Overview
The Real Estate Department is responsible for the review and analysis of all off-campus requests for leased space. Circumstances under which departments would generally be encouraged to seek an off-campus space lease when:
- Suitable campus space is not available
- Program type is non-instructional (excluding UCLA Extension)
Real Estate Leasing Process
The Real Estate Department is contacted by a campus departmental administrator or by Capital Programs with a current or planned requirement for off-campus space. Questions addressed in the initial contact generally include:
- Description of user group and type of proposed activity (general office, classroom, clinical, research, laboratory, storage)
- Preferred or required location
- Proposed funding and ability to pay
- Required term
- Construction or tenant improvement requirements,
Following the initial contact, if the departmental administrator elects to proceed with a lease, the Real Estate Department will request a Department Authorization Form (“DAF”) for leased space, giving the Real Estate Department authority to proceed. The Department Authorization Form generally addresses the following matters:
- Proposed lease term, preferred location, and square footage
- Proposed space configuration and general construction or tenant improvement requirements
- Target and maximum affordable rent
- Target move-in date
- Fund source of rental payments
- Any Special Requirements
- Type of Use
Upon receiving a completed DAF, the Real Estate Department will locate, analyze and present lease options to the requesting administrator. Steps taken at this stage include:
- Enlist the services of a commercial real estate brokerage company, if necessary.
- Market research the target area(s), trends and opportunity.
- Develop an inventory of potential opportunities.
- Arrange tours of the option spaces.
- Present an analysis of potentially suitable options to the user group.
- Once one or more lease options have been identified, the Real Estate Department begins negotiations proposing the basic terms by which the University is prepared to enter into a Lease. The proposal generally lays out the groundwork for the Lease, which sets forth the University's requirement in the following areas:
- Square footage
- Lease term
- Rental rate structure
- Concessions
- Operating expenses
- Tenant Improvement Allowance, design, and construction of improvements
- Tax exemption and indemnity/insurance provisions
- Options to Renew or Expand
- Termination Clauses
Once the proposal letter has been agreed to by the University and the Owner, the Real Estate Department will draft a lease on the University’s Standard Lease Form whenever possible.
The lease must also comply with University policies related to environment (Environmental Impact Report - EIC), Seismic Certification (SC), State Fire Marshal Inspection (SFMI) and the American with Disabilities Act (ADA).
After the lease has been negotiated and all of the terms agreed upon, the appropriate University party will execute the lease in accordance with the required procedures and appropriate delegation of authority.
Once the User Group is in the space, the administration of the lease becomes the primary responsibility of the Real Estate Department's Lease Administrators, whose responsibilities include:
- Coordinating and issuing rental and expenses payments
- Responding to tenant or building management concerns
- Maintaining active lease files
- Effecting the Tax Exemption process
- Issuing UC Certificate of Self-Insurance
- Compliance with all reporting requirements of the UC Office of the President and the Campus.
Contact Information
Real Estate
Phone: (310) 794-2653
Fax: (310) 794-2685
Email: RealEstate@re.ucla.edu
