Summary
Amazon.com, Inc. (AMZN) filed an 8-K on December 21, 2007, to report on a significant real estate lease agreement. The company entered into agreements to lease approximately 800,000 square feet of corporate office space in Seattle, Washington, which is currently under development and expected to be completed in 2010 and 2011. This lease, with an initial term of up to 16 years, is a strategic move to consolidate its headquarters and accommodate future growth. The total cost for this initial space is approximately $700 million, covering rent, operating expenses, and tenant improvements.
Key Highlights
- 1Amazon has committed to leasing approximately 800,000 sq ft of new office space in Seattle, Washington.
- 2The new office space is expected to be completed and ready for occupancy in 2010 and 2011.
- 3The lease agreement has an initial term of up to 16 years.
- 4The total cost for the initial 800,000 sq ft is approximately $700 million, including rent, operating expenses, and tenant improvements.
- 5Amazon has an option to lease an additional approximately 800,000 sq ft for approximately $800 million.
- 6A termination fee of up to approximately $40 million may apply if Amazon decides not to occupy the additional space.
- 7This expansion is intended to consolidate Amazon's corporate headquarters and support long-term growth.