Splunk Inc. has entered into an office lease with landlord 270 Brannan Street, LLC for 182,000 square feet at 270 Brannan St in San Francisco, CA.
The lease term is 84 months from the date the company begins paying rent.
Developed by a joint venture between Mitsui Fudosan America and SKS Partners, 270 Brannan St is a seven-story, 65-foot building designed by Pfau Long Architecture, according to bisnow, which predicted this transaction in a report on April 21. The building will have lots of bike parking and a central glass roof atrium, according to bisnow’s report.
The lease, which was signed on April 29, provides for the initial lease of a portion of the premises and subsequent lease of the remaining premises. Subject to landlord’s completion of certain pre-occupancy improvements, the term for the initial premises is expected to commence on January 1, 2016 and the term for the remaining premises will commence one year thereafter.
Annual base rent will be approximately $6.3 million for the first year of the term for the initial premises increasing to approximately $12.2 million on the rent term commencement date of the remaining premises. The base rent is subject to annual increases of 3.0 percent during the term.
Base rent for the first year is based on 95,000 rentable square feet, regardless of the actual size of the initial premises. The base rent payments do not include the company’s proportionate share of any operating expenses, including real estate taxes.
Splunk has the option to extend the lease for up to two renewal terms of five years each, provided that the rent would be subject to market adjustment at the beginning of each renewal term.
Splunk also has a one-time right of first negotiation with respect to a proposed sale of the premises.