Summary
DexCom, Inc. (DXCM) filed an 8-K on May 18, 2005, reporting a material definitive agreement regarding a new lease. The company entered into a lease agreement with Hub Properties Trust for approximately 7,042 square feet of additional office space located at 5627 Oberlin Drive in San Diego, California. This new facility is situated within the same business park as their existing headquarters, indicating a strategy for physical expansion. The initial lease term is set to run through May 31, 2011, with escalating monthly rental payments starting at $8,309.56 and ending at $9,647.54. DexCom is also responsible for a pro-rata share of real estate taxes and operating costs, and has provided a $50,000 security deposit via a letter of credit. The total rental obligation over the lease's life amounts to approximately $627,653. Furthermore, the company has secured an option to extend the lease for an additional five years under specific conditions, suggesting a long-term commitment to this expanded space.
Key Highlights
- 1DexCom, Inc. entered into a lease agreement for an additional 7,042 square feet of space.
- 2The new leased facility is located at 5627 Oberlin Drive, San Diego, CA, adjacent to current headquarters.
- 3The initial lease term is from August 1, 2005, to May 31, 2011.
- 4Monthly rent will increase incrementally from $8,309.56 to $9,647.54 over the lease term.
- 5Total rent obligation over the lease term is approximately $627,653.
- 6DexCom provided a $50,000 security deposit in the form of a letter of credit.
- 7The company has a five-year renewal option for the leased space.