A build-to-suit lease agreement has been inked to initiate construction of a global headquarters in Exton, Pennsylvania, two miles from its current office in Lionville. The new building will have 130,000 sq ft of rentable office area and laboratory and research space covering 41,000 sq ft.
West entered into the agreement in anticipation of the expiration of the lease on its current headquarters. The lease on the new building will begin on the later of: January 16 2013, and 30 days after substantial completion of the building and tenant improvements.
An initial 15 year lease has been agreed and West expects annual base rent in 2013 to be $4m (€3m), including landlord funded tenant improvements. All building management, operations and repairs will be performed by the landlord and reimbursed through monthly expense payments.
West has the option to extend the lease by two additional terms for a total of 10 years, purchase the building, and has a right of first offer to rent space in five nearby premises owned by the landlord.
Failure by 530 Regency Drive Associates, the landlord, to substantially complete base building work and lab space by May 4 2012, or the entire site by December 1 2012, will lead to damages being paid.
West currently employs 325 people at its headquarters in Lionville, a site housing analytical laboratories and research space, as well as corporate and administrative offices.