Space Rental Calculation
Occasionally an outside company will want to rent lab space at ISU. The most common scenario is that they plan to move to the research park at some time in the future but are waiting for space to open up or be remodeled. With the support of a university department, we permit these rentals. Below is the process that should be followed:
The rate per square foot will consist of four elements and will be computed by the Controller's Department:
Annual room cost is the cost per square foot times the square footage of the room. Monthly rate is 1/12th of that calculation. A clause will be added to the lease agreement that allows the rates to be adjusted annually.
The model described above is just for the rent of space. If equipment will also be used by the company, we will also need to know the equipment number and whether this will be exclusive use. If exclusive use and the book value is greater than $5,000, we will verify that the equipment was not purchased with Federal funds. If not exclusive use, determine the intended usage and we will compute a depreciation factor based on anticipated use. Equipment depreciation expense and any other expenses to the department (i.e.Telecommunication charges) can go directly into the department's own fund account.
Please contact the Financial Accounting and Reporting staff with any questions regarding the space rental process.