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Lease Reform. I wish someone would…. Cut down the paperwork I have to do to submit an offer. DONE!!!. I wish someone would…. Get rid of some of these studies and reports that cost too much money. DONE!!!. I wish someone would…. Cut down the entire process so I can get my RENT faster!.
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I wish someone would….. Cut down the paperwork I have to do to submit an offer DONE!!!
I wish someone would….. Get rid of some of these studies and reports that cost too much money DONE!!!
I wish someone would….. Cut down the entire process so I can get my RENT faster! DONE!!! DONE!!! DONE!!!
What is Lease Reform? • A national effort lead by Central Office to change the way we do leasing • Simplifying • Standardizing • Streamlining • Comprehensive changes to both the forms, processes, and philosophy • Initiatives focused on two major areas • Process revisions • Leasing models • Results in a more balanced, user-friendly approach for the private sector
Serious ChangesSignificant Benefits Lease Reform Better Organized Documents A More Balanced Relationship with the Private Sector New Leasing Models and Processes
Serious ChangesSignificant Benefits Better Organized Documents
The Solicitation for Offers Offeror Lessor Offeror Offeror Offeror Offeror Lessor Lessor Offeror Lessor Lessor Lessor Offeror Offeror Offeror Offeror Lessor Offeror Lessor Lessor Lessor Lessor Offeror Lessor Offeror Lessor Offeror Lessor Lessor Lessor Lessor Lessor Lessor Lessor Lessor Lessor
The Solicitation for Offers The Request for Lease Proposal The Lease Lessor Lessor Offeror Offeror Lessor Lessor Offeror Offeror Lessor Lessor Offeror Offeror Lessor Lessor Lessor Lessor Offeror Offeror Lessor Lessor Offeror Offeror Lessor Lessor Offeror Offeror Lessor Lessor Offeror Offeror Lessor Lessor Lessor Lessor Lessor Lessor
The Solicitation for Offers The Request for Lease Proposal The Lease How GSA will select the Lessor The Contract
Award Factors Lowest Price Technically Acceptable Request for Lease Proposal Describes how GSA will determine the winner of the procurement Minimum and maximum square footage Delineated Area Award Criteria Accessibility, Seismic, Fire Safety, Other Criteria
The Solicitation for Offers The Request for Lease Proposal The Lease How GSA will select the Lessor The Contract
The Contract The lease that the Lessor is expected to sign upon being selected The clauses governing the duties and obligations of the Government and Lessor Procedures for initial alterations Cleaning and maintenance Architectural and engineering standards for construction and performance of base building systems Mandatory “General Clauses”
Serious ChangesSignificant Benefits Lease Reform Better Organized Documents A More Balanced Relationship with the Private Sector New Leasing Models and Processes
Serious ChangesSignificant Benefits New Leasing Models and Processes
5 new Lease Models tailored towards different types of common lease types Simplified - small leases with no special requirements Streamlined - small to medium sized leases with few special requirements Standard - any size lease potentially with complex build-out needs Succeeding - continuing occupancy at the existing location On-Airport - specific towards leases at airports (TSA) Documents and procedures are scaled and customized for each type of project Results in much faster projects and lower lease costs New Lease Models
Simplified Lease Model Turn-key lease Designed for small offices with no special requirements Maximum speed All ASRs requirements identified up front All DID drawing reviews expedited, no reviews of CDs Faster occupancy, rent starts sooner
Streamlined lease Model Turn-key and TI Allowance Options Designed for small to medium sized offices with few special requirements DID Workshops All ASRs requirements identified up front Faster cycle time and flexibility to handle special requirements DID Workshop
Standard lease Model TI Allowance model Designed to accommodate larger leases with potentially complex build-out requirements Cycle time 18-24 months Maintain the agreed upon schedule Can handle complicated build-outs
Succeeding lease Model Turn-key lease Designed to provide an expedited procurement process for continuing occupancy at the current location Features faster, more open negotiations with the current Lessor Provides stability for both the Government and Lessor Continuing occupancy with minimal alterations required
DID Workshops A collaborative meeting hosted by the Lessor after award Speeds up the post award process by months Increased collaboration enhances customer satisfaction
Turn-Key LeasingAgency specific requirements (ASRs) • A faster and fairer process for both the Government and the private sector • Offerors submit a bid that includes the actual cost of the required tenant improvements • Offerors with spaces that will cost less to complete are no longer required to bid the same TI allowance as Offerors with space that will cost a lot more • All required tenant improvements are identified up front, eliminating delays after award waiting for the tenant to provide information • Results in faster projects and lower lease costs
Serious ChangesSignificant Benefits Lease Reform Better Organized Documents A More Balanced Relationship with the Private Sector New Leasing Models and Processes
Serious ChangesSignificant Benefits A More Balanced Relationship with the Private Sector
Reduced Paperwork The Old Way The New Way Complete the required fire safety and seismic studies Initial any other specifically required items Initial each page of the SFO attachments Complete the 1364, 1217, 3518 Initial each page of the SFO
E-mail Offers The Old Way Offers must be physically delivered in hardcopy
E-mail Offers The New Way Offer documents may be scanned and emailed to the LCO or designated rep
reduced Pre-lease fire safety reviews The Old Way Every building required a pre-lease Fire Safety Review Whenever GSA leased space over the 6th fl, additional information was required and the report had to be certified by a fire safety engineer
Alarm System Sprinklers Exits C of O issued under any version of the IBC reduced Pre-lease fire safety reviews The New Way All leases under 10,000 ABOA on the ground floor exempt All other leases exempt provided they meet the following:
Alarm System Sprinklers Exits Minimum Fire Safety Requirements Less than 25 yrs old Anytime space is leased above the 6th fl the building must have sprinklers up the highest floor of Government occupancy Space and floor must have 2 exits
The International Building Code (IBC) • Adopted to some degree in every state • Effective statewide - Florida, Georgia, N. Carolina, S. Carolina, Kentucky • Effective locally - Alabama, Mississippi • Any version (year) is acceptable • If your Certificate of Occupancy does not reference the IBC, contact your local code department to determine if your CofO is in compliance with the IBC • Grandfathering is not acceptable for exemption purposes
reduced seismic Studies No Seismic Reviews Exempt under 10,000 ABOA No Exemptions
Revised General Clauses General clauses are part of every GSA contract Major Changes Now subject to prior written consent of the Lessor Subletting and Assignment Lessor now given a set period of time to repair prior to the Govt having the right to terminate Fire Casualty
Offerors are forced to commit their space to GSA procurement for a long time No cash flow until occupancy Successful Offerors must then continue to wait through a lengthy design and build-out process before they receive any payment This new process is more balanced to our private sector business partners More Balanced Approach
3-6 Months 6 Months 6-8 Months 12+ Months Old vs. New The Old Way Lessor commits space to GSA procurement Lessor receives award but still has no cash flow through design and construction Agency Occupies Space GSA receives a space request The New Way GSA receives a space request GSA develops requirements Agency Occupies Space Expedited space procurement Expedited design and construction period
Lease Reform Lease Reform is on on-going process, GSA will continue to look for ways to promote a fair and more efficient process .....and we’re not done yet
Final Thought Around here, however, we don't look backwards for very long. We keep moving forward, opening up new doors and doing new things, because we're curious.....And curiosity keeps leading us down new paths. - Walt Disney
Lease Reform keep moving forward