Updated Aug 5, 2026
Nikesh Arora Of Palo Alto Networks Extends Office Lease At 3000-3130 Tannery Way Santa Clara
3000 Tannery Way, 3200 Tannery Way, 3100 Tannery Way & 3130 Tannery Way
Building Size
941,000 SF
Asset Type
Office
Closing
Jul 30, 2026
About this deal
AI
The property involved in the transaction is an office asset located at 3000, 3200, 3100 & 3130 Tannery Way in Santa Clara, CA. The asset encompasses a total of 941,000 square feet, serving as the headquarters for Palo Alto Networks. The transaction entails a lease extension through 2040, securing long-term occupancy across four buildings in the Santa Clara market.
Summary of transaction details:
- Property Type: Office
- Transaction Amount: Not specified
- Square Footage: 941,000 SF
- Address: 3000, 3200, 3100 & 3130 Tannery Way
- Market: Santa Clara, CA
- Tenant: Nikesh Arora - Palo Alto Networks
- Lease Extension: Through 2040
- First-Year Rent Abatement: Yes
- Annual Rent Increases: 2%
- Tenant Improvement Allowance: Up to $72.50 per square foot
The key individuals involved in this transaction include Nikesh Arora, representing Palo Alto Networks, which has significantly extended its presence by securing long-term leases. These amendments to the leases provide financial incentives such as a first-year rent abatement and a specified annual rent increase, reflecting a strategic decision for the company's operational footprint in the region.
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Purchase Price
Annual NOI
Loan Amount
Interest Rate (%)
Loan Term (yrs)
Down Payment (%)
Cap Rate
5.80%
Cash-on-Cash
-1.66%
Monthly Payment
$14,164
Annual Debt Svc
$169,964
Annual Cash Flow
$-11,334
DSCR
0.93