Leases, UC as Landlord

Are you a UCSC unit considering leasing space to non-UC parties, or a non-UC party wishing to lease space from UCSC?

The  UCSC campus owns properties that may be leased to third-parties.  These properties are currently primarily located at the UC MBEST Center, located in Marina, CA.  When such space is to be made available to a third party, a lease or license must be executed.  (Licenses are used instead of leases in specific circumstances, described here.  The campus Real Estate Office helps units lease out space by obtaining campus approvals, negotiating lease terms, preparing final documents, executing, and retaining records. 

Leases of UC facilities to third parties follow this sequence:

  •  The campus unit that wants to lease space fills out a project summary/concurrence form, and after obtaining approval from the Principal Officer of the unit's Division, emails it to the REO (Lisa Akeson).  

  • REO will circulate the project summary to obtain concurrence and approval by the Campus Provost/Executive Vice Chancellor, and report the approval to the UCSC Advisory Committee on Campus Planning and Sustainability ("ACCPS").  If the project cannot be approved by concurrence, the campus unit that wants to lease space will need to make a presentation at the following ACCPS meeting to obtain ACCPS' recommendation that the CP/EVC approve the lease of campus space.

  •  The REO will negotiate lease terms in coordination with the requesting campus unit.  

  • The REO will prepare a lease based on the  UC Standard Form Lease on the terms approved by the CP/EVC.

  • Prior to lease approval, the REO will ensure that all appropriate campus units are involved.  Such units may include Risk Services, Fire Marshal, Physical Planning and Construction, Environmental Health and Safety, and the Environmental Assessment Group.

  • The REO completes additional University documentation and ensures that appropriate environmental evaluations have been prepared.

  • The tenant prospect signs two originals of the lease.  The lease is generally executed by the Real Estate Office or the Vice Chancellor, Business and Administrative Services, depending on delegated authority. 

  • REO retains records of the lease and assists units with managing the lease and interpreting lease terms  
  • Tenants typically pay the University an initial security deposit and a monthly rent based on the size of leased premises.  For campus spaces, the lease is usually a "gross lease", which includes utilities and services within the leased space, as well as common area maintenance costs. Although the University does not pay property taxes, the local taxing authority may separately charge private tenants a possessory interest tax on the imputed value of the lease. The REO is available to interpret any such charges.
    • If the space being leased is state-funded space, the campus unit leasing the space will need to enter into a memorandum of understanding with Physical Plant to repay the campus for the operating costs of the space: utilities, janetorial, grounds, refuse, etc.  REO will assist in facilitating this discussion with Physical Plant.