Ciena Corp Moving HQ to Station Ridge in Hanover
Ciena Corp has signed a lease with landlord W2007 RDG Realty, L.L.C. to move its headquarters into two buildings in Station Ridge in Hanover, MD. Together, Ciena's aggregate rentable area in the two buildings, 7031 and 7035 Ridge Road, will be 154,100 square feet.
Ciena's lease commencement date at 7035 Ridge Road will be no earlier than June 1, 2012, with rent commencing no later than September 1, 2013.
The 7031 Ridge Road lease and rent commencement date is dependent on W2007 RDG Realty, L.L.C. delivering the building, expected to be no later than November 15, 2012. The lease for both buildings is for 14 years and eight months from the Building 1 lease commencement date.
Morgan Keller began construction on 7035 Ridge Road in 2008 after Archon Group acquired the 32 acre parcel of land, now known as Station Ridge, in December 2006. Adjacent to an Amtrak MARC station, the building was awarded LEED Core and Shell Gold Certification in 2010. Archon designed and permitted the site for 350,800 square feet of office development.
John Wilhide, Kevin Wille and Ed Harris with CBRE have been marketing the asset, according to its LoopNet listing.
Ciena Corp's current headquarters address is 1201 Winterson Road in Linthicum, MD. According to its most recent annual report, Ciena leases six buildings in or near Linthicum, including an engineering facility, two supply chain and logistics facilities, and three administrative and sales facilities.
In April 1997, Ciena moved its headquarters facility from Savage, MD into 96,500 square feet at 920 Elkridge Landing Road in Linthicum. Its former Savage headquarters was converted entirely to manufacturing use. At the time, the company also leased an additional 57,000 square feet of manufacturing space in the Linthicum area.
At its new facilities, Ciena has the option to renew its lease for two additional periods of five years each. Ciena also has a right of first offer relating to additional space in the complex of buildings.
If the Building 2 rent commencement date coincides with the Building 1 rent commencement date, the initial annual basic rent will be $3.8 million. The annual basic rent rate will escalate two percent each year. Beginning in 2014, Ciena will be responsible for increases in certain operating expenses and real estate taxes over the amounts incurred in calendar year 2013.
The Lease also provides that W2007 RDG Realty, L.L.C. will contribute towards costs incurred for certain tenant improvements and will bear all costs for the construction of 7031 Ridge Road.
Ciena has the right to terminate the Lease if certain milestones with respect to the construction of Building 2 are not achieved in a timely manner. Ciena also has the one-time right to terminate the Lease with respect to all or a portion of the leased premises at any time after the tenth (10th) year.