Brookfield Office Properties engaged Colliers’ government solutions professionals in 2013 to manage the renewal of the United States Secret Service (USSS) lease at 725 South Figueroa Street in downtown Los Angeles. The approximately 95,000-rentable-square-foot facility was the largest USSS field office in the United States outside of the District of Columbia, and it was a critical tenant in Brookfield’s Los Angeles portfolio. General Services Administration (GSA) was intent on running a 10-year, firm-term, full and open procurement.
Even though the current property accommodated the complex needs of the office, including a vehicle repair area for the President’s limousine and secure parking for 205 government vehicles, we immediately recognized there was a risk of losing USSS to a competitive property.
Strategy: We worked with Brookfield to quantify the government’s investment in the building. Throughout repeated conversations with the contracting officer and no fewer than five official offers, we hammered at the costs of relocating USSS. Through our market intelligence, we learned that there was at least one extremely competitive and viable property. We ran many different hypothetical offers for that property through our financial models. From that analysis, it was clear that we needed the government to correctly account for its true relocation expenses to ensure a renewal.
To obtain the level of confidence we needed, Brookfield filed an agency-level protest with GSA. GSA recognized the validity of our position and agreed to take corrective action. GSA revised the solicitation provisions to account for additional move and relocation costs and reduced the tenant improvement allowance that Brookfield would be required to fund from $57.22/ABOA SF to $5.52/ABOA SF.* We were also successful in obtaining favorable “as existing” language, which further reduced Brookfield’s out-of-pocket expenses.
The new 10-year, firm-term, renewal lease was signed July 13, 2015 — more than two years after our initial offer was submitted.
* ABOA = ANSI/BOMA Office Area