Space Flight

TO BETTER MEET ITS MISSION, HOPKINS CASTS AN EYE OFF CAMPUS FOR OFFICE
SPACE.

This time last year, John Zeller knew he was under a handicap. With another major fund-raising initiative nipping at his heels, his cramped development offices in Reed Hall weren't suited for wooing high-stakes donors. There wasn't a conference room for meetings, a VIP office for donors to grab a few minutes of work time, or even a comfortable chair for them to wait in outside Zeller's office. Worse still, he didn't have any room to
expand the staff he'd need to reach Hopkins Medicine's $1 billion fund-raising goal.

Zeller, therefore, jumped at the chance to move the whole Fund for Johns Hopkins Medicine, with its approximately 95 employees, to 45,000 square feet of custom-tailored offices in the 100 North Charles Street building in downtown Baltimore.

The development-office move is the first major step in a plan to relocate non-direct patient care, teaching
and research functions to off-campus space. An institutional growth spurt in the past three years due to a
jump in research dollars and a regular turnover of department directors has fueled the need for more space on the already-constricted East Baltimore campus.

"We're building new clinical facilities and buildings to provide wet-lab space to accommodate the increase
in research that has come to the campus," explains Rich Grossi, chief financial officer for Hopkins Medicine. "But along with that, we need more research-office space, space to accommodate the needs of new department directors, space for expanded clinical programs and space for teaching."

Hopkins began looking several years ago at available real estate to lease off campus, mainly on an arc that
sweeps from Canton through Fells Point and Inner Harbor East to downtown Baltimore. Grossi says that
for non-direct patient-care offices, an off-campus location can offer more spacious quarters with more
amenities.

According to Jeffrey Koenig, a University real estate development officer, the market for professional
office space in the downtown-Inner Harbor area has gone soft with a downturn in the economy, just as a
number of new office buildings are becoming available. Additional lease space popped up when several
major offices, like the huge law firm of Piper & Marbury, left downtown for the suburbs, and a number of
dot-com companies folded. "This has left a significant amount of empty office space within a mile radius
of the campus," Koenig says.

Grossi points out that the off-campus moves could provide an economic stimulus to the city. In addition
to leasing vacant office space, Hopkins employees will be eating and shopping in the downtown and Inner
Harbor areas and riding more public transportation like the subway or light rail. "A downtown presence
also gives us the opportunity to be as major an employer for the rest of Baltimore as we are to the east
side community," he adds.

The institution's first major off-campus lease acquisition has been three floors of the 100 North Charles
Street building owned by Baltimore Orioles principal owner and lawyer Peter Angelos. Grossi says
Angelos agreed to include renovation costs in the rent, which helps the institution spread that expense
over a longer period of time.

To Zeller, the move was a blessing. "We badly needed space to expand," he says. "Having everyone in the
same location also has helped improve our productivity at the new quarters." Zeller also has a VIP office
where prospective donors can conduct their business in between meetings with top University officials.

The institution found parking within a block or two of 100 North Charles for those development
employees who were willing to pay the same premium rate they were paying on campus. But Grossi
concedes that parking downtown is a problem. The city doesn't have nearly enough off-street parking, he
says, to meet the needs of downtown office workers.

He estimates that Hopkins Medicine will need about 50,000 square feet of additional off-campus space to
meet its needs over the next several years. The institution, meanwhile, is looking at space in five or six
more buildings scattered through the Canton-to-downtown arc for the additional room.

The Hopkins Medicine space committee has developed a list of offices not involved in direct patient care,
teaching or research as possible candidates for moving off campus. "Obviously, departments have major
concerns about relocating," Grossi says, "but there's no other way out of this dilemma. Clinical offices,
education and research space come first."

One move that has become part of the off-campus migration involved the human resources departments
for the School of Medicine and the Hospital. They left the 1830 Building and Phipps and moved to the
professional office building at the former Church Home Hospital site. The graduate medical education
program offices will be moving from the ground level of the Hunterian Building-which will be converted to
lab space for cell biology-into the vacated HR offices.

Dean/CEO Edward Miller and Hospital and Health System President Ron Peterson will sign off on every
relocation. "I'm sure that everyone on the list feels they can make a strong case for staying on campus,"
Grossi admits. "But we're resigned to the fact that these offices eventually will have to move for the next
few years."

CHANGE
June 5, 2002
Volume 6, Number 11