which we'll do Q and A in the tail end of this presentation. We're going to have 3 or 4 of us present, and then we're going to have a break.
And then there's going to be a little bit of a panel discussion. We have some terrific guests, and I'll let Elliot announce them. With me today, I have 2 Board members. Jolie Hunt, where are you? Somewhere?
She's over here. Jolie, thank you very much. And Gary Stevenson, where are you, Gary? Over there. Well, great.
They both live in New York and they asked to join and we're delighted to have them. They're 2 very active and very independent board members. With us today from the management team is Jeff Hawken, our Chief Operating Officer. You can all stand, sit down. Tracy Murphy, Executive Vice President of Life Science Sarah Neff, who's our Senior VP of Sustainability Michelle Ngo, Senior VP and Treasurer.
Most of you know Michelle Rob Perrott, our Executive Vice President of Leasing and Business Development Tyler Rose, our CFO Steve Rosetta, Chief Investment Officer Heidi Roth, Chief Accounting Officer Yolanda Gonzalez, who coordinated the meeting for us today. So thank you, Yolanda, and again, welcome, everyone. Our goal today is to provide the investor and analyst communities with an update of what's going on at Kilroy, how we see our business, how we are progressing on the various initiatives we've laid out over the last year or so, and what we see as key drivers of growth for the company in the years ahead. Most of you are familiar with the transformation that Kilroy has undergone over the last 6, 7 years, 8 years almost now. We think we've become the elite West Coast REITs.
Others may disagree with that, but I think that's probably true when you look at the scale of our activities and our development. The evolution of the portfolio, I think, has been amongst the most profound in the REIT space. I think we have the highest quality and most sustainable properties compared to anyone else. Our capital allocation, Tyler is going to talk about that and I will as well. The management team, I've got a few slides on that.
I want to show you what we've done from a management standpoint and how we look at managing our enterprise as we go forward. Tyler will talk about the balance sheet, which we will continue to keep very conservative. And then how we're positioned positioned rather for growth. The transformation, so many of you at NAREIT or other investor presentations have seen earlier versions of this. This really looks at December 31, 2009 and compares it to today.
So if we take a look at it, we were 100 percent Orange County. Today, we're 46 100 percent, sorry, Southern California. Today, we are 46% Southern California. And of course, San Francisco has become the biggest region. Seattle is growing as well.
And if you look at NOI, it's gone up about 3 40% over the course of that same period. Again, when we look at the transformation, there's been this amazing shift towards more innovative, more vibrant properties and so forth and dealing with growing industries. And if you think about Kilroy, we are the provider to tech and to media and we still have quite a bit of fire category. But if you look at 2,009, the manufacturing, the 18%, that was our industrial portfolio that we sold off and recycled the funds into our development activities and our acquisition activities. Tech was 11% in 2,009.
Today, tech is 43%. And if you look at the breakdown of tech, you see cloud, software, social media, tech services, Internet, hardware. If we broke it down even further, you would see auto tech, fintech, medtech, and there's going to be all kinds of tech techs that we're not even talking about today because what's happening is this incredible spawning nature of technology is that we're seeing new companies all the time arrive on the scene and become users for space. And then if you think about our portfolio evolution, if you think about our core portfolio that we had in 2,009 and those assets that we acquired, these all happen to be assets we acquired, you can see on the upper photos the way they looked when we bought them and the transformation that's has occurred, in this case, through the lobbies. But that same transformation has occurred through the occupied space.
So what you see here is vibrant, dynamic, people oriented spaces, far more like hospitality than office, far more about the person or the company, far more inviting. This is the kind of space that people want. And if you think about what we've developed, we've developed best in class, world class assets that are leaders in lead, that are leaders in wealth, that are leaders in people, amenities that are next to public transportation, that have all the types of things, including art in public places that the modern workforce wants. And so our and on the left here, you see Columbia Square. In the middle, you see Salesforce's headquarters at 350 Mission in San Francisco.
And on the right, you see Crossing 900, which is the headquarters of Box down in Redwood City. Again, about the evolution, younger, higher quality, more sustainable and we think positioned for the future. We've talked a lot about as an industry and by the way, all these slides are going to be available to all of you. It's all being webcast as it is. But we've talked a lot about over the years in NAREIT and so forth how the office space, in many cases, is becoming obsolete.
We find the buildings that have granite on the exterior are not nearly as attractive to our client base as buildings that are more vibrant and more edgy. The same thing with the interior. And if we look at the age of our portfolio, 8 years ago, it was average 15 years. Today, 8 years later, it's an average of 10 years. What happened?
Well, little development, little redevelopment, but you get the idea. And in terms of urban centers, you see the walk score and the transit score and the bike score, all of which are important things for the human resources departments of these companies we lease to and what they are today. And you see on sustainability, the commitment we made from being kind of a minor player to being number 1 4 years in a row in North America and number 5 in the world. Again, about the evolution, if you look at the average age of the portfolio of Kilroy today versus our West Coast peers, the urban center scores. If you took San Diego out of the urban center scores on Kilroy, we'd be 5 to 10 points higher than the numbers you see here.
And again, on sustainability, far greater commitment to that area. Capital allocation, many of you know this is one of my 2 or 3 favorite slides. It shows you what we have done over the years since we became public roughly 21 years ago, when we acquired, when we developed and how we've recycled capital through either direct sales dispositions or through ventures into these new activities. And on the far right shows you the amount that's occurred in this cycle, the great majority of it. And you can see that we have acquired very little over the last couple of years simply because we didn't think it made sense.
In terms of capital allocation, if you look at we are very committed to value creation. We're committed to growing our FFO. And if you look at adjusted FFO per share, it's grown 2% during this period against our peer group at 24%. If you look at our NAV, it's almost 3x as great of growth as our peer group. Management team.
May say Kilroy on the outside, we know that the shareholders own it, but within Kilroy is a management team. This is the management team in 2010, the very senior people in the company. And we have one regional office, which is San Diego. Of course, we had many project offices. And if we look at Kilroy today, we obviously have had some additions, but the folks that were there in 2010 are still there today.
Jeff has been my partner for 47 years or rather for 37 years. Justin Smart, who runs all our development, 28 years. Tyler Rose, 21 years. John Fauci runs Asset Management, 21 years. Heidi Roth, who's our Executive Vice President and Chief Accounting Officer, 20 years.
Michelle now, she's one of the junior kids, Senior VP, 12 years with KRC. And of course, we've added over the last few years, Rob Perrott Tracy Murphy, who runs the life science activities for the company and Steve Rosetta as Chief Investment Officer. We now have 4 regional offices. And what this slide doesn't show is we've gone from 1 female senior VP to 4, and we've gone from, I forget the number, but I think it's from 4 senior VPs to 23. We're very serious about the way we manage the company and the way we take advantage of that opportunities and the way we position ourselves for the future and the way we execute.
And you've seen over this last few years us come on stream with $1,600,000,000 of development that was below budget and on time, and we want to keep producing results like that. Best in class balance sheet, you've all seen this slide, this is my second favorite slide, with net debt to EBITDA and net debt to total capitalization. We might move around a little bit on the left side, but we're not going to move to the right side. That's the danger zone. I don't want to be there.
In terms of recent updates, we announced this morning that we had done, what was it, 907000 square foot of leasing in the past month, 1 163,000 square foot of that was a renewal of Adobe a couple of years early for an 11 year extension in Fremont, which is South Lake Union, 145,000 Square Feet Lease with General Atomics, which is now the leading designer and manufacturer of drones for the U. S. Military. Net backfill is roughly 50% of the Bridgepoint space out on the I-fifteen in San Diego. 136,000 Square Foot Lease OR Building 360 Third Street, Gary Earle building.
Gary is the President of Major League Soccer Ventures and used to be the senior person at Pac-twelve Networks and was actually in 363rd Street. We also announced a 375,000 Square Foot Headquarters lease with Cruise Automation on a 12 year term and that's and the brand of properties that I'll talk about in a sec. So strategic transactions, we acquired Oyster Bay. Tracy is going to talk about that in a few moments. We commenced construction on the balance of the residential units down at 1 Paseo in San Diego, and we're under contract to acquire 345 Brand Street for $146,000,000 345 Brand Street is adjacent to and actually connected with our 333 Brand Street, which is currently both of those make up the current headquarters for Dropbox.
And as you know, they're moving to the exchange later this year and into next year. So this is a case study. This is one thing I would like to we don't often talk about how we work towards harvesting value within the existing portfolio. Frequently, we think of that as the building comes vacant, you lease it at a higher rent, hopefully, and you create some additional value. This was something that, as a result of I think it was Dropbox, once they decided to go public, they changed course.
When we did the deal on the exchange, they told us they thought they would keep the branded buildings and sublease them, but have them in their control for future expansion. That changed. And they decided they would sublease those buildings, which would have had about 9 years of term left once they moved over to the exchange. But we got the idea that it would be helpful for Dropbox, in all likelihood, to get a return of their letter of credit, which was substantial, and also to get clear their books from any obligation for sublease whatsoever. So we came up with an idea internally that let's try to find a tenant to do a direct deal with us at a higher rent, hopefully with better credit and for longer term.
And that's what we did. So if you see on the map here, you'll notice the red, which is the future flower market, it's just a couple blocks away, and you see yellow, which is 3, 4, 5, Parana, and by the way, in the lower left hand corner is the AT and T Giants Stadium. So this was the idea. Let's figure out how to the building on the left is the one we own, the building on the right is the one we're going to acquire later this year. We decided, let's buy that building.
We're buying it for $146,000,000 and we think it would create significant synergies between the building, which has come true. And so this is where idea becomes reality. So GM Cruise signs a lease last Friday, or I guess it was the Friday before, for a new headquarters campus, which is made up of 301 Brannan, which is a building we own, which is coming up in a year. That's where Octave is located. It comes up the end of this year, end of next year, end of this year.
And crews will then occupy that building, and then the drop box will move out of 333 and 345 in late 2019, and the cruise lease will start. So this is the lease economics. Think about this. We did this by the way, 333 and 345, we designed that and leased that to Dropbox as their headquarters, they've been in it for about 2 years. So call it 3.5, 4 years ago, we built that and negotiated those terms.
And of course, they've had some escalations along the way. So what does this do? It extends the term. Rather than 9 years remaining with Dropbox, we now have an additional 6 years remaining across the average of the 3 buildings. It increases the annual NOI by roughly $5,000,000 $7,000,000 on a GAAP basis over what the in place rents are today.
In terms of Cruise, we have the guarantee of GM, which is their parent. And if we think about what Cruise is today, it's, I think, the largest and predicted to be well, I don't know if it's the largest because you have the Google enterprise, but it's solidly financed with GM Credit and GM owning it. You might have read that SoftBank just invested $2,250,000,000 into CROs. GM put in another $1,000,000,000 originally when they bought it. And I can't help but say that you might remember a couple of years ago, 2.5 years ago, I began to talk about how we were going to see all these new kinds of tech, and auto tech would become big.
I think a couple of people from time to time would look at me and scratch their head and go, well, maybe, maybe not. Of course, we all know the story now, but if you think about it, today, 8 of the top 12 independent autonomous car companies are located in the Bay Area, as are all of the major corporates focused on that space, Uber, Tesla, Google, Apple. Corporates continue to invest billions in driverless cars. Late 2017, Uber spent $1,200,000,000 buying a fleet of Volvos to test driverless car technologies starting this next year. Late 2017, Google disclosed that it spent over $1,000,000,000 between 2,009 and 2015 on driverless car tech.
And in March 2017, Morgan Stanley analysts estimated that Waymo, Google's autonomous car program is worth at least $70,000,000,000 This is a major industry, gentlemen and ladies, major, major industry and it's centered in the Bay Area and it's going to grow. And it's but one more example of how technology is disrupting sort of state industries and why are they in these clusters, whether it's in San Francisco Francisco or Seattle or LA or wherever it might be here in New York as well, is because it's where the people that do all these brilliant things want to be. It's where the workers are. If we move to the markets, Rob Perot is going to get up here and talk about that. And Rob, you're on.
And I think I was a minute early. I'll have to try to beat
that. Thank you, John. Good afternoon, everyone. My name is Rob Farhat. I'm an Executive Vice President at Kilroy Realty.
I'm responsible for our leasing and business development activities across the platform. One thing I was thinking of while I was preparing for this today is how similar our roles really are. All of you in this room spend a good part of your day assessing risk. You're understanding companies, and you're trying to understand what's the new best thing. We spend a lot of time at Kilroy doing that as well.
And I think probably foremost in all of your minds, based on the questions I've gotten over time at NAREIT and we get together as an executive team is, how much longer is this going to last? And it in my previous role at Tischen's Fire overseeing global leasing, I had the opportunity to see a lot of dynamic markets. But I have to say, I've never seen anything like this, and the cycle has room to grow. I'm going to walk you through why we feel that's the case. So technology and media are one of the focus areas of our company.
Why? Because it's been a growth engine for a lot of the country, I'm trying to keep paying attention to you folks over here, too. The disruptive nature of the industry, business changing constantly, morphing, having to stay in a competitive role. And the M and A cycle, we don't see any let up in, has led to huge credit enhancements not only across the country but in our portfolio specifically. So this is just a little bit of a plate setting, I guess, for you.
Obviously, technology and life sciences, health care have been the economic drivers over the last 10 years and particularly over the last 5. Truly incredible when you compare it to the S and P 500 and the industrials. This is a bit of history, but we're going to move to the future as well. I actually really love this slide. If you look at the column in the 2000 category and then jump ahead to today, look at the market cap, double, more than double in every case and look at the change in these companies.
I remember in 2000, one of the best amenities a developer could market in an office project were corner offices. And I remember a big push for developers to develop buildings with 12 corner offices per floor and you'd get into discussions with tenants about that and the views, look at the Bay, look at Alcatraz, look at the Empire State Building. Fast forward to today, if you start talking about corner offices, the conversation ends immediately. What companies want are the types of space that Kilroy is building and that Kilroy is known for, which is creative space that helps these companies attract and retain the absolute best talent, and there is a war for talent. Large Cap Technology employees, again, you look at a graph like that, everyone can worry what happens, does the arrow go down, does it continue on the same trajectory.
I'll tell you in Kilroy's markets right now, we're tracking 95 deals over 100,000 feet from San Diego to Seattle. That translates into 9,500,000 feet of office space and somewhere between 25,301,301,000 employees. And that's just a snapshot today. That's what's going on today. What's going to happen next quarter and the quarter after?
This is a great slide. John touched on a lot of these segments of the market. You have MedTech, which I call basically Cisco or IBM Watson providing service to healthcare and life science that's in its infancy. FinTech has had a few ups and downs, but it's here to say, when you start seeing Goldman Sachs starting to underwrite and get involved in Bitcoin. Auto Tech, John hit on it, the big names, there's Waymo, there's Cruise, every tech company is in some way getting involved.
But think of the companies below the automobile companies, below the autonomous vehicle manufacturers that are benefiting from this. There's Bosch Electronics, there's handfuls of companies that are supporting these this new industry as it evolves. And I again, I stress this slide is a snapshot in time. No one here can predict what this is going to look like 2 years from now. If we do another Investor Day, we should do a side by side to look at how these segments have changed.
I want to give you a little example. I like I'm a visual person, and I know a lot of you can't see this in the room, but I'm going to hold it up anyway. This is a mailing envelope, and this happens to be a DVD for Beetlejuice, and it's a Netflix mailing envelope. And I don't want you all distracted wondering why Perrot in the world has a Beetlejuice DVD. But think back when Netflix started, the technology component of that business then was you'd go online, you'd rent a movie, and it's Friday night, but the movie doesn't arrive here your postage paid right here, the movie doesn't arrive till Monday, then you have to figure out when can I watch it, and then you have to mail it back to Netflix to make sure you don't get the late charge?
It's truly an amazing evolution. And then you look at Netflix today, the market cap surpassed Disney. It's truly an amazing company and there are others following it. And you'll hear in my remarks later about some of our markets, how the whole entertainment industry is changing as well as the technology format. This is one of my favorite slides near and dear to my heart.
I sort of look at the left side of the slide as the parents and the right side of the slide is the siblings or kids. If I were a private wealth manager, I'd be spending time with both, and that's what we do. I think one of the things that really differentiates Kilroy from the competition in terms of our space is the amount of time and energy and resources that we put into daily understanding what the companies that do business with us need, understanding where they're going and understanding how we can be there to capitalize on that. The companies on the right, you can't ignore. So we're doing that as well, and it's a passion of mine and I'm proud of, over my career, the relationships I've built.
But I have to tell you, John Kilroy loves these meetings as much as I do. We go meet with the heads of corporate real estate for some of the largest technology companies in the world. And we've actually become developed a role as a trusted advisor. They often ask us, how do you do a roof deck? How do you accommodate that many people on a roof deck?
Can you share some of your construction expertise with us as we try to develop our campuses into state of the art facilities that allow us to attract and retain tenants. And I would say my colleagues here today, each and every one of them have deep contacts as well. And I think that's one of the most fun things about Kilroy is we're able to leverage off each other to get in to see almost any company in the world. And this is where you learn the last recession. We have warning signals of when that was going happen.
There are certain elements that happen that you hear about and they start adding on to one another. These meetings are key for that. And that's when you start learning about there may be a slowdown. And what I'm going to tell you based on the meetings that we've had just in the last 3 months, 6 months to a year, there's no let up in sight. These companies are hiring and they're hiring quickly.
Right now, if you just look at again, the percentages seem so small when you look at how many jobs have been year over year job growth. In Los Angeles alone, 97,000 jobs, tech related jobs over the past year. San Francisco, 50,000 Seattle, 50,000. Those are high paying jobs, a lot of money, a lot of talented people and again, I keep saying, it's all about the employee. I think if any of you saw the news last week with Google and Maven, their division that was working on artificial intelligence and had a contract with the Pentagon, they suspended that contract.
They did it because 4,500 Google employees signed a petition that they didn't like Google, whose motto is don't do evil, they didn't like Google working with the defense industry. Someone else will take that business up, but I think that example really points to the power of the employee. I don't think any time in any of our careers you could have an example like that where basically employees unless they're maybe unionized, have that kind of voice. This is another really important slide. I said earlier that the merger and acquisition business has had a tremendous impact nationally, but it's had an even more important impact on Kilroy.
These are all of our tenants here and you can see over 440 acquisitions, dollars 158,000,000,000 I mean, just think of that. And you look at our situation, we had LinkedIn, we were happy to build their headquarters, then Microsoft buys them. We have Apple, we have So I'm going to just touch on a few regional highlights, and keep it big picture. There'll be questions a question and answer later that we can go over. So this is Seattle.
We have a development project underway, 333 Dexter, 650,000 feet, we're just at ground level. I'd say that South Lake Union and Bellevue, which is another suburb in Seattle, are the 2 strongest most dynamic markets in the country, vacancy sub 5% in the case of Bellevue and 1% or less in South Lake Union. The most interesting thing to me is that South Lake Union traditionally was home to Amazon, that's what everyone it was Amazon's headquarters. But if you look at it now, it's dominated by Google, Facebook and others and there's a big competition for space in that submarket. San Francisco, I don't know what to say, there's 9,000,000 square feet of demand right now that we're tracking.
There are 43 deals of 100,000 feet or bigger in the market right now searching for space. And given the circumstances with Park Tower now leasing to Facebook, there's virtually no space left in San Francisco. Now and then an opportunity comes up like our Dropbox Cruise deal, but tenants are in a state of having to act quickly in order to lock in whatever they have, whether they're renewing an existing space or having to renew in an existing space and take another space until the next buildings deliver. And I think our Flower Mart project is poised perfectly. And John and I, as well as a couple of other members of our team have had discussions already with folks about the Flower Mart, about our timing, and these are large scale users, they're planning that far out.
You usually don't see that kind of planning that far out unless you're in a city like New York, that's hit the West Coast now. Hollywood, Los Angeles. Los Angeles is the largest economy on the West Coast. As I said earlier, 93,000 jobs last year and this year. Its resurgence is driven, I think, largely by content, production and media companies.
And it's truly fascinating to watch these companies come in and look at Amazon coming into the market, Apple coming into the market, Netflix, Hulu, the list goes on and on. And the real scramble is actually the legacy media companies. They're trying to figure out how do we compete with these young upstarts. And I think on the M and A slide that I talked about earlier, the way those companies, legacy companies are competing, they're competing by buying existing companies rather than trying to grow organically. It just takes too much time given the pace of the world today.
San Diego, no laggard. There's a big uptick in defense spending. We're seeing that spillover into San Diego. As John mentioned, we did the General Atomics deal. We're also seeing tech companies looking and taking space in San Diego.
Amazon just took about 500,000 square feet near our One Paseo project, which we haven't started the office space on. And life science is a key driver to that market also. Tracy will talk about it more, but we're in a 2% vacant market as far as life science goes. So between technology coming into that market, life science coming into that market, San Diego is something to watch. And if you really think about it in terms of patents, patents San Diego follows San Francisco and Silicon Valley in California in terms of numbers of patents that have been generated out of there.
So really great school systems, it's a little bit cheaper for employers to have folks there, but I would say for the most part, employers aren't really worrying about what rent is and what it costs to attract and get the kinds of tenants that they want. So as I said, and I'll circle back, I think that we had a lot of warning signals in the last downturn. We're not seeing anything like that. We're seeing the opposite. And I think that Kilroy is perfectly positioned to ride this wave as long as it lasts.
So with that, I'm going to turn it over to Jeff. Excuse me, one more slide, forgot. And when I said that rent is a small component of the overall cost structure, these companies are trying to do. Look at Hong Kong, look at New York, you're in New York. Sao Paulo, I remember when I was at Tishman, dollars 1 $75 a foot for Class A space.
And I'd argue that a lot of the value, the value is in U. S. Real estate and particularly on the West Coast, the type of product that's being developed. A Class A building in Asia does not have the same attributes that a Class A building in the U. S.
Has. So I think you look at this chart and you look at where these companies need to be, the West Coast has a lot more room to go. So that's my recap. I'm now going to turn it over to Jeff.
Thanks, Rob. Good afternoon, everyone. It's great to be here in New York. Hello. My name is Jeff Hawken.
I'm the Chief Operating Officer for the company. As you saw one of the earlier slides, I've been with the company 37 years. In fact, in 2 months from now, in August, I've been with the company 38 years. So a fun fact is I've been with the company longer than I haven't been. I went to work for the company right out of college and had the benefit of a great mentor, John Kilroy.
I started in the finance group, was a financial analyst, headed up our job cost accounting, loan administration. Then I moved into property asset management, ran all of our properties, got involved in leasing, got involved in acquisitions, dispositions and pretty much everything else. So as you can see, I really grew up with the company and had the privilege of partnering with John and the other team members for almost now 4 decades. I know most of you are familiar with our numbers, but what you may not be familiar with is the emphasis we put on team and employee engagement. It is important for us to focus on our culture to ensure that we can attract and retain top talent at all levels of the organization.
As you can see, we currently have 270 employees, almost doubled from 2010 before we expanded into San Francisco and Seattle. You can see from our promotion stats that approximately 20% of our workforce has been promoted per year over the past 5 years. This demonstrates that we have a very ambitious workforce who wants to move up in the organization. Culture is extremely important here at KRC. We really focus on this aspect as it really is why we have so many great employees who have stayed at the company for years, and in many cases, decades.
Communication is a key to keeping employees informed and connected, and we also have a committee that is comprised of representatives in all of our departments of the company. We have found this to be an excellent way to keep employees engaged in ongoing discussions. We frequently have community service days where employees get together for the benefit of the community. An example is working together at cleanup Beach. These activities involve not only the employees but their families.
Career development. This includes mentoring, training and overall employee satisfaction. We have a saying here that if we don't focus on our employees and provide a cheap advancement here, then they will advance elsewhere. So beyond providing great benefits in a wellness program, we really invest and empower our team to succeed. We frequently put on training seminars and let many of our team members actually teach and moderate employee panels on different aspects of the business.
This includes leasing, construction, asset property management, accounting, finance and legal, again, all working together as a team. Developing a world class company takes a continuing commitment to our team and good governance. 57% of our employees are women. We have female representation at both the executive management level and the board. As John mentioned earlier, we have Tracy Murphy, who will be following me today.
We've got Heidi Roth, our CAO. We've got Michelle Ngo. We've got Siranaf, you'll be hearing from later, on sustainability and a whole bunch of others back up and down the coast in our properties. We've got 39% ethnic diversity among our employee base. You also see that we have strong corporate governance with a declassified board with 60% of our board members having joined the company over the last 4 years.
And we're also proud to have recently established a corporate social responsibility committee headed by our board member, Julie Hunt. Thank you, Julie. So what does this all mean? Since 2010, the results are pretty impressive. We've signed 20,000,000 square feet of leases.
We've completed $2,900,000,000 of acquisitions. We've commenced $3,500,000,000 of development. We've sold or ventured $2,300,000,000 of assets, and we have the best in class development pipeline. John and Rob talked about the quality of our submarkets, but this puts some numbers around it. Based on 3rd party broker estimates, our submarkets have asking rents 12% higher than the overall market in which they are located.
As an example, in San Diego, our properties are concentrated in infill submarkets of Del Mar, which has Class A asking rents around $50 The overall San Diego region has asking rents of about $40 so the KRC markets have approximately $10 premium. 7 submarkets in this slide represent twothree of the KRC portfolio. You can see that KRC is beating the vacancy in all of the markets pretty substantially. The only exception is in Bellevue, and that is only because the 28 exploration, 111,000 square foot exploration expired in the Q1 of this year. The good news is 70% of this exploration is already released, and we have good activity on the balance.
This slide shows that both our last 12 months NOI and EBITDA margins are extremely strong among our peers. These results are driven in large part because of 2 factors. 1, we have high quality assets that are able to drive rent high rents and 2, we have professional property and asset managers, and that, combined with our sustainability initiatives, help manage and reduce operating costs. So leveraging our scale. Our strategy has been to concentrate our portfolio in the best markets and submarkets.
And in addition to benefiting from the best rents and lowest vacancies, there are other advantages that come with having this scale. By culminating growth, I'll give you two examples. We've heard a little bit about Dropbox. We built the 333 Brannen for them. We expanded into 301 Brannen, then into the exchange without terminating their existing lease and then finally creating a win win with the cruise deal that John discussed.
And second, AppDynamics is a tenant at 303 Second Street in San Francisco. We signed their first lease for 10,000 square feet. They subsequently grew to 150,000 square feet, and then they were bought by Cisco, giving us credit enhancement that Rob showed on his presentation. We're very proactive in addressing expirations. We were able to terminate Bridgepoint early to accommodate the General Atomics transaction in San Diego.
And our cross market relationships, example, Adobe is a tenant in Seattle, we were able to expand and move them into San Francisco. These kinds of transactions are ways we can harvest value within our existing portfolio. So at our Q1 earnings call, we reported that we had leased 705,000 square feet with strong change in rents at 13% on a cash basis and 28% on a GAAP basis. And in this last month, May, we did another 945,000 square feet at 6% cash and 26% on GAAP. So year to date, and it's only June 4, we've done 1,600,000 square feet, 6% cash and 24% on GAAP rents.
As we recall, we had 4 large lease expirations in 2018 scheduled to vacate. Twothree of the space has been backfilled before the prior leases expired in much of the remaining 243,000 square feet is yet to expire. 80,000 Del Mar expires in October of this year, 126,000 square feet in the I-fifteen quarter in San Diego in July of this year. So we continue to make excellent progress. Is our 2019 2020 lease expiration.
You can see for 2019, we've got 1,500,000 square feet scheduled to expire with 19% below market rents. And you can see that we've already addressed 311,000 square feet since the Q1 of this year. The last one in the Q4 is actually the 75,000 square feet that we talked about with Cruise. If you look at 2020, there's 1,900,000 square feet of leases expire, 18% below market. And we've already renewed 169,000 square feet again since the Q1 of 2018.
And further, in 2021, we've already renewed a tenant, 141,000 square feet, again, as of the Q1 of 2018. And finally, our mark to market rents on the entire portfolio are approximately 14% below market. So the bottom line takeaway from my presentation is we've got a great team, and we're firing on all cylinders. And with that, I'd like to turn it over to Tracey Murphy, EVP of Life Science.
Okay. So they told me not to adjust it to my mouth so you don't get the popping. Thankfully, I followed Jeff so I can leave it right where it is. Okay, so we're going to punch it up a little bit because I'm here to talk about something pretty exciting. John mentioned you've got some new logos on some new hats on your chairs and we'll get to that punch line.
But before we do, I just want to give you a little bit of an overview of the platform and what we've accomplished since I joined 2 years ago. So at a basic level, and you guys have asked me this question a lot, is why did TRI get into a life science in a more deliberate way? And I think it's pretty evident to see why we did when you look at the industry fundamentals. The most basic level, if you look at our population, it's aging. We've got stats in here and I won't bore you with stats, you've got a lot of them this morning.
So I think if you look at that basic fundamental and then what the industry and what resources have done to respond to it, it's pretty clear why we're excited about life science. You look at the way our country is spending money on healthcare is response to that and disease. You look at NIH, I think we just announced 3 months ago that we've increased the budget from $2,000,000,000 to $3,000,000,000 It's a pretty significant jump year over year. A 5 year high in D. C, so we went to $14,400,000,000 in 2017, that's a 5 year high.
And then in response to that, you've seen agency just really focus on making innovation more efficient. So the FDA hit an all time high, a 10 year high, I will say, which is also an all time high at 47 drug approvals in 2017. So you think about some of these basic stats, this is a pretty easy and compelling story to start wrapping real estate around. And what I'd like to close with before we move into more specifics about the real estate side of things is you look at where we are. People are like, we always talk about innings.
We always imply sports to everything, largely based on the audience I'm looking at. We have 10,000 diseases that people suffer from in our world. 500 of them have treatments, not cures, just treatments. I mean, we have barely put a dent in this. So if you want to pick an inning, I don't even know if we've drafted a team yet.
It is early. Going on, you've heard a lot about this. Obviously, we've gotten into life science because it's a natural extension of not only who we are, but where we are. We have a I think someone is going to share it with you today, but roughly 2,000,000 square feet and 16% of our rents. But what you'll recognize from this is not only are we already in these markets, but we have an exciting foothold in them as we continue to deliberately grow in this space.
In addition to a footprint, we've also got a pretty compelling roster of healthy tenants across all these markets. And as you read this morning, we have since added Nektar to our portfolio. Going on to the team. So we've heard a lot about the team today. Life science is no exception.
I think what I'd like to talk about in terms of our team is as you build something in life science, the long haul and the team and the credibility you surround around the sort of technical expertise around it with this type of real estate is really critical. So what this slide represents is in a 2 year span, we have assembled a really credible, really capable life science team not only has but will continue to execute. I've worked with a lot of these people a lot of my career and I'm really excited. I put this team again, Eddie. I think with this team we've become a formidable competitor in the space, which I'll continue to talk about as we go through these slides.
So leasing scorecard, this is a big one. I'll try to remember from memory some of the stats I wanted to share with you guys today. But in 18 months, essentially 2 to 3 years ahead of lease expiry, we have successfully renewed all 5 of our most significant life science tenants on a long term basis. And you can look at the stats. They all speak for themselves, but they're obviously healthy markets.
And when you're building something like this in a hypercompetitive space, being strategic about holding and growing your most significant tenants is a big deal. We're happy to announce that we've been able to do that ahead of schedule. Going forth into the growth sort of things, which is the buildup into the Oyster Point story, but we've had some other kind of milestones along the way. 1st and foremost, 2016, we bought 1701 Page Mill in Palo Alto. It was a good story, a value add story.
Some people have sort of shied away because of the broken tenancy there. We looked at it as great real estate in a great market with an opportunity. We have since executed on that story. As you heard, I think, in our last earnings call, we have assigned that lease to Stanford School of Medicine and we continue to grow our relationship with not only Stanford, but some of the units within. Oyster Point Tech Center, we announced that as well in January.
That was a strategic acquisition. You'll see the strategic nature of it as we get deeper into the presentation. But $111,000,000 stabilizes in the mid-6s, a great story. Long term tenancies on a a credit lease on a long term basis, sorry, expect that one out. Really exciting project that becomes a part of our long term plans in Oyster Point.
Kilroy Oyster Point, we'll touch on this briefly. But the reason this is so exciting is its meaningful scale that gives us a dominant presence in the hottest market from a life science standpoint on the West Coast. It was off market. It's an attractive land basis and we're really excited to show you what Kilroy is going to do to Oyster Point Waterfront. And then last but not least, we can't forget San Diego.
As Rob said, life science has been one of the darlings in San Diego. San Diego is near and dear to my heart, but I'd say 30% of the growth in that market can be attributed to life science. I mean, it is a growing phenomenon down there, startup in nature, very collaborative in nature. This product in specific location wise is in the heart of UTC, which is the heart of a heart. Chuck will probably talk about this on the panel later, but it's surrounded by the likes of Illumina, HLI, a lot of big names, sort of the main in main of what is UTC.
It's 160,000 feet and has just been repositioned to capture that growing demand. Okay. 14 minutes of life science. You guys buckle in because it's going to get exciting here in a minute. South San Francisco, so all of our markets are doing well.
You've heard that life science is no exception. Seattle, San Diego, even LA is starting to get rumblings of what life science is going to become. This market is exceptional. I've really never seen anything quite like it in my career. We've got stats up here that represent what is South San Francisco.
But if you step back and look at what is the Bay Area, what are we seeing, you heard our story in many, many months. You asked us many questions about exchange. We told you Mission Bay was constricted. There is no more supply. We're now seeing the demand from there bifurcate lab and office.
We're seeing Nektar move to south of market. That's also creating pressure down into South San Francisco. In addition to those pressures, we're seeing philanthropy, VC, NIH funding at an all time high in the Bay Area. It's top of the charts. It's also most educated cluster and I'm going to forget who to cite on that, most educated cluster in terms of all the life science clusters.
It's particularly important because that kind of deems it the mecca for talent as it relates to life science. And if you think about what Rob talked about, it really is a race for talent, which leads me into the next trend. Big pharma is consolidating. By no mistake are they doing it in South San Francisco. You're going to have a footprint in Asia and you're going to have a footprint in Europe, you're going to have one in Cambridge and you're going to have one in South San Francisco.
Those are the places you're going to be. Some of that is talent, some of that is critical mass. The other thing I would add, which I think Kilroy is really uniquely positioned to maximize on is the convergence trend. You heard a lot about what TEC is doing, what TEC is doing to disrupt. Life science is going to be part of that.
Verily, Calico, Microsoft are all committing dollars into South San Francisco to be ahead of this trend. It is a growth driver of what we've seen in South San Francisco. Okay. This is to touch on. We talked about how tight of a market is.
There's 4,000,000 feet of demand in the Bay Area. We're sub 2%. If you want Class A, you're going to be driving for hours to see a couple of options. But if you just zoom out for a second and think about life science and markets we're not in, you can see here we've got a lot of room to grow. I always say the West is the best.
Value creation on the West Coast has a lot of room. It shows here $80,000,000 I was in Cambridge a couple of weeks ago. Rents are getting up into the $90 mark in places like East River Project and Cambridge. So $65 as we've crested in South San Francisco feels like a deal to some of these companies. I guess the point we want to make here is there's still room for lift in the markets that Kilroy is in.
Okay. So I've been doing this for 16 years. I have a passion for life science. You've probably seen it from me in our little conference rooms and all of the conferences and you're going to see it this week at NAREIT. I've never been so excited.
Been able to work on a lot of really cool life science projects, nothing like this one. I'll let it speak for itself, but I'm really excited to introduce to you Kilroy Oyster Point and the transformation of the Oyster Point waterfront with a little help from Kilroy. Cue the video, please. So little volume for you. All right.
So just kind of walk you through the transaction. I know you guys are going to have a lot of questions, and we will have Q and A at the end. We closed this deal on Friday. It has been a complicated off market transaction that's been the better part of 18 months. As you saw in the video, it's approximately 35 acres.
It is entitled for 2,500,000 Square Feet of Life Science rather commercial lab or office development. The thing I want to stress the most is that although this is 2,500,000 feet and that's really critical to Life science growth, as I told you, all the companies in South San Francisco are growing. So being able to prove as a landlord that you can grow them in your portfolio is a really critical piece of the puzzle. We have the best of both worlds on this transaction because of the feasibility that we've built into it. So I'll walk you through the phasing.
But if I could have one takeaway for you, it's scale in the hottest market in the West Coast and it's in bite sized increments that are sort of choosing. So I talked about the 35 acres and nearly a dozen buildings. The increments, you can easily do the math, kind of come in a 200,000 square foot clip. If I just add a little stat to that for you, the average size deal in South San Francisco over the last 10 years is 125,000 feet. So right in the sweet spot in terms of what the market wants to see.
So we're pretty exciting about the way we can kind of roll this out across all five phases. So total investment of roughly $2,500,000,000 over the course of several years. And the initial scope for Phase 1, which I'll show you here shortly, is roughly 600,000 feet. So if you look to the bottom of the screen, you'll see Phase 1. That's 3 buildings, 600,000 feet.
That's sort of what we call click 1. Phase 2 is 900,000 feet, but can be incrementalized into 4 buildings or broken down into 4 buildings. Phases 34, a 1000000 feet together, but 500,000 individually have kind of a 2 building increment. So as you look at this and you can kind of see the ghosting of the footprints below in our initial master plan, you can kind of see each building is about 200,000 feet. The typical floor plate you want for life science, the heights you want for life science and it comes in a perfect increment across all 2,500,000 feet.
And then the adjacent strategic Oyster Point Technology Center that we actually closed on first, you can start to see the strategic nature of that asset for us. So an underutilized 3 building project that although has long term leases to credit tenants becomes the eventual Phase 5. So another big parcel that had a lot of meaning for us on a circulation and functional standpoint that adds a lot of value to our long term play. So if I summarize this, which I think I've done for you, but this is a meaningful presence for us. If you put it in perspective for a second, I talked about the size of the Bay Area.
I talked about the vacancy in the Bay Area. I talked about the demand. South San Francisco is 12,000,000 feet. We now control at whatever kind of clip we like 3,000,000 feet. That feels pretty good in terms of an ownership and a product type and a location.
And speaking of location, in terms of the Bay Area from a life science standpoint, if you think about Redwood City and even Stanford Research Park and all the great places you might consider occupying as a life science user, South San Francisco has the most transit. We're all spending more time commuting. Make no mistake that the ferry at the front door of this project is a pretty enticing thing. I meet with a lot of tenants about this. The enthusiasm that surrounds water commuting, Genentech is a neighbor 5,500,000 feet immediately adjacent to this project.
They have their own private water taxi service. The waterways are going to be the way we commute. This is the front door to the ferry. The other thing I would just add and you saw this in the press release this morning is the city is really excited to have Kilroy in town. South San Francisco is a couple of decades behind what you see in Cambridge.
We have a lot of room to do a lot of exciting things and Kilroy is going to lead the way. So what you see of us and all the sexy pictures you see John showing of our development in our core markets is what South San Francisco is begging us to do there and what we intend to do. So key takeaways in terms of life science, it's a national extension. I think it's pretty obvious we're already in the markets. We already have life science experience.
The reasons we're growing in this space is pretty obvious to see it's a great space, a great industry in early innings that quite frankly warrants a deliberate focus. Although the growth of the platform will continue to happen, it's going to be in a very smart and deliberate way. Quite frankly, it has been a very busy 2 years. We have ton and I'm really proud to say in a hyper competitive space, we have accomplished something most people said we couldn't and I think you'll continue to see more of that from us. And last but not least, you've seen my enthusiasm for Oyster Point.
This is a really exciting chapter. Oyster Point is going to change the waterfront. You're going to fly over it every time you leave SFO. We might even paint the ceilings red, Kilroy red. But stay tuned.
I think there's a lot more to come on what is going to be a really exciting chapter on Kilroy Oyster Point. And I'm your last speaker before the break. So for those of you listening online, you can tune back in, in 45 minutes when the webcast continues. For those of you in the room, you have a 15 minute break to do what you need to, make calls, use the restroom and report back to your seats. Thank you.
I guess I don't need this. My hello? Am I on? I'm good? Okay, great.
Super. Well, I hope you enjoyed the panel. I can tell you did by some of the questions and by looking at some of the faces and whatnot as well as by the questions that were asked. I want to thank all the panelists. These people are very busy.
They run huge real estate operations for some of the most formidable companies in the country, and they all have their challenges. You heard Nick and Chuck talking about how they have to plan and grow and whatnot. I know Ellen, with a longer term recognized entertainment company, is having to deal now with all of the challenges that Netflix and some of these other groups are presenting. So there's disruption. And there's where there's disruption, there's opportunity.
And that's what Kilroy has tried to focus on, whether it was using the 2,009, 2010 period to recognize we could finally get into San Francisco and Seattle and scale with the kind of properties we wanted and to end up with the kinds of teams we needed to be able to harness our organization's capabilities, and we've done that. Life science is another one that obviously has become more recently important. You've seen us do a little bit of resi in our mixed use projects. You're going to hear about the Flower Mart in a few minutes. Obviously, there's some One Paseo project.
That translates into a need to really understand what's going on in those spaces. It translates into making sure we're bringing people aboard that really are state of the art in understanding what's happening in those spaces. And if there's anything you that I want to commit to with all of you is we're always going to try to be on the front of the wave. There'll be some times when we fall off. If anybody serves, I do.
Sometimes you fall off. I fall off more than I used to. Hopefully, that won't be the case in business. But things are changing dramatically, and we pride ourselves on being a company that is out there riding the wave. And to do that, we really need to make sure that we're in regular communication with these dynamic companies and with companies, frankly, that are have fallen on some harder times and need to reposition themselves with regard to the way they think about their space and whatnot.
And as Rob mentioned, we spend so much time at varying levels of the company, and it really is a part of our culture at all different levels of whether it's asset management, property management, our leasing people and so forth, always trying to figure out what we can about what companies are thinking and how that translates into opportunities and or might translate into challenges that we need to deal with. So we're very dynamic in this. I don't yes, here it is. Thank you. So moving on from the panel.
Development strategy, I want to go through that. I want to go through where we are on some of our projects. Tracy went through the Oyster Point property we're really excited about. And I sure hope I'm going to see some people wearing that hat when they leave today. So this is a little bit just about our track record spanning last few decades.
Dollars 2,800,000,000 have completed since the IPO across 59 projects. 80% of that was leased upon completion, 90% was leased upon stabilization. In this current cycle, with the $1,900,000,000 or $1,700,000,000 we've just finished, I think we were pretty close to 100%. And with the $1,600,000,000 we have underway right now, we'll talk about that in a second. We added 2,600,000 square feet in that first tranche of development since the downturn, which was, as I say, 99% leased.
Our residential units in Hollywood are 85% occupied, with 7.7% cash and 8.6% GAAP on the stabilized ROCE on the office projects. If you think about that, you guys could we all could debate whether it's 4% or a 4.5% or whatever the cap rate might be. But if you sort of think about it, we're almost doubling the value of the investment. And in terms of power of development, in looking at this slide, it's been a meaningful driver for Kilroy. And development is not for the faint of heart.
You need to think about risk management in the supply chain. You need to think about risk management in the entitlement process. You need to have the team of people that are at their highest capabilities in the game to deal with all that. Obviously, you want to do a lot of pre leasing. If you look at the Q1 2018 annualized cash in wise of the company, dollars 460,000,000 And then you take a look at what's under construction right now, we think that contributes about $135,000,000 And then if you look at our future projects, and I'll get into that in a second, that's another $350,000,000 So basically doubling through development.
And this is illustrative, but I think we'll get there based upon the kinds of yields we're getting. And if you think about the value creation, Tyler is going to talk about the FFO accretion. But if you think about the value creation here, the $1,900,000,000 we have under development right now and the future projects with Oyster Point is about $5,000,000,000 Remember, that's over a long period of time, and that's in bite sizes, but so it doesn't come up all in at once. But if you look at that under construction and you look at the future projects, we think that stabilized value on those investments equate to about $10,800,000,000 to $12,200,000,000 And then you're going to discount that backwards, of course, because the economic profit, you got to take into consideration the fact you're not getting it for a while, so we discounted it back at 7%. And we think this contributes.
And you can we can argue about cap rates, we can argue about all these things, who the heck knows in the future. But you can see that we think there is pretty conservatively about somewhere between $3,000,000,000 $4,000,000,000 of value creation with the development pipeline that we have going on. Now I'd pose this thesis to you all, or at least thought. We see a lot of assets trading right now in Silicon Valley, San Diego, the Bay Area, Seattle, etcetera. And some of them are great properties.
We recently saw a major property up in Seattle that has Amazon, great credit, great location, best in class asset, and it went for an under 4% cap rate. I don't know where we make any money on that. We might make some money if we bought it with a partner and had some development fees. By the way, our partners in the room here, Karen Horstman, the only partner we have is Norges, the only sovereign wealth fund in the democracy. I like that.
We have to think about how we allocate capital, and we have to think about it smartly. I show you that slide that I said is one of my 2 favorite, how we've allocated capital over the last 20 years. And right now, I can't think of a better place to put it in development, but you have to mitigate the risk associated with development. If you sort of think about it, we're getting in the high 7s to 8s or better in our office. We've been getting sort of 6 plus in our resi.
We're getting sort of 7 ish in our retail, which is one project down in San Diego. But that's best in class properties and best in class locations. They're all LEED gold or platinum or better. So they're all young, vibrant, geared for the future, best in class. And when I look at, do I buy it for or do I develop to a 7 plus for better product?
I think it's a good bet, but you've got to mitigate the risk. This is a slide that many of you at NAREIT have seen before. This is the exchange. This is what we bought. 750,000 square feet had a height limitation.
This project on the upper portion was a little bit under that, but it had a footprint limitation, 2, 6 stories interspersed between 2, 12 stories. I hated the design. It looked like the hospital that it's around. Dropbox would have never taken this if it looked like that thing in the upper right. And the architect who designed that, we tried to work with them to change the design more to be like what's in the bottom.
They changed if you think about compass heading on a boat, they changed course 5 or 10 degrees and thought they'd made this amazing change of course. You could change that thing. That might have been the one that we changed 5% or 10%, and it was horrible. We brought in people that really understood what the modern workforce wants, and we created what you see here. And this is a kind of vibrant space that's dynamic, it's vibrant, it has larger floor plates, higher ceiling heights, it has all the bells and whistles that the modern tenant wants.
And it's not necessarily a prototype, because all projects are different, but it's very illustrative of everything we're doing in our program right now. And then if we think about the power of development with regard beyond the economics, as we say, we're a developer. We're a manager and an owner, but we're also a developer. Let's not kid. Kilroy is a developer in scale when it makes sense.
You've got to get entitlements. You have a lot of constituents in these cities. Think about San Francisco. You've got the historic society, you've got the anti growth, You got everything should be about subsidized housing. You've got the folks that are all about public developments.
You've got all these different forces going on. Place you've got a planning commission, place you've got a city or a Board of Supervisors, and you've got to make sure that what you end up with is something that makes sense, and hopefully, that can get approved within a time frame to where have some visibility that it's going to be necessary and you're going to be able to lease it and make money rather than just revert to the further cycle. When you develop to the quality that Kilroy does and you provide the amenities that we do and you interact as we do with our constituents, you end up building a capital that is far greater than money with regard to entitlement, because they trust you. You heard our panel talk about what's the first thing they think about is trust. Well, it's the same thing.
We've become partners with a lot of folks that we really don't like to have to deal with frequently, but it's a reality. It's a reality. It's like if you're going to a drug company and I'm way over my skis now, you've got to deal with the FDA. Whether you like it or not, and they tell you that they're going to do something differently, you could say it's up there, you could complain about it, you could say it's too much work, it doesn't matter. You've got to get their approval.
And so the kinds of designs and the things that go into our properties and the way we try to make them be part of the fabric of the community, think of that design you just saw at the Exchange, Those things build up incredible capital. And so beyond the economics, you've got to think about when you're doing these things, what does it mean for your reputation, your ability to get things approved in the future? And then with regard to the economics, one would argue, I certainly would, that these exciting projects with all these rooftop decks and everything else are very attractive to the user community, but also the thought that you're providing open space, even if it may not be public, but you're providing greenery, it's very important to all the environmental groups and so forth. Kilroy is number 1 in sustainability across all the food groups, across all the different kinds of real estate, as I mentioned earlier in North America. That is a very powerful statement when you're dealing with the approval process.
So and then we look at the I think it's always important remember my 2 slides, capital allocation slide and the debt slide, debt to EBITDA and all the rest. You have to be disciplined when you develop. And ideally, what you have is bite sized properties like developments like Oyster Point and some of the other things. Arguably and factually, the Flower Mart is not exactly bite sized. That's a big gulf, right?
But how do we think about discipline? We think about having a significant portion lease before we start the next projects. Think about what we said about the exchange. We're not going to start 100 Hooper unless we're pre leased at 100 Hooper or we've done a big lease at the exchange. That's what happened.
Think about 333 Dexter up in Seattle. We're not going to start that until we have big pre leasing there. And then think about the same thing with the Academy. Just get used to that. That's what we've always said.
That's what we've always done. I don't want to get over our skis. So if we take a look at this $1,900,000,000 we've got about $1,000,000,000 to be leased. Now if you think about that, you've got 1 Paseo residential, which is a couple of 100,000,000 and you've got 1 Paseo retail, which is, I don't know, the better part of $100,000,000 which I think we're about 75% leased at today. It opens about a year from now.
We've diversified by product type. We've diversified by geography. And at the end of the day, there's nothing better than a balance sheet, right? You got to have the balance sheet. So if you think about what does this mean in the way of development pipeline as a percentage of enterprise value.
And this chart here shows in this cycle where we've been as development pipeline as a percentage of enterprise value, and you can see that the leased is in dark blue, the unleased is in light blue. And we've been averaging about 15% with 9% of 9% of that 15% leased and 6% unleased. Right now, we're a little bit higher than that, but that will come down here shortly based upon leasing I can't tell you about. And I'm not talking about LOIs ever again. So upon stabilization, we've been 97% leased.
It's taken us about on our spec project, about half of this was started spec. It's taken us we've been spec commencement to lease execution was about 10 months. So you're going to see regularly leasing, leasing, leasing. And this shows that here when it was leased for the projects that we have underway or recently completed, Columbia Square was all spec, at least halfway through the cycle. Exchange was all spec, at least twothree of the way, threefour through the cycle.
100 Hooper started a lease. 3.3 Dexter, we just started. The Academy on Vine, we just started. And I'm quite confident those projects will be significantly leased before they're finished. So that's the trend you're going to continue to see.
Flower Mart, let's talk about the update on the Flower Mart. The Central SoMa plan, of which that's a whole area around the Central SoMa Subway, is the next area of growth for the City of San Francisco office. That's where it's all going. And the Central Subway is under construction and fully funded. Just to remind everybody again, that goes from Chinatown in the north, stops at Market Street, so connection with BART, stops at the Convention Center, stops at 4th and Brannan, one block from our site, stops at Caltrain, which connects you down to the South Bay and then goes on down through Mission Bay.
It's all under construction. It will be done before the Flower Mart is completed. The in order to get entitlement, you got to get prop in, but at first you got to have an environmental impact report and the central SoMa plants approved by the Board of Supervisors. So where do we stand on that? The Central SoMa plant was approved unanimously by the Planning Commission last month, And it will be before the Board of Supervisors in mid to late summer is their current schedule.
I believe that will get unanimously approved by the Board of Supervisors. So then they're free after a certain gestation period, to hand out entitlements under Prop M for candidates that are worthy. We think we get our entitlements for the first phase of the Flower Mart in early 2019, possibly late 2018. We think we can begin construction, which starts with the relocation of the Flower Mart to a temporary location and then be open in 2024 with the first phase. A little bit about the Flower Mart and how we think we're positioned.
This is a chart that I think Kilroy first produced. I know a lot of people have used it, some in the you're going to see the low rise go before the high rise, and you're going to see most of the stuff get consumed. They had no idea it was going to get fully consumed, but look what happened. You have 5,420,000 square feet that's 99% leased before or upon completion. The only thing that's under construction after that is Oceanwide, which hasn't started vertical to put pilings in, and that's about 1,100,000 square feet across the street from our office at First Admission and Catty Corner to Salesforce Tower.
That's what's happening. And then there's whoever gets their entitlements for this next phase in Central SoMa. And we think we will get the lion's share. We think we'll be out first with a transformational project with the retail. We're saving the Flower Mart.
The city is very keen on that. The city changed the EIR for Kilroy with regard to the Flower Mart by allowing us to add a density, add its height and many other and parking, which they don't really give to new development scale. They incorporated that into the EIR. It's the thing the planning commission wants to see, and the city has made available to us a site that they own for the temporary relocation of Flower Mart, and another site that the city owns as a backup to that. So I think we're in pretty good shape.
We hope we're in pretty good shape. And we have now a little video that I don't think anybody's seen in this crowd before, which will show you what the Flower Mart is, the experience you'll have as a user in the Flower Mart. And just again, the scale of this, 2,000,000 square feet of office, roughly 110,000, 120,000 square feet of Flower Mart, Wholesale Flower Mart, and roughly 100,000 square feet plus or minus of experiential retail on a site that's just about 7 acres that has between the ground plain and rooftop decks over 3.5 acres of rooftop decks or open space. So it has the highest percentage of open space of any project, I think, that's been done in modern day San Francisco. With that, can we hit it?
It's come a little ways since we first started talking about it and showed all of you our earliest plans for it. This has taken a lot of great turns. We've received a lot of wonderful feedback from the user community about what they like to see and so forth. This project is designed to be LEED Platinum. This project will have more parking than any other office development in the city.
It's still a de minimis amount by suburban standards. That actually happens to be a real benefit to some of the users. We're really excited about this. And the second so the project, the first phase is 1 point 7,000,000 square feet of office, plus all the other stuff I mentioned. The second phase is 300,000 feet.
And with that, I'd like to turn it over to Sarah Neff. Sarah is a young woman whose father was my personal attorney, and he Sarah was, I think, completed a master's program or something at Ulysses or UCLA, she'll tell you. And he said to me, John, could you speak with my daughter? She's thinking about doing different things and whatnot. She came in and she talked to me about sustainability.
Well, I've been wanting to get big time in sustainability for a long time. And in fact, my Board had asked me, we should really make a commitment and be a leader in sustainability. And we were sort of 7% or whatever the heck we were back then. She knew more about sustainability than anybody I'd ever talked to and could get it out like this. And I said, I got a great idea for your future.
Why don't you join Kilroy? And there began, as so often has been the case with others, great intellect and capability, the beginning of a wonderful relationship. Sarah represents us in conferences all over the world. She's one of the real leaders in sustainability. And with that, Sarah Naff, there you go.
Well, that was quite an introduction. Thank you so much. My name is Sarah Nef. I'm our Senior Vice President of Sustainability. I did come to Kilroy 8 years ago by way of Google.
Actually got my MBA up the street at Columbia. And I'm really looking forward to telling you a little bit about our sustainability program. So I'm actually going to start with a punch line, which you've already heard, which is that we are the number one program on sustainability in North America. It's something that we're all very, very proud of. And I want to use these minutes to talk to you about why we bothered to make that kind of commitment.
And our programs are not just the global real estate sustainability benchmark that has named us the number one company in office for the last 4 years, but we've won awards for our best in class re leasing, energy for leasing, energy efficiency, water efficiency, if you name it, we probably won it at some point. And why do we bother that? Why is sustainability one of our core values? Well, you've heard today about a best in class team. Frankly, sustainability is one of the main drivers for a best in class team.
It's a major competitive advantage in recruiting. 90% of people who interview at Kilroy mention sustainability in their job interviews. And so it really helps us attract best in class talent. And it also means that when people come into Kilroy, I've been here 8 years now, everybody comes in knowing that it's a core value, which means that it's not just my team that does this. It's financial reporting that integrates our 10 ks with the Sustainability Accounting Standards Bureau.
We were the 1st publicly traded company ever to do that. It's our risk management team that figures out how to make beehives work. It's our engineering team, asset management, legal. It's really highly integrated across the company. The other reason we deeply care about sustainability is it really creates a lot of value in our portfolio.
You've heard a lot about our development and frankly in our markets. You can't have a best in class building that's not also a sustainable building. These buildings create a lot of value because they're lower cost to operate over time. They have less maintenance. The operating expenses are lower.
That becomes very important as our utility costs tend to rise. And they're also very important because they enjoy higher occupancy rates. Our lead buildings are 1.1 percent higher occupancies than our non lead buildings. And let's talk about why that is. I think you heard it best from Chuck.
But our tenants also have sustainability as a core value. I did used to work at Google. It's not just we want the location, we want the kombucha on tap and our crossfit on-site. Those folks who want to work there really also care about more than their paychecks. It's also about values.
You heard about an incredible war for talent. Sustainability is a differentiator. I chose Salesforce as an example only because their sustainability report came out last week, so I'm giving you the most up to date sustainability information. I could have picked 1 of dozens of our tenants, but this is a good example of a company that has made a meaningful financial commitment to sustainability. They've announced a carbon neutral cloud.
They've announced that they're putting out cash to buy carbon offsets, a large in house sustainability team, a giant volunteer base. And most importantly, they don't want a marquee asset or a headquarters that isn't LEED Platinum. Frankly, they want their real estate to reflect their values. And that's the kind of product that we are able to offer at Kilroy. How do we do this sort of in the existing portfolio?
And we've talked a lot about strategic allocation of capital. Sustainability is just no different than that. We have a standalone sustainability budget, that we use for a mix of traditional and innovative cleantech projects. We have a Kilroy Innovation Lab specifically to rapidly prototype cleantech. And this is just one example.
Sophisticated software analytics with a guaranteed ROI found $60,000 a year of savings in an already LEED Gold building, and we were able to implement that with no impact to tenant comfort, paid itself back less than a year. And importantly, we learn and we scale. This is now in another 1,400,000 square feet, and growing. And what have been the overall results? Well, we've reduced our energy usage 15% since I started at Kilroy.
That's the equivalent of changing out over 1,500,000 incandescent light bulbs to LEDs every single year. Our water savings, including our large reclaimed water infrastructure, is about 45,000,000 gallons of water every single year. That's about 10%. And this is equivalent to an operational savings of $0.28 a square foot in our portfolio. But we're not stopping here.
We are just finishing up the installation of a large solar portfolio that used a great and financially accretive financial structure to do it. We were the 1st REIT to do that, following that up with a large storage portfolio for battery storage and more. And why are we bothering to do this? Well, at Kilroy, we recognize the fact that we only have 1 Earth. We're very excited to announce that we've just made the goal of becoming the 1st carbon neutral real estate company, Scope 1 and Scope 2.
And we're not going to stop here. We have best in class programs in biodiversity, in health. We have the 1st well certified rental units in the world, the most fit well certified space of any non governmental owner, and it just keeps going. So we really believe that aggressive investments in environmental attributes in our portfolio drives a lot of value for our employees, for our tenants and for our shareholders and we really feel like we're doing our part. So thank you so much.
Happy to answer any questions. And I'm going to turn it over to Tyler Rose, our CFO.
I think we saved the best for last here, but you've heard from our teammates today and how we're positioned strategically and from a business perspective. I'm going to finish up with how we're positioned from a financial perspective. So we're investment grade rated, our debt to EBITDA is in the mid-5s, our debt is almost all fixed rate, our portfolio is over 85% unencumbered. Bottom line is we're really well positioned. John showed this chart, not going to dwell on it.
We're not going to move to the right side beyond the middle. It'll bounce around a little bit as we develop, but we're not going to go to the right side. Our maturity profile is in really good shape. We don't have any material maturities for the next 4 years, except 2020. We're currently evaluating what we're going to do with that maturity, more to come on that, but again, really good shape.
This is an important slide on the spending. So on the top part of the box, we have our under construction properties, about $900,000,000 of spend over the next 3 years with the dispositions we're doing. We think we're well funded on that. The future projects, you can look at it a couple of ways. If the markets stay very strong, we're doing a lot of pre leasing, we may start all that.
That's about $1,200,000,000 over the next 3 years. On the other hand, if the markets turn, we decide to slow down, we could start none of these projects and that would be 0 spending. So the point here is we have optionality to start and within a lot of these projects we have optionality to phase. And we also have optionality and flexibility when it comes to capital sources. You can see over the last 9, 8 years, we've raised $8,200,000,000 that's been in common equity, dispositions, ventures, term loans, preferred stock, mortgages, so on.
So we have a lot of different sources, and we're going to continue to use those sources. We recently raised about $250,000,000 in debt. We did $100,000,000 of ATM in the last quarter. We're about to launch our new ATM because we've used up the old ATM. And we're well underway on our disposition.
So we're working hard on our funding sources for this year. This shows how we've been managing debt to EBITDA through this growth cycle, particularly in the last 4 years, we've stayed below our average. I think key on this is the last two bars. The second to the last bar on the right is a downside case that assumes we have to fund everything remaining with debt, and we don't do any more leasing, and it goes to the mid-6s. And then assuming we stabilize these assets, it moves back into the mid-5s.
So even in the worst case, we're in a pretty good shape on debt to EBITDA. And as John mentioned earlier, we've grown FFO substantially over the last 8 years. This chart shows our continued embedded growth in the portfolio from the development properties under construction. You start on the left side with the guidance we gave last quarter. You add to that a little bit from the stabilized portfolio.
The red bars are the cost of the financings, both that we've recently done and that we're planning to do. So that's the negative of that. Then you get the pop from the yellow bar of our under construction development that we're delivering over the next 3 years through 2020. And you end up growing FFO roughly 25% or lowering our multiple about 4 turns, all else being equal. So real good embedded FFO growth, which should also allow us to increase our dividend.
So if we recap our goals that we started out in 2018 with you we talked about 2018 expirations and 2019 expirations, done that. Harvesting opportunities within the portfolio, we talked about the Cruise deal, done that. On time, on budget delivery, we were just now delivering the exchange in Hooper, done that. Progress on the development leasing, I think Rob touched on it. We're making progress at 1 for sale retail and Hooper PDR.
So we're doing that. And then on the disposition program, we're also doing that. We're making progress. So doing extremely well on our 2018 goals. And finally, I think if there's 4 messages that all of you want to take away from today, best markets, high quality portfolio, we have a really experienced and strong management team, We are laser focused on the balance sheet and being conservative in this growth period, and we have the ability to grow FFO and our dividend over time.
So with that, we're done. What we're going to do is open it up for Q and A, about 15 minutes of that potentially, And we're going to invite all of our team up. And then after that, we're going to have drinks and appetizers in the back. So thank you very much. So Elliot and Michelle have microphones out in the audience there.
I don't
know how we're all going to stand up here, Tyler.
Quick question, I think, for John. The active development pipeline is about 20% of your total enterprise value, and you've got $5,000,000,000 identified behind that. My question is, do you have any sort of soft caps or hard caps on how big that active pipeline could be as a part of enterprise value?
That's a good question. And the way I look at it is you've heard us talk a lot about optionality and scalability and feasibility and so forth. I'm not going to say it's not going to grow because there may be other good opportunities and whatnot. But what I look at is when we look at development as a percentage of enterprise value we look at debt to EBITDA, when I have something that's leased and we've done a GMP project, we've got contract and so forth, then I sort of think of that is that EBITDA is coming, and that is going to roll out of development into core or into the stabilized portfolio. So what I tend to think more of is the ratios that are the debt ratios, the what's coming up in the portfolio in an area which we're developing in the core portfolio, and you've seen us take care of a lot of the expirations.
So I don't want to get to a hard and fast number, but I'm not interested, particularly at this stage of my life, I'm probably the oldest person in this room. I probably made more mistakes than most of the people in this room are ever going to make in their life because you're smarter than me. But one thing I am really smart is I know that you've heard me say this before, the shoals upon which all real estate companies eventually find themselves is called debt. I don't really like it. So we're going to be I hope that answers the question.
I'm not going to get into a hard and fast. If we're at 20% or 22% and it's leased to credit, I feel a lot better than if it's at 15% and it's on leased.
And just to add on to that, as we deliver the exchange in Hooper, that number is basically going to get cut in half and those are the office is fully leased, so that 20% is going to drop here by the end of the year.
Thanks. Two quick questions. Tyler, could you just go back to that slide that you just showed with the bridge? And I just couldn't quite tell from the slide how you were sort of layering equity. I just can't read the foot Cruise asset at Brannen, if that's okay?
Yes. So the red bars are recent financing and incremental leverage neutral financing. So it assumes we maintain our debt equity ratio at the current level. So it's sort of an assumption on our funding strategy. I don't even know where that question came from, Steve, but there you are.
So that's the thought is that it assumes leveraged neutral financing to complete the under construction development. Does that answer your question?
Yes. Okay. And then on the I just want to go back to the Brannen, I guess deals. If I did the math correctly, I think you said there was, I guess, dollars 5,000,000 of GAAP increase or $5,000,000 of cash increase, dollars 7,000,000 of GAAP over that total square footage. That sort of was like a high teens kind of rent per foot uplift on that deal.
Does that sound about right?
That's right.
Yes, that's right. Okay.
And I would venture to say that you're going to see I think you'll see sometime in the next quarter the highest rent on a triple net basis in the city's history on a sizable piece of property. You're going to see major increases on the kind of properties that we're talking about over the next I don't know, next couple of years.
A question for John.
It was really interesting to see that 'nine relative to today in terms of how the portfolio has changed. San Francisco and Seattle weren't on that slide before. You had some tenants up here talking about Nashville and Austin. How do you think about new market entry at this point? HPP talked last week at their Investor Day about Vancouver on the office and studio side.
They also talked about here in New York and Atlanta. How much of your time outside of the development are you spending on new markets chasing this technology growth?
Well, where's Elliot? Did he disappear? Oh, he's way back there. Okay. So we brought Elliot aboard, I guess, summer from Cohen and Stairs.
And if you think about Elliott joining Kilroy, in addition to being a really smart guy and a young guy and a great contributor intellectually, here's a guy that followed all of the public office companies and the public life science companies, and there used to be more, are those that are involved in life science, knew all the markets, had his own broker contacts, all the rest. Perfect person to plug in to Kilroy for a variety of reasons, but to your point, Michael, knows a lot about the different areas. I'm not going to signal that we are moving into a different area because we have no area right now to move into. We like the areas we're in. I don't know what the heck in the world New York would need Kilroy for or anybody else for that matter.
You got some of the brightest people in the world here, and you got to know the terrain. But we do keep our eye on other markets. And one of the ways we do that, and Rob and I and others are regularly talking to our client base or prospective client base, and most of that is within NDA. So I'm not going to get specific as to companies. But when they're thinking about different markets, they'll frequently share it with us and ask us what we're thinking about.
And so you should assume that Kilroy is very much in touch with as best we can be with our client base or prospective client base and with markets that might make sense. But I'm not signaling not 1% that we have our eyes focused on an executable market at this point.
And then just a follow-up on the development side, and I recognize there's no caps you want to put in place, but you have $1,900,000,000 today in active development, still have $900,000,000 left to spend And then you almost have now $1,000,000,000 in between Flower Mart, One Paseo, Oyster Point and Santa Fe plus some of the smaller projects in under in non income producing assets, right? So is there a certain level of capital that you're willing to park? I understand you don't want to in the slide you said you won't start development unless you can see it fit. But is there a certain amount that you're willing to carry on balance sheet today?
Well, I think again, the optionality, if you think about it, we can sell assets, we can venture assets. You're probably going to see us sell a couple of development sites in the near future, maybe, that we just think are nice, but we've got a lot on our plate. I look at this and I say to myself, I don't want to put the company in jeopardy. I want to make sure that we have the ability to accommodate the big users and smaller users in the places they want to be. So if you think about how you mitigate all this stuff, and you mitigate it, 1, you don't always say, don't be long on land if you're short on your balance sheet because that's a terrible place to be.
I'd rather carry land than carry a vacant building. We have no motivation to build something if there is invisible demand. And if you take a look at where Kilroy has its development stuff, Flower Mart, and we're teed up, I think, as good as anybody could ever hope to be teed up in this business. Kilroy by the way, the name Kilroy Oyster Point, I was against. I didn't want the Kilroy name on it.
Tracy, for a reason, she could answer, wanted it on. So she won. I know when I'm beaten. Generally, it involves a woman. I have 4 daughters and a wonderful wife.
We're beautifully teed up there. And in our other development sites, I think, like Little Italy, the one we bought down in San Diego, we'll start it when we are comfortable with the market there and comfortable throughout the portfolio. So we look at a lot of different metrics. One of the metrics we keep a big eye on right now is the increase in construction costs and labor costs and so forth, and we put in huge allowances for that. So I don't see us loading up on more land.
I see us executing on what we have. At the margin, do we buy something? It's a great opportunity. Sure. It depends on the market too.
It depends on the geography and it depends on the industry. And if you think about it, broadly speaking, at varying degrees, we're in 3 or 4 different food groups right now that are interconnected generally by being part of Master Plan. We're office in a big way. We're life science in a bigger way. And we're an experiential retail related to those kinds of properties.
Don't think of Kilroy going out and starting a freestanding shopping center. I want no part of it. And so I think we're I think we've got great risk mitigation with regard to our ability to understand cost, with regard to having the right kind of team, with regard to the diversity of markets and products and the balance sheet and the commitment on the balance sheet to make sure that we don't get over our skis. Somebody used to say to me when I was a kid and I thought it was pretty good, I don't remember who it was, Lose the back 40, farming talk. Lose the back 40, don't lose the farm.
I don't want to lose the back 40, but I sure as heck don't want to lose the farm. You've heard Nick Grabe and others up here talk about that their planning cycles literally are every year. Their 5 year plan is being developed again every 5 year every year because they're growing so exponentially. And you heard about the fact that the gestation period or the entitlement and development period of 3 or 4 years is too long. Well, the barriers to entry that we have in our markets, we think, has really positioned us well.
And most of the stuff we've been working on just didn't happen overnight. You may see it because we announced it, but it took years to put together. And long answer, but I think it deserves a thoughtful answer because it's a big question.
Great. Thank you. John, do you have a Tweeter account? Could you be if you had one?
A what?
Tweet account.
No, I'll let the other people tweet. I'm not a big fan of tweeting. All
right. I sort of get the math after a little bit, but you build at a 7.5% is worth a 4.5% yield on cost. Tracy, maybe Rob, maybe Steve, quick numbers. If you're building Flower Mart today or you're building Oyster Point today, what's your total development cost per square foot? And what sort of gross and net rent numbers do you need to achieve to hit a 7 plus yield on cost?
Yes, let me take that. In the Flower Mart, we've built in a lot of contingency, a lot of potential increase in developing construction costs. And we really don't know what that's going to be obviously until we start. And by the way, a little bit back to the other point, Flower Mart, our basis is so low, we probably could sell the property for $400,000,000 or $500,000,000 more than we have in it right now, and that's not our intent. But another way to mitigate this is not to make sure you're not long on the land, on the FAR cost.
We think we'll be in the same bandwidth on the Flower Mart in the 80 ish plus or minus range on the office. The Flower Mart is a little bit less. The retail, I can't tell you exactly what that's going to be. It's probably in the 70% ish range. But I think that project is going to be a winner.
And if you sort of think about that today, the rents I'm going to be careful how I say this. The rents that we're getting today for that kind of product, the brand's unique kind of product are in the high 60s, the low $70 triple net plus any parking you have. And parking look at the exchange. The exchange, our cost there was what per square foot? Pardon me?
$650. $650 a square foot. And our yield on that was roughly 8 percent or a little bit better because it's going to be a little bit better because our rent is our triple net rent start with parking is around $65 a square foot. Rents have traded up since then. On the life science, Right now, Tracy, the rates in the market down there are
They've just crested over 65, triple net.
65. And I think that's going to be somewhere between $900,000 a square foot as you build out. I also would expect the rates to go up, but that does not include parking. And parking is a pretty meaningful number down there because it's quite a high ratio of parking for those facilities.
Okay. Then for Tyler, really quickly. Essentially, there's probably an optimal size in terms of equity capitalization where you're small enough to so that your development moves the needle. You're not too big. You're not in BHP territory where you just can't move the needle with external growth.
At the same time, you don't want to be too small in terms of an equity capital base that people worry about your sources and uses. Do you have a sense for, in the next 3 to 5 years, what an equity capitalization range would be for Kilroy that makes you comfortable, not too big, not too small?
I'm not sure there's a right answer to that. I think you have to look at it as development as a percentage of enterprise value, because as we grow, we want to manage that number. I think that's maybe more important than the size of the company. We've never been big just to get bigger. But on the other hand, you're right, we can't be too small.
Rating agencies won't like it and it's too risky. So there's no perfect answer, but we think about it more on development as a percentage of enterprise value, keeping that in the right bandwidth.
If I could just give you kind of a different side of the response here, John. You're quite right. If you're too big, it doesn't move the needle. If you're too small, it's way too risky. And so how do you mitigate that?
The measures that I spoke about a few moments ago, I think the big thing is this. I started my career as a developer working for my dad, and he just loved to develop. And boy, oh boy, just develop and they will come. That sounds great. Sounds like the typical developer in the United States, right?
The problem is what happens if they don't come and you're sitting there with a lot of debt, and particularly if it's construction debt, you can't repay it when the time comes due because it never comes due at a good time, right? Never, never. So you've got to go back to all these mitigation factors. I think Kilroy is at a kind of a sweet spot with regard to the team we have, the markets we have, the client base we have, the barriers to supply in our markets, the position we have at the title property and the commitment that we're just not going to get out of over our skis with regard to unreleased development. I have no problem, as I said before, with a percentage of development to enterprise value being in that 20% range, if half of it's leased.
And at different points in the cycle, I might feel that it should be twothree least or more. But I have a real problem having those ratios be unleased. That's where you get into trouble. I have absolute faith in our ability to manage the execution of the development The leasing, is all about leasing, right? And if you've seen anything in this presentation today, I hope you'll see that everything we said is a game plan for 2018 or over the last couple of years as our initiatives.
We think we're hitting at 8 or 9 or 10 out of 10. I like that. And that's what makes me nervous Because when you're doing that well, you always have to say, could you always continue to do that well? That balance sheet becomes that much more important. We have a lot of optionality with regard to debt, with regard to asset based earnings.
We have a lot of people who want to do ventures with us. We want to be very thoughtful about that, because we need to make sure that we have people that have if we do that, that have the same kind of long term view that we have. Thanks. Can you give an update on what's going on, on the Candlestick site and how that might impact the supply picture
for what you're thinking about?
Yes, I think they're having a real problem down there. You can read about it in the papers. I don't want to be the 1 on a public forum like this talking about it. But the retail, I heard, is not going forward, at least not the way they thought it would be. I think that's the backbone or the driver of that development, as I understand it.
But I'm not an expert. So I feel very uncomfortable talking about other people's projects when I don't know anything about it particularly.
Any one last question before we break?
Well, there being are there any other questions? There being none, this meeting is adjourned. Thank you very much. And thanks, everybody, to follow us by the webcast.