HubSpot inks new lease to expand in East Cambridge

The Davenport building in East Cambridge.
The Davenport building in East Cambridge.

One of the region’s fastest-rising software companies is sticking around its longtime home in East Cambridge for another dozen years.

HubSpot, a seller of sales and marketing software, said Friday that it plans to take over the rest of its current home in the Davenport, a converted former furniture factory near the Cambridgeside Galleria mall and Lechmere T station.

HubSpot, which held an initial public offering in 2014, already occupies more than 118,000 square feet on the building’s first, second, and fourth floors.

The new lease gives HubSpot control of nearly 67,000 additional square feet, with an option to eventually take over the building’s entire 218,000-square-foot space as other tenants move out.

“It was really important for us to stay put in the Boston area, and it just so happened that there was ton of opportunity in this space,” said Alison Elworthy, HubSpot’s vice president of operations. “We plan to be a pillar company in the Boston area, one that’s going to be here for our kids and grandkids.”

HubSpot has been based in Cambridge since it was founded in 2006 by MIT business school classmates Dharmesh Shah and Brian Halligan. Other current tenants of its building include venture capital firm Accomplice and audio-technology company Sonos.

The original Davenport building, at 25 First Street, was constructed in 1860 as the Davenport/Irving Casson Furniture Factory and is listed on the National Register of Historic Places. The seven adjoining buildings were linked together in 1987 to function as a single building.

True to tech-company form, HubSpot has outfitted its offices with quirky touches like a hammock-equipped nap room, a full kitchen stocked with food, and ping-pong tables.

The building is owned by Atlanta-based Jamestown Properties, which bought the offices from previous owner DivcoWest last year for $136 million.

HubSpot’s lease calls for it to pay up to $34.15 per square foot, increasing by $1 per year until 2020, when it jumps to $53 per square foot, according to paperwork filed Friday with the SEC.

Top-tier office space in the East Cambridge/Kendall Square area cost more than $69 per square foot in the third quarter, making it the most expensive neighborhood in the Boston area, according to research from the real estate broker Transwestern. The second most expensive neighborhood was Back Bay, with rates of about $61 per square foot.