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Real Estate and Facilities

Due Diligence Guidelines Contents

Due Diligence Guidelines: Rental of Real Property as Landlord

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Application

This guideline is applicable for proposed rentals of real property when the Board of Regents will be the landlord. This includes agreements when the Board of Regents owns the property being rented or when the Board of Regents is itself a tenant and will be sub-renting the property. This includes equally leases and rental agreements and is for all such agreements for vacant land, ground leases, improvements to land, buildings and portions of buildings

Pertinent Board Policy: Section 9.10

Pertinent Agreement

Rental Agreement as Landlord - Commercial

Submittal Guidelines

Request from President to Vice Chancellor for Facilities for rental of real property as landlord that includes all of the following as attachments:

A. Proposed rental agreement (3 executed originals)
B. Copies of all prior rental agreements, including amendments, that this agreement will supercede (if applicable)
C. Color pictures of property
D. Location map
E. Rental Rate Breakdown
F. Rent Comparables (Including private sector comparables)
G. Narrative

  1. Total square footage in facility
  2. Square footage subject to proposed agreement
  3. Term of agreement (start and end of initial period)
  4. Description and justification for all non-standard provisions in agreement
  5. Option periods (number and start and end)
  6. Rent for option periods
  7. Proposed use of the facility
  8. Current use of the facility
  9. Location current users will be relocated to
  10. Type of facility
  11. Current rent, if currently rented
  12. Determination if property is no longer advantageously useful to the institution or other units of the University System for the purposes of entering into the proposed agreement
  13. Advantages to the institution in renting the property
  14. Adverse consequences to the institution if the property is not rented
  15. If the building is a Bond funded project, what is the Bond issue.
  16. Any known restrictions, reversions or agreements on property.
  17. Any additional information that a prudent person would consider to be relevant or important to understanding and considering the request.