SiliconBeat

Sonicwall, the Sunnyvale supplier of network security tools, has agreed to lease 72,000 square feet from chip maker Xilinx at 2001 Logic Drive in San Jose and will relocate its headquarters there after the lease on its current Sunnyvale space expires Sept. 29. The new lease begins Sept. 1 and continues for an initial term that expires Sept. 30, 2014.

While the initial rental rate was not disclosed, Sonicwall committed itself to annual rent increases of 3 percent. At the end of the first term Sonicwall will have the option to extend the lease by another year with another 3 percent raise in rent. At the end of the sixth year, should it come, the lease can be extended for an additional year, but this time the rent will be equal to 95 percent of “fair market value” as determined by an independent appraiser.

In addition to monthly rent, Sonicwal will be responsible for the operating expenses of its own premises plus 12.46% of operating expenses for the the site where the premises are located.

Xilinx will also kick in a tenant improvement allowance.

A copy of the entire lease agreement will be filed as an exhibit to Sonicwall’s next quarterly filing.