1. Lease Reform

2. I wish someone would….. Cut down the paperwork I have to do to submit an offer DONE!!!

3. Get rid of some of these studies and reports that cost too much money DONE!!! I wish someone would…..

4. Cut down the entire process so I can get my RENT faster! DONE!!! I wish someone would…..

5. 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

6. Serious Changes Significant Benefits Better Organized Documents A More Balanced Relationship with the Private Sector New Leasing Models and Processes Lease Reform

7. Serious Changes Significant Benefits Better Organized Documents

8. Offeror Lessor Offeror Lessor The Solicitation for Offers

9. Offeror Lessor The Request for Lease Proposal The Lease The Solicitation for Offers

10. The Request for Lease Proposal The Lease How GSA will select the Lessor The Contract The Solicitation for Offers

11. Describes how GSA will determine the winner of the procurement Minimum and maximum square footage Delineated Area Award Criteria Lowest Price Technically Acceptable Award Factors Accessibility, Seismic, Fire Safety, Other Criteria Request for Lease Proposal

12. The Request for Lease Proposal The Lease The Contract How GSA will select the Lessor The Solicitation for Offers

13. 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 Mandatory “General Clauses” Architectural and engineering standards for construction and performance of base building systems The Contract

14. Serious Changes Significant Benefits Better Organized Documents A More Balanced Relationship with the Private Sector New Leasing Models and Processes Lease Reform

15. Serious Changes Significant Benefits New Leasing Models and Processes

16. 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

17. 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

18. 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 DID Workshop Faster cycle time and flexibility to handle special requirements

19. 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

20. 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 Continuing occupancy with minimal alterations required Provides stability for both the Government and Lessor

21. DID Workshops A collaborative meeting hosted by the Lessor after award Speeds up the post award process by months Increased collaboration enhances customer satisfaction

22. Turn-Key Leasing Agency 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

23. Serious Changes Significant Benefits Better Organized Documents A More Balanced Relationship with the Private Sector New Leasing Models and Processes Lease Reform

24. Serious Changes Significant Benefits A More Balanced Relationship with the Private Sector

25. Reduced Paperwork The Old Way The 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

26. E-mail Offers The Old Way Offers must be physically delivered in hardcopy

27. E-mail Offers The New Way Offer documents may be scanned and emailed to the LCO or designated rep

28. 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

29. 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 Exits Sprinklers C of O issued under any version of the IBC

30. Minimum Fire Safety Requirements Alarm System ExitsSprinklers 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

31. 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

32. reduced seismic Studies No Seismic Reviews Exempt under 10,000 ABOA No Exemptions

33. Revised General Clauses General clauses are part of every GSA contract Major Changes Subletting and Assignment Fire Casualty Now subject to prior written consent of the Lessor Lessor now given a set period of time to repair prior to the Govt having the right to terminate

34. 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

35. Expedited design and construction period Expedited space procurement The Old Way The 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

36. 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

37. 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

38. keep moving forward Lease Reform