New Tenants - Understanding the Leasing Process

Getting Started

Who determines whether I am allocated campus space or leased space off-campus?

How do I request off-campus space?

What information does REO need from a Tenant after approval by CASPO?

How Much space will I need?

• Assignable square feet
• Rentable square feet

What will it cost to lease?

What about parking off-campus?

What types of leases am I likely to encounter?

• Gross Lease
• Triple Net Lease
• Occupancy agreement

How long will it take to get into leased space?

Roles and Responsibilities

What is the responsibility of REO in the leasing process?

What is the responsibility of the Tenant in the leasing process?

• Lab Safety
• Telecommunications (computer and telephone) services
• Furnishings
• Movers
• Mail services
• Equipment insurance
• Private Security System
• Recharge budget Number
• Emergency Evacuation and Operation Plan
• Staff Commuter Parking

Getting Started

Who determines whether I am allocated campus space or leased space off-campus?

The Capital and Space Planning Office (CASPO) allocates all campus space and determines who will lease space off-campus. The Real Estate Office (REO) is responsible for all aspects of leasing off-campus space after approval by CASPO.

How do I request off-campus space?

Please use the Capital and Space Planning Office (CASPO) Space request form to start the leasing process. REO cannot proceed until CASPO approves the request.

What information does REO need from a Tenant after approval by CASPO?

To help meet your requirements for leased space, the REO Project Manager assigned to your lease after approval by CASPO will request the following information:

• Name of contact person for your department who can make business decisions about the lease terms
• Critical dates: start and end of desired lease period
• Budget restrictions
• Preferred location
• Number of staff
• Use and design (e.g., private offices, cubicles, laboratories, conference rooms, storage, lunch room, fax/copy space, etc.)
• Telecommunication needs
• Parking needs
• Names of other UW departments that will share space (if any)
• Campus mailbox requirements (not all off-campus sites receive UW mail delivery)

How Much space will I need?

For estimating purposes you will need about 270sf per person for a typical office suite with a mix of cubicles and private offices. If you plan a more open office with most staff working in cubicles you will need less space, about 220sf per person. This will give you your estimated rentable square feet (RSF).

Space is measured by assignable square feet, usable square feet, rentable square feet, and gross square feet. Below is a comparison:

Assignable square feet (ASF) is the measurement within the interior walls of a room or area and does not include interior circulation and common areas (kitchen, copy area, file storage, etc.). CASPO uses ASF to measure on-campus space – see “Space Data by Department” reports in CASPO’s SIMS database.

Usable square feet (USF) is the assignable area (ASF) plus interior circulation and common areas. For estimating purposes, multiply ASF by a factor of 1.40 to get USF.

Rentable square feet (RSF) is the area for which rent is typically charged and is therefore the number to pay attention to for budgeting purposes. It is the usable area (USF) plus the tenant’s percentage share of the building’s common areas (lobby space, corridors, restrooms, etc.). For estimating purposes multiply USF by a factor of 1.16 to get RSF.

Gross square feet (GSF) is the total area, measuring from the outside of the exterior walls and including all vertical penetrations, such as elevator shafts. It also includes basement space. This term is seldom used and is provided here for information only.

What will it cost to lease?

Leasing costs depend on market forces, location, amount of space required, type of use (office, lab or clinic) and tenant improvements required/desired. To help estimate lease costs, please contact the REO Tenant Services Manager. There are other costs to consider including, but not limited to, parking, telecommunications, furniture, moving expenses, equipment insurance, and UW Mailing Services. See Tenant Responsibilities for more information.

What about parking off-campus?

Monthly staff commuter parking is the responsibility of the individual or the department to arrange and is not arranged or paid through REO. Only business-related parking (parking for visitors, patients and vendors) can be addressed in the lease and charged as rent. This is typically limited to 1-2 stalls per 1000 square feet of rented space and rates in the University district range from $75-$125 per month. Please see Parking Services for alternative transportation information.

What types of leases am I likely to encounter?

Gross Lease (same as Fully Serviced Lease) is the most common lease. Under a gross lease, the stated rent includes the tenant’s share of the building’s operating expenses. This is the preferred lease because it makes budgeting for rent more predictable for grant-funded tenants.

Triple Net Lease (NNN) requires the tenant to pay base rent plus a share of the Operating Expenses (OE) for the leased property. Such expenses typically are itemized within the following categories: Taxes; Insurance; Utilities; and CAM (Common Area Maintenance) charges. Lease costs are less predictable for a NNN lease because the landlord provides an estimate of OE each lease year and adjusts for actual expenses at the end of each year. If expenses are greater than estimated, the tenant pays the difference; if expenses are less than estimated, the tenant receives a credit. REO performs CAM reconciliation for NNN leases annually.

An Occupancy Agreement (OA) is the document used instead of a lease when a UW tenant occupies off-campus space that is owned or master-leased by the University (space at Sand Point, Roosevelt Commons or 4225 Roosevelt, for example). The Occupancy Agreement is signed by the tenant, CASPO and REO.

A master lease is a lease controlling subsequent leases. The University leases an entire building and then provides space within the building to UW Departments.

How long will it take to get into leased space?

The process on average takes three to six months from CASPO approval to move-in date. Unique department requirements, market forces, type of use and amount/complexity of tenant improvements can impact the length of time before occupancy. For details, please see our sample Leasing Timeline. The REO Project Manager assigned to your project will develop a customized timeline for your particular project and update it regularly.

Roles and Responsibilities

What is the responsibility of REO in the leasing process?

• Sends Welcome letter to Tenant within 24 hours of receiving CASPO approval to lease space off-campus.
• Finds space to meet Tenant needs.
• Negotiates lease.
• Works with Tenant and Landlord and any consultants to develop space plan, construction schedule, and budget for tenant improvements.
• Signs final lease after Tenant approval and sends to Landlord for signature.
• Sends copy of fully executed lease to Tenant.
• Coordinates the process for tenant improvements.
• Pays rent to Landlord and recharges Tenant's budget.
• Notifies Tenant prior to lease expiration date or option to renew lease date.
• Administers lease and acts as Tenant's representative to Landlord.

What is the responsibility of the Tenant in the leasing process?

• Determine lab safety requirements if applicable
  • contact Environmental, Health and Safety for more information
• Arrange telecommunications (computer and telephone) services.
  • Contact Facilities Planning & Design, an office of UW Computing and Communications (C&C), to begin planning and budgeting for telecommunications (computer and telephone) services .
• Coordinate procurement of new office furniture and surplus of old furniture
  • Contact the Purchasing Department to purchase furniture .
• Coordinate the move
  • Schedule movers by contacting Property and Transport Services. Also arrange move with the Property Manager to comply with building hours, policies and restrictions. Contact REO Tenant Services Manager for assistance.
• Arrange for campus mail services
  • Contact Mailing Services to determine nearest established mailstop or inquire about cost to add your building to their route.
• Procure equipment insurance
  • Contact Equipment Insurance.
• Arrange for private security system, if desired
  • Contact Purchasing Department for details about the University's state contract with ADT for security system installation and monitoring. Installation must be coordinated with the Property Manager. Contact REO Tenant Services Manager for assistance.
• Provide budget number(s) to REO for recharging monthly rent and other costs
  • Contact REO Accounting using the Rental Budget Recharge Request Form with new/updated budget information. Budget numbers are assigned by UW Grants and Contracts.
• Develop an Emergency Evacuation and Operation Plan
  • Develop an emergency plan. This is the department's responsibility. Use Environmental Health &Safety's Emergency Evacuation and Operation Plan template as a guide.
• Arrange Staff commuter parking
  • Arrange monthly staff commuter parking. This is the responsibility of the employee or the department, not REO. Nor is it paid thru REO. Rates in the University District range from $75 to $125 per month. See Parking Services for alternative transportation information.