lease reform. i wish someone would….. cut down the paperwork i have to do to submit an offer...
TRANSCRIPT
Lease Reform
I wish someone would…..
Cut down the paperwork I have to do to submit an offerDONE!!!
Get rid of some of these studies and reports that cost
too much moneyDONE!!!I wish someone would…..
Cut down the entire process so I can get my RENT faster!
DONE!!!DONE!!!DONE!!!
I wish someone would…..
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
Better Organized Documents
A More Balanced
Relationship with the Private
Sector
New Leasing Models and Processes
Lease Reform
Serious ChangesSignificant Benefits
Better Organized Documents
Offeror
Offeror
Offeror
Offeror
Offeror
OfferorOfferor
OfferorOfferor
Offeror
Offeror
Lessor
Lessor
Lessor
Lessor
Lessor
Lessor
Lessor
Lessor
Lessor
Lessor
Lessor
Lessor
LessorOffero
rOfferorOfferor
Lessor
Lessor
Lessor
Lessor
Lessor
Lessor
Lessor
Lessor
Lessor
The Solicitation for Offers
Offeror
Offeror
Offeror
Offeror
Offeror
Offeror
Offeror
Offeror
OfferorOfferorOffero
rOffero
rOfferor
Offeror
Lessor
Lessor
Lessor
Lessor
Lessor
Lessor
Lessor
Lessor
Lessor
Lessor
Lessor
Lessor
Lessor
Lessor
Lessor
Lessor
Lessor
Lessor
Lessor
Lessor
Lessor
Lessor
The Request for Lease Proposal
The Lease
The Solicitation for Offers
The Request for Lease Proposal
The Lease
How GSA will select the Lessor
The Contract
The Solicitation for Offers
Describes how GSA will determine the winner of the
procurementMinimum and maximum square footageDelineated AreaAward Criteria Lowest Price Technically
AcceptableAward Factors
Accessibility, Seismic, Fire Safety, Other Criteria
Request for Lease Proposal
The Request for Lease Proposal
The Lease
The ContractHow GSA will
select the Lessor
The Solicitation for Offers
The lease that the Lessor is expected to sign upon being
selectedThe clauses governing the duties and obligations of the Government and LessorProcedures for initial alterations
Cleaning and maintenance
Mandatory “General Clauses”
Architectural and engineering standards for construction and performance of base building systems
The Contract
Serious ChangesSignificant Benefits
Better Organized Documents
A More Balanced
Relationship with the Private
Sector
New Leasing Models and Processes
Lease Reform
Serious ChangesSignificant Benefits
New Leasing Models and Processes
New Lease Models• 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
Simplified Lease Model
Maximum speed
Designed for small offices with no special requirements
Turn-key lease
All ASRs requirements identified up
front
All DID drawing reviews
expedited, no reviews of CDs
Faster occupancy, rent starts sooner
Streamlined lease ModelTurn-key and TI Allowance Options
Designed for small to medium sized offices with few special requirements
DID Workshops
All ASRs requirements identified up
front
DID Workshop
Faster cycle time and flexibility to handle special requirements
Standard lease Model
TI Allowance model
Designed to accommodate larger leases with potentially complex build-out requirements
Maintain the agreed upon
schedule
Cycle time 18-24 months
Can handle complicated build-outs
Succeeding lease ModelTurn-key lease
Designed to provide an expedited procurement process for continuing occupancy at the current
locationFeatures faster, more open negotiations with
the current Lessor
Continuing occupancy with minimal
alterations required
Provides stability for
both the Government and Lessor
DID WorkshopsA collaborative meeting hosted by the Lessor after
awardSpeeds 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
Better Organized Documents
A More Balanced
Relationship with the Private
Sector
New Leasing Models and Processes
Lease Reform
Serious ChangesSignificant Benefits
A More Balanced
Relationship with the Private
Sector
Reduced Paperwork
The Old Way The New WayThe New Way
Initial each page of the
SFO
Initial each page of the
SFO attachments
Complete the required fire safety
and seismic studies
Complete the 1364,
1217, 3518
Initial any other specifically
required items
E-mail Offers
The Old Way
Offers must be physically delivered in
hardcopy
E-mail Offers
The New WayThe 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 ReviewWhenever GSA leased space over the 6th fl, additional information was required and the
report had to be certified by a fire safety engineer
reduced Pre-lease fire safety reviews
The New WayThe New Way
All leases under 10,000 ABOA on the ground floor exempt
All other leases exempt provided they meet the following:
Alarm System
Exits
Sprinklers
C of O issued under any
version of the IBC
Minimum Fire Safety Requirements
Alarm System
Exits
Sprinklers
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 Exemption
s
Revised General ClausesGeneral clauses are part of every GSA contract
Major Changes
Subletting and Assignment
Fire Casualty
Now subject to prior written consent of the
LessorLessor now given a set period of time to
repair prior to the Govt having the right
to terminate
More Balanced Approach
•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
Expedited design and construction period
Expedited space procurement
The Old WayThe Old Way
The New WayThe New Way
Lessor commits space to GSA procurement
Agency Occupies
Space
GSA receives a space request
Lessor receives award but still has no cash flow through design and
construction
12+ Months6-8 Months
GSA develops requirements
Agency Occupies
Space
GSA receives a space request
6 Months3-6 Months
Old vs. New
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
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
Final Thought
keep moving forward
Lease Reform