EXECUTIVE SUMMARY Page 1 of 28 ITEM NAME: FY 2007-2008 UA Science and Technology Park Annual Report (UA) Action Item Discussion Item Information Item Issue: The Board is provided the FY 2007-2008 Annual Report for the UA Science and Technology Park (UASTP) Previous Board Actions: August 1998 approved UASTP Master Land Use Plan September 1998 approved UASTP authorization to execute a lease and related tenant improvements for the UA Center for Optical Materials & Technology Laboratories March 2001 approved revisions to UASTP Master Land Use Plan March 2001 - approved expansion of the area designated as research park as provided under ARS Section 35-701 to an additional 121 acres April 2001 authorized the University to use Eminent Domain to acquire 39,204 square feet of private property located within the Park November 2004 approved revisions to the UASTP Master Land Use Plan March 2005 approved request to exchange land (132 acres) for KB Home land (65 acres) April 2005 approved Pre-Annexation and Development Agreement and Intergovernmental Agreement with the City of Tucson and KB Home March 2006 approved formation of Research Park Development Corporation (RPDC) August 2006 approved extension of master lease with Campus Research Corporation (CRC) to July 31, 2033 June 2007 authorized UA to sell at public auction 12.86 acres of land at the UA Science and Technology Park September 2007 authorized the formation of a single purpose, non-profit corporation for Contact Information: Bruce Wright, Associate Vice President for Economic Development, 520.621.4930, wrightb@email.arizona.edu
EXECUTIVE SUMMARY Page 2 of 28 the purpose of financing, constructing and operating a hotel and conference center at the Park September 2007 approved two master leases with the Research Park Development Corporation for portions of the Science and Technology Park and the Arizona Bioscience Park June 2008 approved the exchange of 36.71 acres of land at the UASTP with 5151 East, LLC (KB Home Tucson/Lennar Homes) for approximately 11.5 acres of land at 36th Street and Kino Parkway September 2008 approved the bylaws and articles of incorporation of the University Hotel Corporation (UHC) and authorized UHC to sell bonds not to exceed $23 million to fund the construction of a hotel and conference center Project Justification/Strategic Implications: The Park is an integral part of the University and assists the University in fulfilling its research, education and outreach mission. The Park plays a major role in University efforts to commercialize University developed technology. The Park hosts UA South - Pima County and provides internships to University students. Park companies are a major source of employment in Pima County for University graduates. As one of the region s largest employment centers, the Park makes a significant contribution to the economic development of the Tucson metropolitan area. The Park is a revenue source for the University. Project Description and Scope: The UA Science and Technology Park ( Park ) was established in 1994 when the Board, with the assistance of the Arizona Research Park Authority (ARPA), purchased land and improvements in southeastern Tucson from IBM. The Park consists of 1,345 acres of land and 2 million square feet of office, laboratory, testing and support facilities. The Park is home to 40 companies and organizations, including Vail High School, UA South - Pima County, and the Arizona Center for Innovation (AzCI). More than 7,200 people currently work at the Park. See Exhibit 1: UASTP Park Tenants The Park is governed through two non-profit organizations Campus Research Corporation (CRC) and Research Park Development Corporation (RPDC). See
EXECUTIVE SUMMARY Page 3 of 28 Exhibit 2: UASTP Master Land Leases. The Park is managed under the direction of the UA Associate Vice President for Economic Development who reports to the Vice President for Research, Graduate Studies & Economic Development. All major financial transactions are subject to the consent of the President of the University and review by the Board s Capital Committee. The developed portion of the Park, designated as the Project, is operated under the terms of the Project Operation Agreement (POA). Under the POA, IBM serves as the Managing Operator (MO) and operates the Central Utility Plant and maintains the common areas. Arizona Research Park Authority holds the leasehold on 680,000 square feet of space in the Project which it leases to IBM. Campus Research Corporation holds the leasehold on the remaining 1.2 million square feet of space in the Project, which it leases to multiple tenants. CRC operates a 58,000 square foot cafeteria under a contract with Eurest/Canteen. The Park is a member and active participant in the Association of University Research Parks (AURP) and the International Association of Science Parks (IASP). The Arizona Center for Innovation (AzCI), which is located in the Park, is a member of the National Business Incubation Association (NBIA). The UA Science and Technology Park was selected by AURP in 2001 as the Outstanding Research Park in North America. Statutory/Policy Requirements: The Park operates under the provisions of ARS 35-701. The ABOR Capital Committee has requested that the Park provide an annual report on finances and operations. ABOR has requested that ground leases negotiated by CRC and RPDC and all new leases for space exceeding 25,000 square feet and all lease renewals exceeding 50,000 square feet negotiated by CRC be reviewed by the Capital Committee. Financial Performance: CRC had operating revenues of $10.02 million and operating expenses of $7.66 million. It ended FY 08 with consolidated cash-in-hand in the amount of $2.56 million, which consists of $600,000 in operating reserves, $800,000 in capital reserves for building renewal projects, and $1.1 million in hotel cash shortfall reserves until bond sale reimbursement.
EXECUTIVE SUMMARY Page 4 of 28 A copy of the Consolidated Financial Statement of the Campus Research Corporation is provided in Exhibit 3: CRC Consolidated Financial Statements, 2007-08. CRC received a clean and unqualified financial audit for FY 08 from the firm of Beach, Fleishman & Co. CRC transferred $991,000 in deferred distributions to the University in FY 08. The Arizona Center for Innovation, a Limited Liability Company (LLC) of CRC, had a net income of $38,000. AzCI receives financial support from Campus Research Corporation, the University, Wells Fargo Bank and Chase Bank. AzCI has received $471,312 in financial support from CRC since inception. Research Park Development Corporation was not incorporated as a legal entity during FY 08 and had no operating revenues or expenses. (RPDC was incorporated on July 8, 2008.) Economic Impact: The University conducts a biennial economic impact analysis of the Park. Five studies (1997-2007) have been conducted to date. The current study, for year 2007, was conducted by Dr. Jaewon Lim, senior economist in the UA Office of Economic Development. Dr. Lim used the IMPLAN Input-Output model to make the calculations and surveyed and interviewed 31 tenants at the Park. See Exhibit 4: UASTP Economic Impact Analysis. In 2007, the Park had a total dollar impact of $2.45 billion dollars in Pima County and created 13,257 jobs in the regional economy. Park tenants paid $438.9 million in direct wages to their employees with an annual salary per employee of $71,077. (The Pima County average wage is $38,220.) The Park generated $63.9 million in tax revenues including $15.7 million for the City of Tucson, $18.3 million for Pima County, and $29.9 million for the State of Arizona. Between 1997 and 2007, the Park has experienced strong growth in the number of tenant companies, from 17 to 31, and in the number of employees, from 4,173 to 6,175. The percentage growth in new employees at the Park (54%) has been almost three times greater than the percentage increase in the Tucson metropolitan area (19.3%). Over the past ten years, the total economic impact of the Park has increased from $1.52 billion to $2.45 billion or an increase of 60.8%. Leasing Activity: There are 1,893,435 square feet of leasable space in the Project portion of the Park.
EXECUTIVE SUMMARY Page 5 of 28 ARPA controls 622,277 square feet of space, which it leases to IBM under the terms of the original purchase agreement. CRC controls 1,271,157 square feet of space, which it leases to 28 tenants. See Exhibit 5: CRC/ARPA Leasehold. In March of 2008, 599,560 square feet of leasable space migrated from the control of ARPA to CRC and became income-generating property. CRC renewed leases with Raytheon for 548,677 square feet of space or 43.2% of the total CRC leasehold. CRC leased an additional 109,701 square feet of space to Raytheon and IBM in Building 9022 or 8.6% of the CRC leasehold. During FY 2008, CRC leased 54,113 square feet of space to four new tenants Canon USA (6,745 sf), Darling Environmental and Surveying, Inc. (5,156 sf), JAGR (39,709 sf) and Pillar Data Systems (2,503 sf). This newly leased space represented 4.2% of CRC s leasehold and 2.85% of the Project. Over the past nine years, the Park has significantly outperformed the Tucson market in its leasing efforts. During FY 08, the Park had an average vacancy rate of 4.0% compared to 11.6% regionally. CRC had an average vacancy rate in its leasehold of 5.9%. See Exhibit 6: Tucson Comparative Industrial Vacancy. Business Incubation: The Arizona Center for Innovation is a high technology business incubator located in the Park. AzCI serves 15 client start-up companies with 41 employees and associates. Six companies are clients in residence. Three companies are generating positive revenue. Half the client companies are developing products and services using University developed technology. During FY 08, the Park developed new office and laboratory facilities for AzCI, expanding its operations from 3,694 square feet to 7,013 square feet of space; 2,237 square feet of space are chemistry and wet laboratory facilities. Nine client companies have secured one or more AzFast Grants through the Arizona Department of Commerce for more than $35,000 in funding; four clients have received Small Business Innovative Research (SBIR) grants totaling more than $2 million; one client has received a Science Foundation grant of $300,000; and one client has secured angel funding of $1.6 million. Seven clients have filed for patents; two clients have secured their patents; five clients have licensing agreements for their technology; and nine clients are in the alpha or beta stages of product development. Arizona Microsystems and Focal Microsystems, former AzCI clients, were acquired by
EXECUTIVE SUMMARY Page 6 of 28 the 3M Company in 2008. Tenant Relations: With the assistance of an independent consulting firm, Market Intelligence, the Park conducted an analysis and survey of tenant satisfaction. Interviews were conducted with tenant chief executive officers (CEOs) and operations officers. Eighty-one percent of tenants rated the Park facilities as average to excellent and 82% rated tenant services as average to excellent. The Park held four meetings of the Park Users Group (PUG) with the representatives of the tenant companies to discuss and resolve tenant and operational issues. The Park in collaboration with IBM and Raytheon hosted the annual GenNext Day ( take your child to work day ) which was attended by more than 700 employees and their children. Activities included science and engineering demonstrations and interactive booths. In addition to Park employees and children, more than 200 students from community schools attended. Development Efforts: The Park executed an exchange of 124 acres of land with KB Home Tucson at the Park for 54 acres of land at 36 th Street and Kino Parkway for the Arizona Bioscience Park. The Park moved forward with its efforts to develop an executive suite, extended stay hotel and conference center that included completion of a conceptual design for the hotel and hotel site, updating the market analysis and feasibility study, negotiating contracts with the general contractor, operator, bond underwriter and owners representative, and initiating discussion with the hotel franchisor. With the assistance of the Planning Center, the Park drafted a five-year development plan for the western half of the Park that included 100 acres for a regional shopping center, 60 acres for residential development, a 20-acre campus for Vail High School, and a 19-acre hotel and conference center complex. See Exhibit 7: UASTP Development Concept. Park management began twice monthly meetings with the City of Tucson, KB Home Tucson, and Vestar Development to coordinate execution of commitments under the annexation agreement and to advance the design and construction of $23 million in physical infrastructure improvements to the western half of the Park (from Kolb Road to the Pantano Road alignment). Operations: CRC spent $862,000 on building renewal projects within its leasehold, including repairing and refurbishing the exterior skin of Building 9060, roof repairs and coating to
EXECUTIVE SUMMARY Page 7 of 28 Buildings 9024, 9060 and 9072, demolition and rehabilitation to the first floor of Building 9040, and replacement of air conditioning air handling systems in Buildings 9022 and 9040. CRC initiated legal proceedings on behalf of the Board, ARPA and itself against IBM as managing operator to address issues of deferred maintenance and repair on the central utility plant and common areas. The matter is currently in arbitration. Marketing and Business Attraction: The Park marketing team in coordination with the park broker, PICOR Commercial Real Estate Services (PICOR) focused its marketing efforts on leasing the vacant space in Building 9070 and marketing two build-to-suit parcels 10.8 acres adjacent to the Central Utility Plant and a parcel at the south end of the Park spine adjacent to Buildings 9070 and 9072. During FY 07-08, the Park managed 37 qualified business leads in cooperation with PICOR. These included: o Six high-tech lab users ranging from 1,250 to 10,000 sf o Six call centers ranging from 30,000 to 150,000 sf o Five data centers ranging from 30,000 to 100,000 sf o Four wet lab prospects ranging from 300 to 2,000 sf o Three office uses ranging from 1,800 to 32,000 sf o Eight defense-related prospects ranging from 1,200 to 40,000 sf o Two warehouse users of 40,000 sf each o Three manufacturing users ranging from 1,200 to 30,00 sf In addition, the Park responded to 30 requests for information requested by Tucson Regional Economic Opportunities, Inc. (TREO) and the Arizona Department of Commerce (ADOC). The Park marketing team conducted five outbound recruitment trips and made presentations to 12 brokers and 500 prospective tenants. The marketing team hosted 10 site visits of prospective tenants. The Park executed a monthly direct mail campaign targeting 150 high technology firms, 200 commercial real estate brokers and 50 site selection consultants. The Park hosted international delegations from Austria, Canada, China, Hong Kong, Ireland, Germany, Japan, New Zealand, Saudi Arabia, and United Kingdom. The Park was admitted to the EuroOffice Service, a network of science parks and business incubators. Public and Media Relations: During 2007 and the first half of 2008, the Park generated 84 local, state and national
EXECUTIVE SUMMARY Page 8 of 28 press stories. These stories generated an advertising equivalency of $69,651 and 3,039 column inches of coverage. The Park hosted numerous public events and conducted tours for international delegations, community and business leaders, and economic development organizations. The Park was host to a delegation of South American defense members form the Inter- American Defense College. The Park organized and hosted a visit from the Assistant Secretary, Economic Development Administration, US Department of Commerce. The Park provided briefings and tours for Regents Boice, Calderon and DeConcini. The Park served as the site for the graduations of UA South - Pima County and Vail High School. Education and Research: The Park is home to the UA South Pima County. The program occupies 10,448 square feet of space in Building 9040. Facilities include six classrooms, 16 faculty and administrative offices, conference room, student lounge, and learning resource center. UA South receives its space rent free (annual savings of $15,856), but does pay for operational expenses (maintenance, cleaning, utilities). During the Fall of 2007 UA South offered 47 courses at the Park with 33 faculty teaching the courses. During the Spring of 2008, UA South offered 34 courses with 23 faculty teaching the courses. The head count for Fall 2007 was 251 or 121 full-time equivalent (FTE) and 165 in Spring 2008 or 80 FTE. The Park served as a laboratory and classroom for several University colleges, departments and programs, including Architecture, Geography and Regional Development, Latin American Studies, and Planning. The Park is host to Vail High School which occupies 15,152 square feet of space in Building 9040. One hundred and fifty students attended high school on site during FY 08. The Park provided laboratory space to the high school for its robotics program. More than 100 University students pursued internships and cooperative educational programs with park companies during FY 08. Awards and Recognition: The Park was recognized by AZ Business Magazine as one of the Economic Engines of Arizona. The Associate Vice President for Economic Development was awarded the 2008 Career Achievement Award by the Association of University Research Parks (AURP). The Park s international marketing program, Global Advantage, was given the Economic Development Award and Leadership for 2008 by CoreNet, a national
EXECUTIVE SUMMARY Page 9 of 28 association of real estate professionals. Bio Vidria, an AzCI client company, was a 2008 finalist for a Fast Award through the Arizona Bioindustry Association; Bio Vidria s founder was named a Leading Edge Researcher at the 2008 Innovation Day at the UA. Contactless Data, an AzCI client company, was nominated for a 2008 SESAMES Award and was a 2008 finalist for Touching the Future Award as part of the NFC Forum Global Competition. Medipacs, an AzCI client company, received an Excellence in Bioscience Award, 2007 Company of the Year, Medical Device or Instrumentation from the Arizona Bioscience Industry Association Fiscal Impact and Financing Plan: With the assistance of an outside consultant, Park management is in the process of preparing a Ten-Year Business and Financial Plan for the Park. The Plan will be submitted to the University leadership and the boards of CRC, RPDC and ARPA for approval and adoption. Appendices: The following information can be found in the Appendix: Exhibit 1 University of Arizona Science and Tech Park Tenants Exhibit 2 UA Tech Park Master Land Leases Exhibit 3 CRC Consolidated Financial Statements, 2007-2008 Exhibit 4 UASTP Economic Impact Analysis Exhibit 5 CRC/ARPA Leasehold Exhibit 6 Tucson Comparative Industrial Vacancy Exhibit 7 UASTP Development Concept Recommendation to the Board: This report is provided for the Board s information.
Item #: EXECUTIVE SUMMARY Page 10 of 28 [Exhibit 1 University of Arizona Science and Technology Park Tenants] COMPANY DESCRIPTION All Optronics Amplimed Arizona Center for Innovation B2Binformatics biovidria Canon USA CH2MHill Citigroup Cognis Campus Research Corporation Darling Environmental & Surveying Inc. DILAS Diode Laser Inc. Innovative fiber optic components and systems for communication and sensing applications Drug development company High technology business incubator Streamlines data for Bench-to-Bedside research and specializes in populationbased studies Manufactures high-sensitivity slides for DNA and protein microarrays to provide high surface area and optical transparency A leader in consumer, business-to-business, and industrial digital imaging solutions Full-service facilities management under contract for the Park and its full service tenants Global financial services support center Application laboratory provides technical support for the global Cognis Mining Chemicals Technology and Ion-Transfer Technology business units. Markets and manages the University of Arizona Science and Technology Park 3D Scanning/Spatial Imagery Systems/Land Survey Specializing in Precision Measurement Control/Environmental Permitting Manufactures high power diode lasers EnVision Technologies, Inc. Eurest Dining Services Facilities and Plant Services GAAS Corporation General Dynamics Information Technology Grubb & Ellis Management Services, Inc. Hughes Federal Credit Union IBM IBM System Storage Executive Full-service cafeteria management and on-site catering Office building cleaning and plant services GAAS Corporation and its analytical chemistry division -GAAS Analytical is a research and professional services company in the field of bioscience and natural products Provides information technology, systems engineering, program management and training support to the federal government and international sectors Property management services Full service financial institution Storage development for the IBM Corporation; Other divisions include Global Services and the Software Group. Offers briefings, product demonstrations and architectural workshops for
Item #: EXECUTIVE SUMMARY Page 11 of 28 Briefing Center Innovis ISS Facilities Services LGR Medipacs Meriwest Credit Union Modavox MSDx NP Photonics, Inc Pacific Maintenance Pillar Data Systems Inc. Pima Community College Raytheon customers, vendors systems integrators and business partners. Provides rapid, portable and easy to use microbial detection systems Janitorial services Missile Systems R&D Medical device company Quality financial services for residents of Pima County A publicly held developer of patented Internet based software solutions for video and audio applications combining proprietary technology and unique competencies in the networked delivery of digital media worldwide, and provides enhanced communication services. Diagnostic company developing blood test for Multiple Sclerosis Single-Frequency Fiber Lasers and ASEs Office building and facilities maintenance services Application-aware storage systems Offering professional and personal development opportunities to Park employees Aerospace and defense technologies
EXECUTIVE SUMMARY Page 12 of 28 [Exhibit 2 UA Tech Park Master Land Leases]
Page 13 of 28 [Exhibit 3 CRC Consolidated Financial Statement, FY 2007-2008]
Page 14 of 28
Page 15 of 28
Page 16 of 28
Page 17 of 28
Page 18 of 28
Page 19 of 28
Page 20 of 28
Page 21 of 28
Page 22 of 28
Page 23 of 28
EXECUTIVE SUMMARY Page 24 of 28
Page 25 of 28 [Exhibit 4 UASTP Economic Impact Analysis]
EXECUTIVE SUMMARY Page 26 of 28 [Exhibit 5 CRC/ARPA Leasehold]
EXECUTIVE SUMMARY Page 27 of 28 [Exhibit 6 Tucson Comparative Industrial Vacancy ] Tucson Comparative Industrial Vacancy Complexes of 100,000 Square Feet or Larger Metro Tucson Science and Tech Park Percent Vacant Square Feet Percent Vacant Ye ar Total Le a sa ble Total C R C Vac ant Tota l C R C 2 0 08 5. 8% 11. 6% 1,8 9 3, 43 5 1,2 71,1 57 7 4,99 8 4.0 % 5. 9% 2 0 07 3. 9% 8. 2% 1,8 9 3, 43 5 67 1, 59 7 4 6,92 0 2.5 % 7. 0% 2 0 06 11. 0% 2 1.4 % 1,8 9 3, 43 5 61 3, 23 0 4 8,06 3 2.5 % 7. 8% 2005 12.5% 23.8% 1,893,435 613,230 71,685 3.8% 11.7% 2004 10.8% 22.8% 1,893,435 613,230 108,843 5.7% 17.7% 2 0 03 9. 3% 1 9.6 % 1,8 9 3, 19 0 54 2, 68 3 8 3,93 3 4.4 % 1 5.5 % 2 0 02 9. 8% 1 9.7 % 1,8 2 2, 88 8 54 2, 68 3 5, 50 0 0.3 % 1. 0% 2 0 01 6. 8% 1 4.2 % 1,8 2 2, 88 8 54 0, 95 1 1, 20 0 0.1 % 0. 2% 2 0 00 7. 7% 1 5.8 % 1,8 2 2, 88 8 54 0, 95 1 2 2,19 2 1.2 % 4. 1% N ote : D a ta are for fi rst qua rte r of e ac h y ea r. For M e tro Tuc s on, "Tota l is o wne r o cc upie d a nd le a sa ble. Source: Metro politan Tucson Land Use Study, Office of Economic Development, University of Arizona, various years and a s c a lcul ate d.
EXECUTIVE SUMMARY Page 28 of 28 [Exhibit 7 UASTP Development Concept]
Item #: EXECUTIVE SUMMARY Page 10 of 28 [Exhibit 1 University of Arizona Science and Technology Park Tenants] COMPANY DESCRIPTION All Optronics Amplimed Arizona Center for Innovation B2Binformatics biovidria Canon USA CH2MHill Citigroup Cognis Campus Research Corporation Darling Environmental & Surveying Inc. DILAS Diode Laser Inc. Innovative fiber optic components and systems for communication and sensing applications Drug development company High technology business incubator Streamlines data for Bench-to-Bedside research and specializes in populationbased studies Manufactures high-sensitivity slides for DNA and protein microarrays to provide high surface area and optical transparency A leader in consumer, business-to-business, and industrial digital imaging solutions Full-service facilities management under contract for the Park and its full service tenants Global financial services support center Application laboratory provides technical support for the global Cognis Mining Chemicals Technology and Ion-Transfer Technology business units. Markets and manages the University of Arizona Science and Technology Park 3D Scanning/Spatial Imagery Systems/Land Survey Specializing in Precision Measurement Control/Environmental Permitting Manufactures high power diode lasers EnVision Technologies, Inc. Eurest Dining Services Facilities and Plant Services GAAS Corporation General Dynamics Information Technology Grubb & Ellis Management Services, Inc. Hughes Federal Credit Union IBM IBM System Storage Executive Full-service cafeteria management and on-site catering Office building cleaning and plant services GAAS Corporation and its analytical chemistry division -GAAS Analytical is a research and professional services company in the field of bioscience and natural products Provides information technology, systems engineering, program management and training support to the federal government and international sectors Property management services Full service financial institution Storage development for the IBM Corporation; Other divisions include Global Services and the Software Group. Offers briefings, product demonstrations and architectural workshops for
Item #: EXECUTIVE SUMMARY Page 11 of 28 Briefing Center Innovis ISS Facilities Services LGR Medipacs Meriwest Credit Union Modavox MSDx NP Photonics, Inc Pacific Maintenance Pillar Data Systems Inc. Pima Community College Raytheon customers, vendors systems integrators and business partners. Provides rapid, portable and easy to use microbial detection systems Janitorial services Missile Systems R&D Medical device company Quality financial services for residents of Pima County A publicly held developer of patented Internet based software solutions for video and audio applications combining proprietary technology and unique competencies in the networked delivery of digital media worldwide, and provides enhanced communication services. Diagnostic company developing blood test for Multiple Sclerosis Single-Frequency Fiber Lasers and ASEs Office building and facilities maintenance services Application-aware storage systems Offering professional and personal development opportunities to Park employees Aerospace and defense technologies
EXECUTIVE SUMMARY Page 12 of 28 [Exhibit 2 UA Tech Park Master Land Leases]
Page 13 of 28 [Exhibit 3 CRC Consolidated Financial Statement, FY 2007-2008]
Page 14 of 28
Page 15 of 28
Page 16 of 28
Page 17 of 28
Page 18 of 28
Page 19 of 28
Page 20 of 28
Page 21 of 28
Page 22 of 28
Page 23 of 28
EXECUTIVE SUMMARY Page 24 of 28
Page 25 of 28 [Exhibit 4 UASTP Economic Impact Analysis]
EXECUTIVE SUMMARY Page 26 of 28 [Exhibit 5 CRC/ARPA Leasehold]
EXECUTIVE SUMMARY Page 27 of 28 [Exhibit 6 Tucson Comparative Industrial Vacancy ] Tucson Comparative Industrial Vacancy Complexes of 100,000 Square Feet or Larger Metro Tucson Science and Tech Park Percent Vacant Square Feet Percent Vacant Ye ar Total Le a sa ble Total C R C Vac ant Tota l C R C 2 0 08 5. 8% 11. 6% 1,8 9 3, 43 5 1,2 71,1 57 7 4,99 8 4.0 % 5. 9% 2 0 07 3. 9% 8. 2% 1,8 9 3, 43 5 67 1, 59 7 4 6,92 0 2.5 % 7. 0% 2 0 06 11. 0% 2 1.4 % 1,8 9 3, 43 5 61 3, 23 0 4 8,06 3 2.5 % 7. 8% 2005 12.5% 23.8% 1,893,435 613,230 71,685 3.8% 11.7% 2004 10.8% 22.8% 1,893,435 613,230 108,843 5.7% 17.7% 2 0 03 9. 3% 1 9.6 % 1,8 9 3, 19 0 54 2, 68 3 8 3,93 3 4.4 % 1 5.5 % 2 0 02 9. 8% 1 9.7 % 1,8 2 2, 88 8 54 2, 68 3 5, 50 0 0.3 % 1. 0% 2 0 01 6. 8% 1 4.2 % 1,8 2 2, 88 8 54 0, 95 1 1, 20 0 0.1 % 0. 2% 2 0 00 7. 7% 1 5.8 % 1,8 2 2, 88 8 54 0, 95 1 2 2,19 2 1.2 % 4. 1% N ote : D a ta are for fi rst qua rte r of e ac h y ea r. For M e tro Tuc s on, "Tota l is o wne r o cc upie d a nd le a sa ble. Source: Metro politan Tucson Land Use Study, Office of Economic Development, University of Arizona, various years and a s c a lcul ate d.
EXECUTIVE SUMMARY Page 28 of 28 [Exhibit 7 UASTP Development Concept]