XenoPort occupies 102,759 sf at 3410 Central Expressway under a 10-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 to lease an additional 58,744 sf at 3400 Central Expressway for 60 months beginning in December 2008, according to the SEC filing.

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

XenoPort was represented in its lease negotiation by Rob Shannon and Joe Kelly of CB Richard Ellis and Craig Fordyce of Colliers International. Sobrato represented itself. Shannon tells GlobeSt.com that the difference in XenoPort's current lease rate and the lease rates for the expansion and the extension is less the fact that they signed the original lease at the top of the market and more the fact that the original lease included the cost of the build 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 the original lease but are not represented in the expansion, because it is for pure office space, or the extension, because it will have been fully amortized in the original lease term.