10-Year, 153,000-SF Del Monte Lease Could Grow

SAN FRANCISCO-The 153,000-square-foot lease Del Monte Corp. signed recently for the top two floors and several lower floors of One Maritime Plaza could grow to over 200,000 square feet before the long-term lease expires, according to a copy of the lease agreement filed with the SEC subsequent to the announcement. The 10-year commitment could end up being 20 years if the company exercises all extension options. Del Monte has been in San Francisco for more than a hundred years.

The company is relocating, consolidating and expanding its 400-person San Francisco operation from the Landmark at One Market, where it leases 93,000 square feet, and 50 California St., where it leases an additional 19,000 square feet. The term of the new lease begins on April 1 and expires on March 31, 2021, not including two five-year extension options, according to the lease agreement. The expiration of its existing leases at the Land mark and 50 California were not immediately available.

The company is scheduled to be delivered the top two floors on March 1, 2010, followed by the sixth and seventh floors in August 2010 and the second, third and fourth floors in November 2010. It also has options for the ninth and nineteenth floors, as well as the right of first refusal for any space that comes available on the fifth, eighth, 10th, 21st, 22nd and 23rd floors. The ninth-floor is currently occupied by Cushman & Wakefield through mid-2013. Del Monte must give notice of its intent to take down the space one year prior to C&W’s lease expiration. The 19th floor is not expected to be available until 2016.