Virgin America Establishes Headquarters in Equity Office’s San Francisco Portfolio

January 12, 2006 on 4:51 am | In The San Francisco Region, Peninsula

SAN FRANCISCO — (January 12, 2006) — Virgin America, a new U.S.-based start-up airline, and Equity Office announced today the signing of a 42,000-square-foot, long-term office space lease at Bay Park Plaza II on the Peninsula for the company’s corporate headquarters and principal operations center. The building, located at 555 Airport Boulevard, is owned, leased and managed by Equity Office.

“The Bay Area is one of the most desirable places in the world to live and it’s also one of the most desirable in which to do business,” said Todd Pawlowski, vice president of Airports & Guest Services; who spearheaded Virgin America’s headquarters and real estate search process. “Critical to our success as a low-cost start-up is the need to derive the greatest value from every business relationship we undertake. Equity Office provided us with an office space solution that fits our specific needs and supports our efforts to create a viable low-cost airline.”

Virgin America plans to occupy its new corporate headquarters in March 2006. Within its first two years of operation, Virgin America plans to create more than 1,500 new jobs in the San Francisco Bay Area, including more than 100 that will be based at Bay Park Plaza II. Virgin America anticipates hiring more than 3,000 new team members nationwide within its first five years of operation.

“As the largest office building owner in the Bay Area, we are focused on economic development, and have made a significant, long-term commitment to the area’s ongoing vitality,” said Mark Geisreiter, Equity Office’s senior vice president of the San Francisco Region. “Immediately following Virgin America’s announcement that the Bay Area was under consideration as a relocation alternative, we partnered with SAMCEDA in their outreach efforts to Virgin America. Bay Park Plaza II is a premier location on the Peninsula for Virgin America’s corporate headquarters. We look forward to a long and mutually beneficial relationship and are proud that the Virgin America name will appear on our building.”

Virgin America’s search for a corporate headquarters started more than two years ago when the airline project was first introduced. The original list of cities considered included Boston, Los Angeles, New York City, Philadelphia, San Francisco and Washington, DC. As the project evolved, the company’s shareholders voted to locate all company functions within the San Francisco Bay Area.

“The region and the state offered attractive incentives to help the airline meet its low-cost objectives,” said Deberah Bringelson, president and CEO of the San Mateo Economic Development Authority (SAMCEDA) and Peninsula Policy Partnership. “A positive business climate coupled with available real estate at favorable, market-driven economic terms will help support the company’s launch.”

The Bay Area is recognized nationally for its entrepreneurial heritage and economic prosperity. The concerted effort by local government and business leaders was a key factor in Virgin America’s decision to base its headquarters and operations center on the Peninsula.

“The new jobs created by Virgin America will represent a significant economic boom to the San Francisco Bay Area, which is a rich talent pool filled with the energetic, creative people we’ll need in order to create the new airline,” added Pawlowski.

The Virgin America name will be prominently featured on Bay Park Plaza II. The location offers excellent identity, market presence and specifically meets the important business requirements of the company. The building’s floor plates are perfectly suited to meet the demands of a flight and operations center. Easy access to a world-class, state-of-the-art airport, room for expansion and a reliable mass transit system are additional amenities and benefits. Located adjacent to the San Francisco International Airport, the mid-Peninsula location provides excellent access to public transportation Highway 101, Interstates 380, 280, 92 and the San Mateo Bridge.

Tim Grant of CB Richard Ellis and Gary Horwitz of The Staubach Company jointly represented Virgin America in the transaction. Equity Office was represented in-house by Ken Young, managing director of leasing.

About Virgin America

A U.S. majority owned and controlled company, Virgin America intends to launch domestic U.S. scheduled airline service utilizing new Airbus A320 family aircraft beginning in 2006. The company has announced agreements to take firm deliveries of 33 A320 family aircraft including 18 purchased aircraft from Airbus and 15 leased aircraft from GE Capital Aviation Services. Virgin America’s corporate headquarters is in the San Francisco Bay Area, and its principal base of operations is at the San Francisco International Airport. Virgin America’s goal is to build an innovative, creative travel brand based on safe and efficient operations, low costs, outstanding guest service, and a unique level of engagement by its team. Its mission is to create an airline people love. Aspiring candidates can visit virginamerica.com to learn more about joining the Virgin America Team.

About Equity Office

Equity Office Properties Trust (NYSE:EOP), operating through its various subsidiaries and affiliates, is the nation’s largest publicly traded office building owner and manager with a total office portfolio of 623 buildings comprising 111.6 million square feet in 16 states and the District of Columbia. Equity Office has an ownership presence in 22 Metropolitan Statistical Areas (MSAs) and in 101 submarkets, enabling it to provide a wide range of office solutions for local, regional and national customers. For more company information visit the Equity Office website at http://www.equityoffice.com

Contacts

Virgin America
Stacy Geagan
650-548-2585
stacy.geagan@virginamerica.com

Equity Office
Peter P. Pedraza
312-466-4076
peter_pedraza@equityoffice.com