Client:

Lend Lease Real Estate Investments and State of Florida

Primary Services Provided:

• Development of GSA Leasing Strategy
• Financial Analysis of Offer
• Preparation and Submission of Offer
• Negotiation of Offer
• Development of Lease Language
• Conflict Resolution of Leasing and Management Issues
• Post Lease Award Services

Project Overview:

Franklin Court is an eleven-year old Class “A” office building located in the East End of Washington, DC. The office component of Franklin Court is 97% leased by the federal government consisting of 6 leases totaling approximately 410,000 square feet. Of which, 95% of the space expired within a one year period. Two leases represented 6 agency user-groups. Lend Lease engaged Public Properties to reposition the government leases.

Primary Leasing Strategy:

• Eliminate vacancy risk – succeed all leases
• Succeed all leases @ market rates
• Consistency in ongoing property management
  procedures for all leases
• Reduce ownership exposure to cost of ongoing
  maintenance and repairs

Meeting Client Needs:

• Utilized the Advanced Acquisition Program as contract vehicle
• Supported GSA on identifying agency lease related needs – encouraged cooperation between ownership and GSA
• Negotiated “As Is” language in all leases – reduced ownership’s exposure to provide new building shell items and/or rent credits
• Negotiated lease language to identify ownership and government responsibilities – included projected cost to maintain such items
  in the rate

Cost to Client:

Public Properties achieved a 30% overall increase over the succeeded rate with no vacancy exposure and a 10 year firm term lease on one-third of the space. In addition, ownership’s ongoing management and cost exposure were clarified, greatly reducing the potential of unknown expenditures and lease conflicts.