SiliconBeat

It is said that there’s no such thing as a free lunch, but free rent? That appears to be what Smart Modular Technologies will get when it moves its executive offices from Fremont to space it recently leased in Newark at 39870 Eureka Drive. The seven-year deal is set to begin May 1, according to a filing with the SEC today.

The maker of chips used for data storage, which has gone through two rounds of layoffs in the last six months, seems to be getting a sweet deal, even without any free rent.

For the first two years of the lease Smart Modular will pay $36,600 per month for the 79,480-square-foot building that includes office, manufacturing, engineering, research and development, warehouse and distribution space. That works out to 46 cents per square foot. After the second year the monthly rate will rise incrementally until the final year when it hits $54,000, or 68 cents per square foot.

“However,” the company states in the filing, “base rent shall be abated during the first year of the Lease.” The company will be responsible for taxes, insurance, maintenance and utilities, however.

On top of that, the landlord has agreed to fund up to about $400,000 in tenant improvement on the place. The lease terms are set to be released when the company files its 10-q report for the quarter ended Feb. 28.