Red Hat, the Triangle software company, has been promised several years in free rent and huge discounts in other years as part of a sweet deal from Progress Energy to sublease its office building in downtown Raleigh.
Red Hat reported this week in a federal regulatory filing that it expects to receive at least $28 million from Progress toward its real estate rent. That represents a 32 percent discount over the life of the $87 million lease.
The terms of the real estate lease effectively mean that Red Hat will be paid by Progress, a Fortune 500 electric utility, to occupy the 19-story building for a chunk of the long-term lease through 2035..
Officials at Progress and Red Hat could not be reached for comment to elaborate on their real estate contract. However, Progress has been under pressure to find a tenant to occupy the headquarters it plans to dismantle as part of its corporate merger with Charlotte-based Duke Energy.