Overview | Staff | Real Estate Leasing Process

UCLA Policies & Procedures | UCLA Policy 880: Space Management

UCLA Policy 880.1: Request for Additional Space  or Modifications to Existing Space

UCLA Policy 880.2:Request for Off-Campus Real Estate Leasing

Department Authorization Form

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 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, giving the Real Estate Department the authority to proceed. The Real Estate Department will review Authorization form for completeness and will request additional information from user as needed. The Department Authorization Form generally addresses the following matters:

• Proposed lease term, location, and square footage;

• Proposed space configuration and general construction requirements;

• Target and maximum affordable rent;

• Target move-in date; and

• Fund source for rental payments.

Upon receiving a completed Department Authorization for Leased Space, the Real Estate Department will locate, analyze and present lease options to the requesting administrator. Steps taken at this stage include:

• Market research in the target area, trends and opportunity;

• A development of a broad inventory of potential opportunities;

• Initial tours of option spaces by the Real Estate Department;

• A narrow list of possible options; and

• Presentation of analysis of potentially suitable options for 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 letter of intent to the owner of each of the target buildings, outlining the basic terms under which the University is prepared to enter the Lease. The letter of intent generally lays out the groundwork for the Lease, which sets forth the University's requirement in the following areas:

• Location;

• Lease options and terms;

• Rental rate structure;

• Operating expenses;

• Design and construction of improvements;

• Tax exemption; and

• University approved standard lease Form.

Once the Letter of Intent has been executed, the Real Estate department will draft a lease. The length of time and the complexity involved at this stage depends principally 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 approval process with respect to 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.

Concurrently, in regard to the Letter Of Intent and lease negotiations, the Real Estate Department will coordinate all due diligence on target property in accordance with UC policies. These policies must be met in order to occupy the space.

The following must be completed prior to a lease being executed by the Regents:

1) Environmental Impact Classification Report (EIC)

An EIC is a document prepared for University projects subject to the California Environmental Quality Act to determine whether a proposed project is statutorily or categorically exempt, whether an initial study has been or will be prepared for the project, whether it is known that the project will have a significant effect on the environment, and whether the site for the proposed project is consistent with the campus' long range development plan leasing process. The Real Estate Office prepares the document and it is sent to the environmental coordinator for review and approval.

2) Seismic Certification

The object of this policy is life safety, not property protection. The standard does not assure that the property or its contents will be operational or undamaged after a major seismic event. The policy is comparable to those contemplated or implemented by local, state and federal regulators in the wake of the Northridge earthquake. The policy applies to purchases and new leases (defined as newly leased space or lease renewals). The policy does not apply to the exercise of options to expand leased space or to extend the lease terms that were negotiated prior to the implementation of the new policy. The Independent review states the licensed structural engineer's professional evaluation of the anticipated seismic performance of a structure during a "major seismic disturbance".

Leased property should be rated "Fair" or "Good." When leased property is initially rated "Poor" or "Very Poor" and seismic retrofitting is included in pre-occupancy construction, the facility should be brought up to a "Good" rather than a "Fair" rating. (In most cases, the cost difference between upgrading a facility to "Good" rather than "Fair" is likely to be marginal.)

The purpose for the State Fire Marshal Inspection is to establish minimum fire and life safety standards for all buildings. The standards are intended to reduce the loss of life and property due to fire and explosion, and provide safe, efficient and accessible buildings. The State Fire Marshal inspects all structures to insure that the structures are in full compliance with applicable fire and building codes. This is done through the implementation of rules and regulations designed to safeguard lives and property; by inspecting jurisdictional facilities to insure compliance with standards; and by inspecting new and existing occupancies to ensure legislative mandates. It is the State Fire Marshal’s responsibility to insure that fire and life safety code requirements are met and continue to be met.

Signed into law on July 26 1990, the Americans with Disabilities Act is a wide-ranging legislation intended to make American Society more accessible to people with disabilities. Eliminating barriers in the built environment is a key element in complying with the American With Disabilities Act. Title III of the American With Disabilities Act, which covers public accommodations and commercial facilities (most private businesses and non-profit service providers) requires that all new construction and modifications must be accessible to individuals with disabilities. For existing facilities, barriers to services must be removed if readily achievable.

After the lease has been negotiated and all of the terms agreed upon, the appropriate party will execute the lease in accordance with the lease administration manual. Next, the Real Estate Department:

• Distributes an executed lease to the Landlord, Real Estate Office, Office of the President, and the User group; and

• Provides basic lease and space information to Facilities Management and tracks lease in Real Estate Lease database.

Once the tenant is in the space, the administration of the lease becomes the primary responsibility of the Real Estate Department's Lease Administrator, whose responsibility includes:

• Coordinating and issuing rental and expenses payments;

• Responding to tenant or building management concerns;

• Maintaining active lease files; and

• Effecting the Tax Exemption process.

At various times during the leasing process, representatives from the Real Estate department act as leasing agents, principals, lease counsel, design consultants, project managers, and property managers. And, since the process for any given lease may be as short as a week or as long as ten (10) years, it is not uncommon for the Department to be handling forty or more lease requirements in various stages at any given time. The Real Estate Department continually strives to provide high levels of service within each stage of the leasing process, which has come to mean the continuing refinement and expansion of both the technical and general managerial skills of the department.

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Last updated 06/25/01