The use of applicable RPM Division template Lease Contract
documents is required unless it is determined that such documents are either
not practicable or not advantageous to the State for the specific lease request
in the opinion of the RPM Division Director. Any deviations and/or
supplementary conditions to template forms and/or template contract shall be
clearly identified in the applicable sections of the template documents. Lease
Contracts shall generally be on the basis of Rental Rate times Space at a
specified Location over a specified Term.
(1)
Rental Rate - Rate may be
flat and fixed throughout the lease term or may be graduated. Utilities,
custodial, security and tenant improvements may be included, but if so, must be
incorporated into the rate over the lease term.
(2)
Space - The methodology for
measurement of space in buildings, the Rentable Area, shall be measured in
accordance with the BOMA standard, latest edition. The Occupant Area component
of the Rentable Area shall be computed by measuring to the inside finish of
permanent exterior building walls to the interior face of public corridors
and/or other permanent non-tenant partitions, and to the center of demising
walls. Excluded from such calculation shall be any / all Building Service Areas
and any / all Major Vertical Penetrations. In multi-tenant buildings only, the
pro-rated portion of Building Amenity Areas may be included in the Rentable
Area.
(3)
Location -
The city, county or municipality at which the real property is to be leased
shall be clearly identified by street address or other definitive description.
(4)
Term - Real
estate markets can be highly volatile and dramatic shifts in prevailing rates
can occur over relatively short periods of time. Longer leases can provide
predictability, and can hedge against future increases when market conditions
rise, but can also expose agencies and departments to higher than prevailing
rates when market conditions fall. Shorter leases can provide flexibility, but
can also be higher due to uncertainty to potential Lessors. The desired initial
and renewal terms, if any, should be carefully analyzed and considered to
optimize these factors. Maximum terms shall be as follows:
a.
Initial Term - Initial term
of leases may be entered into for a period of time not to exceed twenty (20)
years, unless otherwise indicated in 300.9 Non-Competitive
Proposals.
b.
Renewal Terms - Not required, but if included, shall not exceed
two (2) renewal terms of not more than five (5) years each, unless otherwise
indicated in 300.9 Non-Competitive Proposals. Where Rental
Rate for renewal terms was not identified in the initial RLP, renewal Rental
Rate shall be assumed to be the rate effective at the end of the initial term.
(5)
Normal
Working Days - Unless otherwise noted in a specific Lease, shall mean
Mondays thru Fridays exclusive of State and Federal Holidays.
(6)
Normal Working Hours -
Unless otherwise noted in a specific Lease, shall mean 8:00 a.m. to 6:00 p.m.
each Working Day.
