Palo Alto Networks Inc. Extends Santa Clara Office Leases

What Happened

• Palo Alto Networks, Inc. announced on April 8, 2026 that it entered into three lease amendments extending leases for its Santa Clara properties. The amendments cover Building E (≈290,082 rentable sq ft at 3000 Tannery Way), Building G (≈309,559 rentable sq ft at 3200 Tannery Way), and Buildings F & H (≈340,923 rentable sq ft at 3100 and 3130 Tannery Way). The Extended Term runs 12 years from August 1, 2028 through July 31, 2040. The amendments were made with Santa Clara Phase III EFH, LLC and Santa Clara Phase III G, LLC.

Key Details

• Combined leased area: approximately 940,564 rentable square feet across the properties listed.
• Rent and escalation: base rent is abated for the first 12 months of the Extended Term; thereafter base rent is $3.825 per rentable sq ft per month with 2% annual increases.
• Tenant improvements: landlord must provide up to $72.50 per rentable sq ft for required improvements.
• Options and obligations: the Company has rights to two additional extension terms of six years each; the company reported the amendments create a direct financial obligation (Item 2.03). The amendments are filed as Exhibits 10.1–10.3 to the 8-K.

Why It Matters

• These amendments lock in long-term occupancy of Palo Alto Networks’ Santa Clara facilities through at least 2040 (with options beyond), affecting the company’s future facility needs and operating-lease commitments.
• The rent abatement, fixed starting rent with 2% annual increases, and a substantial tenant improvement allowance reduce near-term cash outflows for improvements while establishing predictable future rent payments — details investors should consider when evaluating future cash flow and lease liabilities.