Vanda Pharmaceuticals Inc. and sublessor Hunton & Williams LLP have entered into an agreement under which Vanda will occupy additional space at 2200 Pennsylvania Ave, N.W. in Washington, DC, the building that serves as Vanda’s headquarters.
Under the sublease, Vanda has the right to occupy an additional 9,928 square feet in the building. The sublease will have a term beginning on January 1, 2017 and ending on July 31, 2026.
Vanda will initially pay $586,000 in annual rent, which will increase 4 percent per year over the term of the sublease. Rent will be abated for the first nine months of the term, and Hunton & Williams LLP will provide Vanda with an allowance of approximately $99,000 for tenant improvements.
Vanda and the building’s landlord, Square 54 Office Owner LLC, have also amended Vanda’s lease from July 25, 2011. Under the original Lease, Vanda occupies 21,400 square feet on the third floor of the building.
The lease term for the third floor space was scheduled to expire on March 31, 2023. That lease was amended in March of 2014 to allow Vanda to occupy an additional 8,860 square feet on the second floor of the building. The lease term for the 2nd floor space is scheduled to expire on September 30, 2026. The new lease amendment extends the 3rd floor lease by an additional three and one half years, from April 1, 2023 until September 30, 2026, to make it coterminous with the lease term for the 2nd Floor Premises.
In addition, on April 1, 2023, the landlord will provide Vanda with an allowance of approximately $321,000 for additional tenant improvements to the 3rd floor.