Akamai commits to $700M office deal, state’s biggest in 3 years

Boston Business Journal | By Catherine Carlock
November 17, 2016

akamaiCambridge tech giant Akamai Technologies has agreed to lease at least 630,000 square feet in Kendall Square for a minimum of $698.4 million over a period of 15 years, the largest lease consideration for a real-estate deal in the state in at least three years.

Akamai’s (Nasdaq: AKAM) expansion plan, disclosed in an SEC filing this week, is bigger than the last two largest deals in Cambridge combined, according to research from Boston-based boutique real estate firm Freudenheim Partners. It’s also the largest office lease in Boston or Cambridge in at least the past three years, Freudenheim Partners research shows.

A 15-year lease for the first 486,048 square feet starts on Dec. 2, 2019 at a rental rate of $68.50 per square foot, with annual $1 increases, according to the lease specifics outlined in an SEC filing. The total consideration for that lease is $539.7 million, the SEC filing shows. The lease allows Akamai to consolidate six existing offices across Kendall Square under one roof, at Boston Properties’ (NYSE: BXP) planned 19-story building at 145 Broadway.

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