2013-14 Operating & Capital Budget Plan - Cornell University ...

Capital Plan — 2013–1448LEASED SPACEIn addition to the facilities the university owns tocarry out its mission, Cornell has a relatively extensiveportfolio of leased space, both as tenant and landlord,at its Ithaca and New York City locations and in otherparts of the state, the country, and the world.As a tenant, Cornell leases approximately 1.2 millionsquare feet of space, nearly 75 percent of which is forthe Medical College in New York City (see Figure 15).The space leased by the Medical College (nearly 900thousand square feet) is 80 percent for college usesand 20 percent for the Physicians Organization. Thespace leased for non-Medical College uses is largelyin New York State – Tompkins County (53 percent),New York City (24 percent), and other New YorkState (8 percent) – but also in other parts of the U.S.(13 percent) and the world (2 percent).As a landlord, the university leases approximately300 thousand square feet to others. Nearly all of it(92 percent) is in Tompkins County and two-thirdsof it is commercial space, with the balance beingprincipally residential and storage.The schedule of lease commitments by operatingunit identifies the present value of payments onleased space for the remaining lease term, the sourceof funding for those costs, and the annual amount foreach of the next three fiscal years (see Table 9). Thepresent value of all current space lease commitmentsis approximately $195.8 million, more than 80 percentof which is for space for the Medical College. In addition,the projected cost for new leases or lease extensions,with a present value greater than $250,000to be executed over the next three fiscal years, totals$23.6 million in present value.Leased Space ProcessIn December 2012, the university approved an updatedprocess for the identification of need, review,and approval of leased space. Prior to pursuing anynew lease or lease extension with a term of one year ormore, the request must be reviewed by the university’sSpace Use Advisory Committee. Once the need hasbeen vetted and confirmed by that group, the identificationof space to be leased and negotiation ofterms will be done by the Real Estate department inIthaca or relevant unit in New York. The lease transactionapproval levels and authorities have notchanged, but the request for approval is now to besubmitted through a standardized Lease ApprovalRequest document, similar in nature to the ProjectApproval Request used for capital projects.Figure 15. Cornell Leased Space by Unit