RealNetworks, Inc. has entered into a new, 11-year lease with 1501 First Avenue South Limited Partnership for its Seattle headquarters. The lease is for 85,000 square feet of office space in the SoDo neighborhood of Seattle.
The initial term of the lease is estimated to commence on August 15, 2013.
RealNetworks will be the anchor tenant in Home Plate Center, which is located kitty-corner from Safeco Field on First Avenue South. The company will initially occupy the fourth through sixth floors.
SkB Architects will create a customized build-out that reinforces energy efficiency, communication and collaboration. It will feature open meeting areas, a three-level staircase and a lunchroom located on the top floor adjacent to the outdoor deck.
RealNetworks will be obligated to pay $3.5 million in annual rent, which includes property taxes, operating expenses and common area maintenance expenses. Within 365 days of the expiration of the initial term, RealNetworks has the option to extend the lease for two additional five-year terms, with certain increases in base rent.
The company also has an option to lease an additional floor of the building during the first five years of its lease. The company also has a right of first refusal for the full floor during the first two years of the term.
RealNetworks has subsequently amended the lease with for its current headquarters and secured an early termination effective in three stages. The majority of the lease termination will occur on August 31, 2013.
The company will pay its current landlord, SRI-WR Elliott Avenue LLC, a termination payment of approximately $6.6 million against an obligation of approximately $10.5 million. The lease was set to expire in September 2014.
RealNetworks says its new lease will result in a near-term savings of $7 million in facilities costs.