The REX Effect: How Kilroy Realty Closed the Experience Gap at 100 First, San Francisco
How Kilroy transformed a downtown tower into a living, breathing experience ecosystem
Vision
Downtown San Francisco office vacancy was already rising pre-pandemic, and Class A towers risked losing relevance to more experience-driven properties. Kilroy Realty has long been a pioneer in transforming real estate into human-centric ecosystems. And in this moment, they saw an opening: what if the building itself were the differentiator? At 100 First, their vision was bold yet focused: to transform a 27-story Class A asset into a fully integrated experience ecosystem that meets tenants’ evolving expectations, rather than just leasing desks. It’s a dynamic, sustainable, tech-enabled environment designed to attract innovative companies and empower the people who work within.
The Class B office space renaissance isn't about pretending to be Class A. It's about recognizing that in an experience-driven workplace market, intelligence and responsiveness are their own form of premium positioning. With the right tenant experience platform and technology foundation, any building can deliver an exceptional workplace experience, regardless of asset class.
Market & Ideal Tenants
Located near the Salesforce Transit Center, 100 First anchors one of the most connected, high-demand districts in the city. As hybrid work reshapes demand, tenants in tech, media, and professional services seek offices that inspire culture, community, and wellness. Tenants aren’t just chasing space, but places with meaning.
When Kilroy began this transformation, San Francisco's office market was splitting. By late 2024, average asking rents had fallen 30% from the 2019 peak. But Class A Tier 1 trophy offices told a different story: asking rates for top-floor offices in the city's most desirable towers rose to $134.77 per square foot, up 3.6% from 2019, with vacancy rates of just 3.1%. The message was clear: quality wins. Located in the South Financial District, where activity levels were highest in 2025, 100 First was perfectly positioned to capture the flight-to-quality trend.
Kilroy went beyond general assumptions about what tenants “want.” They defined their ideal tenant personas—innovation-minded, ESG-driven, and talent-focused firms—and drilled down into specific behaviors, values, and operational needs:
- Who they are: Teams prioritizing collaboration, sustainability, and employee well-being.
- What drives them: Flexibility, seamless technology, and curated experiences that align with company culture.
- Where they spend time: Communal spaces, terraces, cafes, and wellness zones that foster connection.
- Pain points they face: Standard offices lacking adaptability, limited amenities, and poor integration of tech systems.
By deeply understanding these personas, Kilroy could design a building experience that resonates at both personal and organizational levels, ensuring that every space, service, and system supports their real-world behaviors and priorities.
Closing the Experience Gap
Kilroy executed their transformation using a holistic and REX-aligned model, turning silos into synergy:
| Spaces & Products | Conventional office tower | Garden terraces, daylight-filled floors, flexible layouts, and curated retail (Starbucks, La Fromagerie, sushi, and more) |
| Services | Standard operations | Concierge-style hospitality, events, and wellness-oriented amenities |
| Systems & Tech | Traditional BMS | Smart building analytics, tenant engagement tools, and sustainability tracking via the Kilroy Innovation Lab |
Each decision was informed by tenant insights and usage data, not guesswork. For example:
- Terrace and flexible floor planning addressed the hybrid work model and collaboration needs.
- Concierge services and curated retail were chosen based on what tenants valued most in daily routines.
- Smart analytics tracked engagement with spaces and systems, allowing ongoing refinement to improve satisfaction and operational efficiency.
The result is a seamless blend of comfort, technology, and sustainability. It’s an environment that makes coming to work an experience worth having.
The Experience Payoff
100 First holds LEED Gold, WiredScore Platinum, Fitwel 2-Star, and WELL Health-Safety certifications. These distinctions reinforce Kilroy’s brand as a leader in high-performance, low-carbon workplaces.
Tenant-focused design and data-driven decision-making have delivered measurable results:
- Higher engagement and satisfaction among tenants
- Energy savings through optimized building systems
- Strong leasing resilience and renewed interest from target tenants
The results show up in hard numbers. San Francisco achieved positive net absorption for the first time in nearly five years. Experience-driven properties led this recovery: downtown's newer Class A buildings sold for an average of $329 per square foot in 2024, up from $250 per square foot in 2023—a 32% increase that demonstrates how experiential transformations protect asset values.
Every improvement at 100 First ties back to a deep understanding of who the ideal tenant is and what they truly need, proving that intentional experience design drives both financial and social value. These wins confirm the REX thesis: experience-driven design contributes to economic resilience, tenant loyalty, and brand halo.
Voices of the Experience
“We design premium, adaptable environments that reflect company culture and support innovation.” — Kilroy Realty
Experience Lessons Learned
- Start with insight, not amenities. You need to know what your tenants truly value before investing.
- Pilot + iterate. Kilroy’s Innovation Lab model enables low-risk experimentation and portfolio-level scaling.
- Design ecosystems, not silos. The synergy of spaces, services, and systems is what creates stickiness.
- Measure relentlessly. Without data and feedback loops, experience design becomes guesswork.
This is the REX Effect: tenant-focused design doesn't just improve satisfaction, it strengthens business performance at market turning points.