1800 PR.01 Leasing Commercial Space

Contents

1.      Overview

2.      Commercial Space for Yale Units

3.      Yale-Owned Commercial Space for External Parties

Yale units are constantly evolving with respect to their physical space requirements.  This procedure describes the process and steps that should be taken when a Yale unit identifies a changed need (i.e., less space, more space, change in use) for commercial space.  Commercial space, per Policy 1800 Real Estate Leases, is real property (or a subdivided portion of real property) that is used for business-related activities.  For Yale, commercial space may include real property that is used for academic, administrative, clinical, office, research, restaurant, retail, storage, or other business-related purposes.

Yale units occupy a variety of spaces for their academic, administrative, research, and clinical needs.  As the need for these spaces changes over time, Yale units should regularly reassess their requirements.

Prior to making any significant changes in a unit’s existing physical footprint, Yale units should contact University Properties.  Significant changes include, but are not limited to, vacating a space or altering the core function of a space (e.g., converting office space to server rooms).

If new space, additional space, or temporary space is needed, Yale units should adhere to the following process:

a)   Obtain and complete one of the following forms, depending on the need:

• Form 1800 FR.01 Yale Central Space Request, used for all Yale space, except for patient care space and all space pertaining to Yale School of Medicine (“YSM”);
• Form 1800 FR.02 Yale Medicine Clinical Space Request, used for patient care space; for both stand-alone clinics and session space; or
• Form 1800 FR.03 Yale School of Medicine Research/Administrative Space Request, used for all YSM-related space except for patient care space.

b)   Submit completed form, with all indicated approvals and any supporting documentation, as directed on the form.

c)   Submitted forms are reviewed to determine:

• Whether the requested space is consistent with Yale’s mission and in the University’s best interest;
• Whether there is any vacant Yale space that might be suitable within Yale’s academic or commercial portfolio (“existing space”);
  
  • Facilities Planning works with the unit to evaluate the space needs and determine whether Yale has suitable existing space.  If Yale has suitable existing space, Facilities Planning works with the unit to complete the necessary steps and paperwork for securing the space for use;
• Whether this request could be coordinated with other requests to negotiate a better deal; and
• Whether funds are available to pay for the requested space.

d)   If there is no suitable existing space available, University Properties is engaged to identify, review, and approve for suitability one or more commercial properties that meet the unit’s stated needs.

e)   Once University Properties approves a property, a representative tours the property with the requesting department, Facilities Planning, and Yale Facilities.  If more than one property is toured, the unit then indicates a preferred space.

f)    Facilities Planning prepares a drawing of the preferred space to show the fit-out work needed to modify the space to meet the unit’s needs (e.g., installation of telephones, computer, and security systems, or modification of the workspace).  Facilities Planning estimates the cost of completing the fit-out work and provides the drawing and cost estimate to University Properties, the appropriate finance office, and the requesting unit.

g)   If the estimate is reasonable given the funds available, University Properties then negotiates the lease within the constraint of the funds available, and negotiates the landlord’s participation in and contribution to the fit-out work.

h)   University Properties completes the appropriate Lease Term Sheet, depending on the type of space, and forwards the Lease Term Sheet and completed space request form to the appropriate approvers (indicated on the Lease Term Sheet and space request form).

i)    If the terms of the lease, according to the Lease Term Sheet and space request form, meet the Leasing Principles stated in Policy 1800 Real Estate Leases, and meet with financial and operational principles, the appropriate approvers (indicated on the Lease Term Sheet and space request form) approve the Lease Term Sheet and space request form and return them to University Properties.

j)    University Properties creates a draft lease agreement based on an approved Yale University template and delivers it to the landlord.

k)   Once all parties agree on the lease language and the Office of General Counsel (“OGC”) approves the lease agreement, an authorized signer in University Properties signs the lease.

l)    University Properties retains the executed copy of the lease for record retention purposes and sends copies to:

• University Facilities, ITS, and any other units involved in the fit-out of the space;
• OGC;
• Facilities Space Management and Information Systems Manager;
• Risk Management;
• Office of Environmental Health and Safety and Fire Code Compliance;
• University Properties Tenant Services;
• Utilities;
• Yale Security and Yale Police; and
• Controller’s Office.

Parking Provisions

In certain circumstances, leases may include space for parking.  In all such instances within the City of New Haven, Yale Parking & Transit governs the use of the parking space.  Occupying units should contact Yale Parking & Transit for all questions and requests regarding parking in leased space.  For all space outside the City of New Haven, the lease document governs the use of any parking space.  Specific concerns and requests should be addressed during the space request process.

Commercial Lease Renewals

To renew a lease for non-Yale-owned commercial space, units should obtain and complete the appropriate form described above.  Units should submit all completed forms to University Properties for processing.

Yale-owned commercial space is available for rent to external parties.  Yale-owned commercial space includes a portfolio of retail, restaurant, and office space.  Individuals and businesses interested in leasing Yale-owned commercial space should adhere to the following process:

• For retail inquiries, visit the Retail Properties section of the University Properties website;
• For office space inquiries, visit the Office Space section of the University Properties website;
• Visit properties of interest with an authorized representative from University Properties;
• Negotiate and sign appropriate lease documents with University Properties; and
• Negotiate any changes in lease terms directly with University Properties.