Due Diligence Guidelines: Rental of Real Property as Tenant
This guideline is applicable for proposed rentals of real property when the Board of Regents will be the tenant. This also includes agreements when the Board of Regents will be a sub-tenant. 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 9.11
Request from President to Vice Chancellor for Facilities for rental of real property as tenant 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)
- All University System rentals in the same facility and in the geographic area
- All State of Georgia rentals in the same facility and in the geographic area
- Private sector rentals in same facility (similar quality and use, and arms length)
- Private sector rentals NOT in same facility but in the geographic area (minimum of three of similar quality and use, and arms length)
- Total square footage in facility
- Square footage subject to proposed agreement
- Term of agreement (start and end of initial period)
- Description and justification for all non-standard provisions in agreement
- Option periods (number and start and end)
- Rent for option periods
- Proposed use of the facility
- Current location of proposed users
- Type of facility
- Current rent, if currently rented
- Specific source of funds
- Justification for rental that address all criteria set forth in the Board’s lease policy.
- Analysis of the availability of other suitable space on campus, in University System facilities, or within State owned or leased facilities within the area.
- Analysis of availability of other suitable State owned space within the area
- Analysis of availability to sub-lease suitable State leased space within the area
- Clear and affirmative confirmation that the Board of Regents lease policy has been complied with.
- Advantages to institution in leasing property.
- Any adverse consequences to institution if property is not leased.
- Indicate when the leased premises will be vacated and the event that will permit this to occur.
- If the space will be used for academic purposes:
a. Provide substantiation that the academic programs have been approved for this location
b. Identify any other institutions providing the same or similar programs in this area
- Any additional information that a prudent person would consider to be relevant or important to understanding and considering the request.