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)
- Length of need is temporary (e.g., ten years or less)
- Fund source is extramural
- Interaction factors are minimal with little need for contiguous space, campus support facilities, or access to campus operations
In the event that the above circumstances are not present, or for other reasons in the opinion of the Real Estate Director, alternatives to an off-campus lease should be explored, the user group shall then be referred to Campus Capital Programs, or to Health Sciences Capital Projects.
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, 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 for Leased Space Form (“DAF”), giving the Real Estate Department authority to proceed. The Real Estate Department will review the DAF for accuracy and completeness and will request additional information from the user as needed. 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 the negotiation process in earnest, and issues a proposal letter to the owner of each of the target buildings, outlining the basic terms by which the University is prepared to enter into a Lease. The proposal letter generally lays out the groundwork for the Lease, which sets forth the University's requirement in the following areas:
- Lease options and terms
- Rental rate structure
- Operating expenses
- Design and construction of improvements
- Tax exemption and indemnity/insurance provisions
- Options to Renew or Expand
- Termination Clauses
- A request to use the University approved Standard Lease Form
Once the proposal letter has been agreed to by the University and the Owner, the Real Estate Department will draft a lease. The length of time and the complexity involved at this stage depends primarily on, A) whether the Landlord agrees to use the University's Standard Lease Form, and B) the delegation of authority for lease execution. If the lease is on the University's Standard Form, review by the Office of the President can be minimized or eliminated altogether. If the lease is wholly or partially not on the standard form, then the review and the approval process with respect to the lease language involving the Real Estate Department, the Landlord, brokers, and attorneys can be lengthy. The time involved in the coordination and review process by the Office of the President can be similarly lengthy.
Whether a Standard Lease Form or an Alternative form is used, 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). (Please see Related Information, on the right, for a link to "Real Estate Policies.")
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 Lease Administration Manual. Next, the Real Estate Department will:
Distribute the partially executed lease to the Landlord
- Upon receipt of the signed Lease from the Landlord, the Real Estate Department will distribute the Lease to the Office of the President and the user group; and
- Provide basic lease and space information to Facilities Management and add the lease to the Real Estate Lease database.
Once the user group is in the space, the administration of the lease becomes the primary responsibility of the Real Estate Department's Lease Administrator, 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
Phone: (310) 794-2653
Fax: (310) 794-2685