Catellus, Cisco Kid Ink $102 Mil Land Lease

SAN FRANCISCO-Catellus Development Corp. announced Monday it has inked a deal with a Cisco Systems subsidiary to lease land at the new Pacific Commons development. The Fremont business park is still undergoing construction. Upon completion, it will encompass more than 8 million sf of rentable space.

The Cisco deal is a 34-year lease, entitling Cisco to up to 3.4 million sf in the finished complex. Under the terms of the deal, Catellus will develop 2.2 million sf space. Additionally, there is the potential for Catellus to handle development and construction of the remaining space. The agreement commits Cisco to pay the ground rent in two installments, totaling $101.9 million by the second quarter of next year.

The deal leaves Catellus with 3.9 million entitled sf in the development, which is being actively marketed. Currently, one million sf of the project has been completed and is occupied by tenants, including Intel.