The company, which keeps its executive offices in San Diego, uses the Rancho Cordova facility for some of its administrative operations and all of its manufacturing operations. The financial terms of the renewal have not been released by Volcano Corp., building owner KBS Realty Advisors or the brokers involved.

According to Volcano's annual report the lease was scheduled to expire in August 2009 but the agreement included an option to renew until 2024. Volcano's broker, David Marino of San Diego-based Irving Hughes, tells GlobeSt.com that the option was not exercised and that there was a complete, separate negotiation for a new lease at the same location. The new lease expires at the end of 2014.

According to its 2006 prospectus advancing its initial public offering, the company was to make lease payments totaling $1.55 million for the building in 2008, which works out to $20.49 per square foot annually and $1.70 per square foot monthly. Marino declined to discuss the lease rate on the new lease, which a local industry source tells GlobeSt.com is well below what the company had been paying.

Volcano has two other leaseholds in Rancho Cordova, according to its most recent annual report (2007). In early 2006, is moved its R&D, marketing and regulatory operations to a 34,657-square-foot facility on Trade Center Drive under a lease that expires in October 2009. Its product distribution operations are located in 12,960 square feet on Mercantile Drive under a lease that also expires this October. Marina tells GlobeSt.com that the company also renewed those leases.

KBS-affiliated entities, including KBS REIT I, own 385,000 square feet of office and industrial space in the Sacramento market in fourth properties. In addition to the Kilgore Road property the company owns University Park, City Gate Plaza and 9815 Goethe Rd.Ron Thomas of Colliers International represented KBS in its negotiation with Volcano.