XenoPort occupies 102,759 sf at 3410 Central Expressway under a10-year lease it signed in September 2001. At the end of February,it extended that lease by two years, to Dec. 1, 2013, and agreed tolease an additional 58,744 sf at 3400 Central Expressway for 60months beginning in December 2008, according to the SEC filing.

The cost of the new 58,744-sf lease is approximately $6.14million, which translates to an average annual lease rate of $20.90per sf. The cost of the two-year extension of its originalleasehold is $4.72 million, or $22.96 per sf. The current leaserate for its original 102,759-sf lease is $37.64 per sf per yearand will top out at $41.40 per sf before its original end date ofDec. 1, 2011.

XenoPort was represented in its lease negotiation by Rob Shannonand Joe Kelly of CB Richard Ellis and Craig Fordyce of ColliersInternational. Sobrato represented itself. Shannon tellsGlobeSt.com that the difference in XenoPort's current lease rateand the lease rates for the expansion and the extension is less thefact that they signed the original lease at the top of the marketand more the fact that the original lease included the cost of thebuild out of XenoPort's lab space, which can run between $100 and$400 per sf. The cost of those TIs are built into the cost of theoriginal lease but are not represented in the expansion, because itis for pure office space, or the extension, because it will havebeen fully amortized in the original lease term.