The property is located in the Northwest section of the researchcenter, overlooking the Bay. Google agreed to an initial 40-yearlease that includes periodic escalations and adjustments of rentand multiple 10-year extension options that could extend the leaseby an additional 50 years. Google's initial base rent will be $3.66million per year. Depending on the escalations, which are based oninflation, the total lease value for the initial 40-year term issomewhere between $150 million and $200 million.

Per the agreement, construction will proceed in three phases,with the first phase slated to begin by the end of September 2013,the second phase by 2018 and the third by 2022. Google says themajority of the development will consist of office and R&Dspace but also will include company housing and other amenitiessuch as dining, sports, fitness, child care, conference andparking, as well as recreation and park facilities. NASA says itwill retain control over the project during its construction phase,including approving the design, issuing building permits,conducting inspections and monitoring construction.

A NASA spokesperson tells GlobeSt.com that the initial base rentof $3.66 million--established by a panel of independentappraisers--is based on an initial land value of $52.25 millionmultiplied by an initial interest rate of 7% per annum. The baserent will be escalated by inflation (capped at a 15% increase) onOct. 1, 2013, and every 10 years thereafter. NASA and Google agreedin the lease that, notwithstanding future reappraisals, base rentwill never be less than $3.66 million, and that the rate of returnwill never be less than 4.5% per year or greater than 9.5% peryear.