HubSpot Inc (NYSE:HUBS), as tenant, entered into a Lease (the “Lease”) with One Canal Park Massachusetts LLC (the “Landlord”) to lease approximately 25,312 square feet of office space (the “Premises”) located at One Canal Park, Cambridge, Massachusetts (the “Building”).
The term of the Lease commences, with respect to Premises A consisting of 16,750 rentable square feet, on: the later date to occur of (i) the date Landlord delivers possession of Premises A to the Company in the condition outlined in Section 3.1 of the Lease, and (ii) March 1, 2017. The term of the Lease commences, with respect to Premises B consisting of 8,562 rentable square feet, on: the later date to occur of (i) the date Landlord delivers possession of Premises B to the Company in the condition outlined in Section 3.1 of the Lease, and (ii) June 1, 2019. The term of the Lease commences on the Commencement Date for the applicable portion of the Premises and ends on the Expiration Date of January 31, 2026 (the “Term”), with one (1) option to renew for an additional five (5) year term. The Company also has a one-time right of first offer to lease any area in the Building which becomes available during the Term of the Lease. The Rent Commencement Date for Premises A will be the later of (1) seven (7) months following the Commencement Date for Premises A, and (2) October 1, 2017, subject to certain deferral rights of Tenant. The Rent Commencement Date for Premises B will be the later of (y) three (3) months following the Commencement Date for Premises B and (z) September 1, 2019.
The initial rental rate payable with respect to Premises A will be $68.00 per rentable square foot per annum, with $1.00 increases per year. The initial rental rate payable with respect to Premises B will be $69.00 per rentable square foot per annum, with $1.00 increases per year. The Company will have no obligation to pay Yearly Rent for Premises A or Premises B from the applicable Commencement Date through the applicable Rent Commencement Date.
The Company will pay its Proportionate Share of all Operating Costs and Taxes incurred by the Landlord for the Building, subject to a specified list of excluded costs in excess of such costs incurred in the base year for the applicable portion of the Premises. The base years for Premises A are calendar year 2018 for Operating Costs and fiscal year 2018 (i.e. July 1, 2017 through June 30, 2018) for Taxes. The base years for Premises B are calendar year 2019 for Operating Expenses and fiscal year 2019 (i.e. July 1, 2018 through June 30, 2019) for Taxes. The Company is required to post customary Letters of Credit in the amount of $286,826.10 for Premises A and $147,758.90 for Premises B as a security deposit under the Lease.
Tenant will receive a tenant improvement allowance equal to $7.00 per rentable square foot of the Premises per annum and prorated to reflect the number of months remaining in the Term for each applicable portion of the Premises following the Rent Commencement Date for such portion of the Premises.