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Palo Alto Networks (NASDAQ: PANW) locks in Santa Clara campus leases to 2040

Filing Impact
(Moderate)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Palo Alto Networks, Inc. has extended the leases on its Santa Clara campus, covering multiple buildings totaling several hundred thousand rentable square feet. The amended leases for Buildings E, F, G and H at Tannery Way now run for a new 12-year term starting on August 1, 2028 and ending on July 31, 2040, with two additional six-year extension options.

Base rent will be free for the first 12 months of the extended term, then set at $3.825 per rentable square foot per month, increasing 2% annually. The landlord will also provide a tenant improvement allowance of up to $72.50 per rentable square foot for upgrades to the leased properties, supporting the company’s long-term occupancy and facility investment at its Santa Clara location.

Positive

  • None.

Negative

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Insights

Long-term campus leases locked in with defined rent escalators and build-out support.

Palo Alto Networks has committed to an extended 12-year lease term for major Santa Clara facilities from August 1, 2028 to July 31, 2040, with two optional six-year renewals. This secures continuity at its existing campus rather than relocating.

Economic terms include 12 months of rent abatement at the start of the extended term, followed by base rent of $3.825 per rentable square foot per month and 2% annual increases. A landlord-funded tenant improvement allowance of up to $72.50 per rentable square foot supports interior upgrades without up-front outlay at full cost.

The filing does not quantify total lease obligations, so the overall financial impact depends on the total rentable square footage covered and how fully the improvement allowance is used. Over time, rent escalators will raise occupancy costs at a predictable pace, while the improvement allowance can help maintain modern facilities within the Santa Clara campus.

Item 1.01 Entry into a Material Definitive Agreement Business
The company signed a significant contract such as a merger agreement, credit facility, or major partnership.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement Financial
The company incurred a new significant debt or off-balance-sheet obligation.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Extended lease term 12 years From August 1, 2028 to July 31, 2040
Base rent $3.825 per rentable sq ft per month After first 12 months of extended term
Annual rent increase 2% per year Applied to base rent during extended term
Tenant improvement allowance $72.50 per rentable sq ft For improvements to the leased property
Rent abatement period 12 months First year of the extended lease term
Material Definitive Agreement regulatory
"The information set forth under Item 1.01, “Entry into a Material Definitive Agreement,” is incorporated"
A material definitive agreement is a legally binding contract that creates major, long‑term obligations or rights for a company, such as loans, asset sales, mergers, or supplier deals. Think of it like a mortgage or lease for a business: it can change future cash flow, risk and control, so investors watch these agreements closely because they can materially affect a company’s value, financial health and stock price.
tenant improvement allowance financial
"the Landlord is required to provide a tenant improvement allowance in the amount of up to $72.50 per rentable"
Extended Term financial
"commencing on August 1, 2028 and expiring on July 31, 2040 (the “Extended Term”)"
base rent financial
"Base rent under the Leases will be abated during the first twelve months of the Extended Term. Thereafter, base rent will be payable"
The fixed minimum rent a tenant pays under a lease before any extra charges or variable fees; think of it as the subscription price for a space, separate from add‑ons like utilities, maintenance, or a share of property taxes. Investors watch base rent because it sets the predictable, recurring income stream that determines a property's immediate cash flow and helps value the asset, while extras and escalations affect total returns and risk.
rentable square foot financial
"Base rent will be payable in the amount of $3.825 per rentable square foot, per month"
Understanding 8-K Material Events →
Palo Alto Networks Inc false 0001327567 0001327567 2026-04-08 2026-04-08
 
 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) April 8, 2026

 

 

PALO ALTO NETWORKS, INC.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   001-35594   20-2530195

(State or other jurisdiction

of incorporation)

  

(Commission

File Number)

  

(IRS Employer

Identification No.)

3000 Tannery Way Santa Clara, California 95054

(Address of principal executive office, including zip code)

(408) 753-4000

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

  

Trading

Symbol(s)

  

Name of each exchange

on which registered

Common stock, $0.0001 par value per share   PANW   The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 
 

Item 1.01

Entry into a Material Definitive Agreement.

On April 8, 2026, Palo Alto Networks, Inc. (the “Company”) entered into three lease amendments (collectively, the “Amendments”) extending the term of the Company’s leases (collectively, the “Leases”) of the following properties: (i) Building E comprised of approximately 290,082 rentable square feet and located at 3000 Tannery Way, Santa Clara, California, (ii) Building G comprised of approximately 309,559 square feet and located at 3200 Tannery Way, Santa Clara, California, and (iii) Building F and H comprised of approximately 340,923 rentable square feet and located at 3100 and 3130 Tannery Way, Santa Clara, California (collectively, the “Leased Property”). The amendments for Buildings E, F and H were entered into with Santa Clara Phase III EFH, LLC. The amendment for Building G was entered into with Santa Clara Phase III G, LLC.

Under the Amendments, the term of the Leases will be extended for a period of twelve (12) years commencing on August 1, 2028 and expiring on July 31, 2040 (the “Extended Term”). Base rent under the Leases will be abated during the first twelve (12) months of the Extended Term. Thereafter, base rent will be payable in the amount of $3.825 per rentable square foot, per month, with 2% annual increases. The Company has the right to further extend the term of the Leases for two (2) additional periods of six (6) years each.

Under the Amendments, the Landlord is required to provide a tenant improvement allowance in the amount of up to $72.50 per rentable square foot for the construction of certain improvements to the Leased Property required by the Company.

The foregoing description of the Amendments does not purport to be complete and is subject to, and qualified in its entirety by, the full texts of the Amendments, which are filed as Exhibits 10.1, and 10.2, and 10.3 hereto and are incorporated herein by reference.

 

Item 2.03

Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information set forth under Item 1.01, “Entry into a Material Definitive Agreement,” is incorporated herein by reference.

 

Item 9.01

Financial Statements and Exhibits.

(d) Exhibits.

 

Exhibit No.

   

Description of Exhibit

10.1    Amendment No. 5 to Lease by and between the Company and Santa Clara Phase III EFH, LLC, dated April 8, 2026.
10.2    Amendment No. 5 to Lease by and between the Company and Santa Clara Phase III G, LLC, dated April 8, 2026.
10.3    Amendment No. 6 to Lease by and between the Company and Santa Clara Phase III EFH, LLC, dated April 8, 2026.
104    Cover Page Interactive Data File (formatted as Inline XBRL)

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

      PALO ALTO NETWORKS, INC.
    By:  

/s/ Bruce Byrd

      Bruce Byrd
      Executive Vice President, General Counsel and Secretary
Date: April 10, 2026      

Source: View Original Filing on SEC EDGAR

FAQ

What lease changes did Palo Alto Networks (PANW) disclose in this 8-K?

Palo Alto Networks extended the terms of its leases for Buildings E, F, G and H on Tannery Way in Santa Clara. The new 12-year extended term runs from August 1, 2028 to July 31, 2040, with two additional six-year renewal options.

What base rent will Palo Alto Networks (PANW) pay under the extended leases?

After a 12‑month rent abatement at the start of the extended term, Palo Alto Networks will pay base rent of $3.825 per rentable square foot per month. This base rent will then increase 2% annually over the remaining extended lease term.

How long is the new lease term for Palo Alto Networks’ Santa Clara campus?

The amended leases create a 12‑year extended term beginning August 1, 2028 and ending July 31, 2040. Palo Alto Networks also negotiated rights to further extend the leases for two additional periods of six years each, if it chooses.

What tenant improvement allowance did Palo Alto Networks (PANW) secure?

The landlord must provide a tenant improvement allowance of up to $72.50 per rentable square foot. This allowance can be used to fund specified improvements to the leased properties, helping Palo Alto Networks update and customize its Santa Clara facilities during the extended term.

Which landlords are parties to the new Palo Alto Networks lease amendments?

The amendments for Buildings E, F and H are with Santa Clara Phase III EFH, LLC, while the amendment for Building G is with Santa Clara Phase III G, LLC. These entities remain the landlords for the extended Santa Clara lease arrangements.

Filing Exhibits & Attachments

6 documents

Agreements & Contracts

Other Documents