1. The Minnesota State Colleges and Universities system is an Equal Opportunity employer and educator. Leasing Space In The Twin Cities Metropolitan Area For Your Campus Greg Ewig, Sally Grans–Korsh, FAIA, LEED-AP Director of Real Estate System Director Facilities Planning 651-296-3852 651-296-7083 Gregory.ewig@so.mnscu.eduGregory.ewig@so.mnscu.edu sally.grans@so.mnscu.edusally.grans@so.mnscu.edu Office of the Chancellor

2. Slide 2 Overview Find the Space Space Plan Business Plan Determine Programs

3. Slide 3 Programs Assumption: exhausted space options on campus require temporary space Major Considerations –New or Existing Programs Test market new programs Swing space for existing programs –Timing - day/evening/weekend –Faculty – receptivity to relocation –Students – convenience and “can I get this class at the time I need.”

4. Slide 4 Business Plan Assumption: 5 year term; expect to subsidize operating costs for 2-3 years Considerations –Consider on-site personnel (IT, management) –Assume a 5 year term (but have the option to extend for another 5 year term) –Operating Expenses / Tenant Improvements –Marketing – create “brand” awareness –Equipment costs

5. Slide 5 Space Plan Assumption: Hire an architect early to help Major Considerations –Examples: space ~12,000 sq. ft. with 6-8 classrooms, faculty offices and touch down space –An architect will translate the program needs into a space estimate –Flexible and technologically up-to-date is key –Leverage building common areas for “touch down” space instead of building it within your own space

6. Slide 6 Finding the Right Space The Process Work with OOC / Real Estate Broker / RFP Market conditions now are beneficial to tenants Narrow building type and preferred location attributes (i.e. accessibility from interstate, bus lines, etc.) Broker will help cast a wide net – 10-15 properties Visit as many properties as you can OOC developed a scoring mechanism for visits Rank the finalists (top 3) and broker and OOC will help negotiate best deal

7. Slide 7 Finding the Right Space Major Considerations –Parking is the critical issue –Security - for evening classes –Signage – can you find it? –Multi-tenant buildings can be tricky –cultural fit having higher ed in an office building –Retail is an option – plentiful parking and amenities are close

8. Slide 8 Other Comments Commercial real estate market is soft – landlords are getting more aggressive Free rent and generous build out allowance not uncommon Think hard about equipment and IT – both one time and ongoing costs

9. Slide 9 Recent Examples

10. Slide 10 7700 France Avenue – Edina Parties: MSU Mankato and Normandale Size: ~12,000 sq ft Start: Fall 2008 Term 5 years Space: –6 classrooms and additional seminar rooms and offices –Two computer lab spaces –Common area in building for gathering; vending food and food available at lunch Parking: Loads! Issue: Lack of building signage

11. Slide 11 The building The building was the former National Car Rental corporate headquarters. Parking galore.

12. Slide 12 The building includes a major atrium and common area space that includes a cafeteria and dining / seating area. Students are able to use this space, which is a great amenity. Inside

13. Slide 13 Signage Issue Signage regulations are VERY stringent in Edina. Only indication of location is the MSU Mankato flag. The university continues to work with building management to seek prominent placement of the building numbers on the building façade.

14. Slide 14 Entry at major space; note continuous use of branding of logo, signage and purple color – even the clock is a MSU Mankato clock ! Signage / Brand

15. Slide 15 Signage

16. Slide 16 Flexibility: Furniture can be relocated and reused when permanent space is available on a campus. Good example of taking advantage of natural light. Computer lab

17. Slide 17 Conference Room

18. Slide 18 Offices Note: branding to the level of the office signs

19. Slide 19 Offices

20. Slide 20 Classrooms

21. Slide 21 Diverse sizes and configurations for Seminar Rooms Mix / Match

22. Slide 22

23. Slide 23 Maple Grove Parties: St. Cloud State University Size: ~ 12,000 sq. ft. Start: Fall Semester, 2009 Term: 5 years Space: 6 classrooms and additional seminar rooms and offices Parking: adequate for evening classes Issues: –Daytime parking –Lack of shared common space in building –Expansion space

24. Slide 24 The building Sign at front marquee

25. Slide 25 First floor entry Reception Reception Desk

26. Slide 26 Main Lobby Area Inside space looking out at new lobby Lobby

27. Slide 27 Breakout room Break out Conference Room

28. Slide 28 Lobby/Study Area Inside/Lobby

29. Slide 29

30. Slide 30 Classroom

31. Slide 31 Counter for Computer Plug in On all classroom

32. Slide 32

33. Slide 33 Office Area Kitchen area with 8 seats and Microwave Office

34. Slide 34 Lots of Available Parking