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Real Estate Office 451 Donhowe Building Real Estate Office 451 Donhowe Building 319 - 15th Avenue SE, Minneapolis, MN 55455 Phone: 612-625-5345 Fax: 612-624-6345 [email protected] www.realestate.umn.edu Clinics and Surgery Center Photo Credit: CannonDesign Lease Report Fiscal Year 2016 Real Estate Office 451 Donhowe Building th 319 – 15 Avenue S.E. Minneapolis, MN 55455 Office: 612-625-5345 Fax: 612-624-6345 March 2017 This University of Minnesota Fiscal Year Lease Report documents the University's real estate leasing activity during Fiscal Year 2016 (July 1, 2015 – June 30, 2016). Approximately 4,906 leases and easements involving the University as landlord or tenant, including the PUF leases, were in existence during the fiscal year and are included in this report. During Fiscal Year 2016, the total cost of 408 long-term leases, providing for the University’s use of 806,143 square feet (SF) of building space plus numerous apartments which are not measured, and 2,657 acres of land, air-rights and subsurface rights, plus 490 short-term use agreements, was approximately $21 million. This compares to 386 long-term leases and 1288 short-term use agreements in existence during Fiscal Year 2015 covering 799,117 SF and 2,113 acres at an approximate total cost of $19.6 million. The University’s total leased building space in Fiscal Year 2016 was relatively unchanged as it only increased by 7,026 SF. Leased space in Minneapolis decreased by approximately 14,200 SF and the amount of leased space outside of the MSP Metro Area (for the outstate campuses and other facilities) increased by approximately 20,000 SF. Included in the additional square footage of outstate leases was a new lease for 7,756 SF of office space for the University of Minnesota Rochester (UMR), which relocated to 309 South Broadway (L-9156). The University entered into the new lease for UMR to replace space being vacated in Fiscal Year 17 at 102 South Broadway (L-8111) because the lease was expiring. The number of leases, short term agreements and easements involving the use of University real estate by others during Fiscal Year 2016 totaled 4,008. This compares to 3,846 in Fiscal Year 2015. Funds 1000, 1026 and 1020-1150, except 1030, (General Operations and Maintenance, Miscellaneous, Other-Unrestricted), provided approximately $15.8 million, or 88%, of the University’s $17.9 million total cost for long-term rental facilities during Fiscal Year 2016. Funds 3000-3014 (Sponsored Research-Restricted) provided $296,000 for leased real estate during Fiscal Year 2016, or 2%. Other-Restricted funds provided $1.82 million or 10% of the total expended for the University’s use of real estate owned by others during the past fiscal year. This Fiscal Year 2016 lease report reflects the number of square feet leased as of June 30, 2016, or as of the termination date if the lease terminated during the fiscal year prior to June 30, 2016. The rents reported in this document reflect rents paid (leases and other agreements involving the University as tenant) and rents received (leases and other agreements involving the University as landlord) attributable to Fiscal Year 2016. Occupants identified are those housed in the leased premises at the end of the fiscal year (or at the end of the lease if the lease terminated during the fiscal year). Occupants of certain leased facilities may have changed since June 30, 2016. Several internal leases for the University’s use of University space that are managed through the Real Estate Office are included in this report. Questions and comments concerning this document are welcome and should be directed to me at 612/626-9402 or [email protected]. Sincerely, Jon Dostal Assistant Director Leasing & Facility Management cc: Susan Carlson Weinberg, CRE, Director of Real Estate Lease Report – Fiscal Year 2016 Table of Contents • Overview • Long Term Leases for Space to the University o Minneapolis/Hennepin County o St. Paul/Ramsey County o Outstate • Subleased Space with University Leased Space • Long Term Leases for Land to the University o Minneapolis/Hennepin County o St. Paul/Ramsey County o Outstate • Short Term Leases for Space to the University • Short Term Leases for Land to the University • University Owned Real Estate – Long Term Leases • University Owned Real Estate – Short Term Leases • University Owned Real Estate – Oil and Gas Leases • University Owned Real Estate – Easements • Permanent University Fund Lands – Leases • Internal University Leases • Spreadsheets and Footnotes Overview UNIVERSITY OF MINNESOTA LEASE OVERVIEW Fiscal Year 2016 NUMBER OF LEASES - LONG TERM LEASES TO THE UNIVERSITY Total Number of Leases 408 Total Square Footage Leased: * 806,143 Total Acres Leased: ** 2,657 Total Cost of Facilities: $17,937,507 SHORT TERM SPACE LEASED TO THE UNIVERSITY Total Number of Leases 490 Total Cost of Facilities $3,014,276 NUMBER OF LEASES - UNIVERSITY OWNED REAL ESTATE Total Number of Long Term Leases: 462 Total Number of Short Term Leases: 2,875 UNIVERSITY OIL AND GAS LEASES Total Number of Leases: 14 UNIVERSITY EASEMENTS Total Number of Easements: 550 UNIVERSITY PUF LEASES Total Number of PUF Leases: 107 * Excludes area for those leases which do not specify number of square feet in the leased premises (apartments, etc.) ** Excludes area for those leases which do not specify number of acres in the leased premises (and area for air rights, sub-surface, etc.) Prepared by University of Minnesota Real Estate Office UNIVERSITY OF MINNESOTA REAL ESTATE LEASED TO THE UNIVERSITY BY GEOGRAPHIC AREA Fiscal Year 2016 BUILDINGS: No. of Leases Square Footage Leased* Rent Paid Minneapolis: 45 373,920 $10,311,806 St. Paul: 16 30,654 $520,967 Greater Minnesota: 136 401,569 $6,772,865 (Coordinate Campuses & other) Total 197 806,143 $17,605,638 LAND (AND AIR RIGHTS, SUB-SURFACE, ETC): No. of Leases Acres Leased ** Rent Paid Minneapolis: 114 1.617 $32,123 St. Paul: 22 23.610 $129,432 Greater Minnesota: 75 2,631.710 $235,984 (Coordinate Campuses & other) Total 211 2,656.937 $397,539 * Excludes area for those leases which do not specify number of square feet in the leased premises (apartments, etc.) ** Excludes area for those which do not specify number of acres in the leased premises (and area for air rights, sub-surface, etc.) Prepared by University of Minnesota Real Estate Office UNIVERSITY OF MINNESOTA BUILDINGS AND LAND LEASED TO THE UNIVERSITY - LONG TERM SOURCE OF FUNDS FOR LEASED FACILITIES Fiscal Year 2016 1000 General Operation & Maintenance Funds - Unrestricted $8,908,615 1026 Miscellaneous - Unrestricted $1,024,134 1020-1151 Other - Unrestricted $5,841,713 (excludes 1026 & 1030) 3000-3015 Sponsored Research - Restricted $295,673 1030, 1500-1916 Other - Restricted $1,818,260 9000 Agency Funds $28,406 ---------- Miscellaneous (unidentified sources of funds) $20,708 Total funds spent on long term rent for FY16 $17,937,507 Prepared by University of Minnesota Real Estate Office UNIVERSITY OF MINNESOTA RENTAL COSTS FOR LEASES WITH UNIVERSITY AS TENANT LONG TERM Fiscal Year 2006 through Fiscal Year 2016 20,000,000 18,315,915 18,407,333 18,292,766 17,937,507 18,000,000 17,496,156 16,000,000 14,577,643 14,182,942 13,841,673 14,000,000 13,477,105 12,275,698 12,000,000 11,374,255 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 UNIVERSITY OF MINNESOTA FUNDING SOURCE FOR LEASES WITH UNIVERSITY AS TENANT Fiscal Year 2006 through Fiscal Year 2016 10,000,000 FY06 FY07 FY08 9,000,000 FY09 FY10 8,000,000 FY11 FY12 FY13 7,000,000 FY14 FY15 FY16 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 General Operating Other - Misc - Unrestricted Other - Restricted Sponsored Miscellaneous - Agency Funds & Maintenance Unrestricted Research - Unidentified Funds Restricted Source of Funds NOTE: Miscellaneous column show rents for which sources of funds were not provided UNIVERSITY OF MINNESOTA NUMBER OF LONG TERM LEASES WITH UNIVERSITY AS LANDLORD Fiscal Year 2006 through Fiscal Year 2016 600 591 484 492 500 476 466 462 451 456 465 416 424 400 300 200 100 0 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 UNIVERSITY OF MINNESOTA NUMBER OF LEASES WITH UNIVERSITY AS TENANT BUILDINGS AND LAND - LONG TERM LEASES Fiscal Year 2006 through Fiscal Year 2016 441 450 400 350 Series1 300 Series2 250 204 211 211 187 197 200 179 160 156 162 175 151 155 148 148 138 132 142 144 139 140 150 134 100 50 0 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Long Term Leases for Space to the University Mpls – Hennepin County As Of Date : 06/30/2016 UNIVERSITY OF MINNESOTA Page 1 REAL ESTATE OFFICE SPACE LEASED TO THE UNIVERSITY: LONG TERM From 07/01/2015 To 06/30/2016 Lease Lease Term Area Lessee M&O Source of Number Start Date End Date (S.F.) Rent Rent/S.F./Yr. M&O M &O/S.F./Yr. Obligations Funds L-237 A 01/01/1961 $1.00 00-0-00000-00000 Leased Premises: BRIDGE #9, OVER MISSISSIPPI RIVER (FURTHER LEGAL DESCRIPTION NEEDED) Building: BRIDGE #9 Address: 55455 Occupant: VP FOR UNIVERSITY SERVICES/FACILITIES MANAGEMENT Lessor: FORMERLY NORTHERN PACIFIC RR (NOW BNSF); BRIDGE SOLD TO CITY OF MINNEAPOLIS L-357 B 08/01/2012 07/31/2017 20,484 $530,911.25 $25.92 1000-10044-21119 Leased Premises: SECOND FLOOR Building: MINNESOTA TECHNOLOGY CENTER Address: 1100 WASHINGTON AVENUE SOUTH, MINNEAPOLIS, MN 55415 Continuation: ONE 1-YEAR RENEWAL OPTIONS WITH 180-DAYS NOTICE, SAME TERMS AND CONDITIONS EXCEPT FOR RENT INCREASE AS PER LEASE Occupant: VP FOR HEALTH SCIENCES/AHC/SCHOOL OF PUBLIC HEALTH/EPIDEMIOLOGY & COMMUNITY HEALTH Lessor: PHYSICIANS & SURGEONS CAPITAL CORPORATION,
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