1. Experience Required, Proposals, and Payment.

Transcription

1 Commercial Real Estate Brokerage Services RFP for Tenant Representation Project No.: 6542 Addendum # 1 March 15, 2016 To All Respondents: In connection with the Request for Proposals regarding the Commercial Real Estate Brokerage Services, Tenant Representation released by NYCEDC on March 11, 2016 (the RFP ), this Addendum is being issued pursuant to Section 7.8 of Part II of the RFP. 1. Experience Required, Proposals, and Payment. The Consultant should also be experienced in negotiating lease renewals for an existing office headquarters. Accordingly, for the avoidance of doubt, the RFP is amended as follows, by: (A) deleting Section of Part I of the RFP in its entirety and inserting the following in replacement thereof: Tenant representation to assist in the negotiation of a lease for office space for an approximately 250,000 square foot headquarters within the borough of Manhattan with a focus on the downtown and City Hall submarkets and within the borough of Brooklyn in the downtown submarket, or other areas within New York City that NYCEDC may determine. Also, to assist in negotiating a lease renewal for an existing headquarters. (B) deleting Section of Part I of the RFP in its entirety and inserting the following in replacement thereof: Brokerage Commission Schedule. Respondent may, at its option, submit different brokerage commission schedules with respect to the Services of relocating the NYCEDC to new headquarters and for negotiating a renewal lease for NYCEDC s existing premises. (C) deleting Section 3.1 of Part II of the RFP in its entirety and inserting the following in replacement thereof:

2 3.1 In General. Under the Contract, it is anticipated that in the event that NYCEDC finds and accepts a new premises through the efforts of the Consultant and a lease is executed with the new owner/landlord, or a renewal of the lease for its existing headquarters is entered into, the Consultant will be paid a broker s commission by the owner/landlord of the new premises or the existing premises, as the case may be, based on a real estate brokerage commission at commercially standard rate. Such amount shall not exceed the commission schedule to be negotiated between NYCEDC and the Consultant based upon its response to this RFP. Such amount shall be the maximum compensation for all of the Services provided by the Consultant pursuant to the Contract and all expenses of the Consultant in connection therewith, including costs of any Subcontractors, if any. The Consultant s fee commission shall be payable as provided for in Sections 2.1 and 2.2 of the General Terms and Conditions (Part II) of the Contract and Appendix C (Part III of the Contract). 2. Other Amendments. The draft of Contract is hereby amended as follows by: (A) deleting Section 3.7 of Part II of the Contract in its entirety and inserting the following in replacement thereof: 3.7 Payment by Owner/Landlord. Notwithstanding anything contained in this agreement to the contrary, Consultant agrees that it shall be entitled to a brokerage commission only upon full completion of the Services, and such commission shall be paid by the owner/landlord and not NYCEDC. (B) deleting Appendix B, Scope of Services, of the Contract in its entirety and replacing it with Appendix B attached to this Addendum. 3. All requirements of the original RFP shall remain in full force and effect, except as set forth in this Addendum and any other previously issued Addenda. 4. All capitalized terms set forth in this Addendum shall have the same meaning as set forth in the RFP being amended hereby.

3 THIS ADDENDUM MUST BE SIGNED BY THE PROPOSER AND ATTACHED TO THE TECHNICAL PROPOSAL WHEN SUBMITTED. NEW YORK CITY ECONOMIC DEVELOPMENT CORPORATION By: Maryann Catalano Title: Senior Vice President, Contracts ACKNOWLEDGED AND AGREED: Name of Proposer: By: Title: Date:

4 APPENDIX B SCOPE OF SERVICES PURPOSE OF RFP The New York City Economic Development Corporation ( NYCEDC ) is seeking to award one and/or multiple contracts to qualified firms (hereinafter, the Consultant ) to provide commercial brokerage/tenant representative services. Such services, more fully described in Scope of Services, include site selection, market analysis and lease negotiations. NYCEDC currently resides in 262,504 square feet of office space at 110 William Street in Manhattan. Its lease is due to expire in August of As it contemplates the relocation of its headquarters, it seeks a Consultant to assist in the negotiation of a lease for office space for an approximately 250,000 square foot headquarters within the borough of Manhattan with a focus on the downtown and City Hall submarkets and within the borough of Brooklyn in the downtown submarket, or other areas that NYCEDC may determine. The Consultant will also be asked to negotiate any potential lease renewal with the owner of 110 William Street. All brokerage services must be performed by a broker duly licensed in the State of New York. NYCEDC s goal with respect to real property leases is to negotiate cost effective leases on a timely basis which satisfy the NYCEDC s spatial requirements and are consistent with market standards. SCOPE OF SERVICES - BROKERAGE AND REPRESENTATIVE SERVICES The Consultant selected will be required to provide the following information and services: 1. An initial project schedule and timeline for addressing NYCEDC s space needs, including timelines for site selection assistance, market analysis and valuation, and transaction negotiation. Project schedules will be updated on a monthly basis. The Consultant will regularly interface with designated NYCEDC staff and attend regular meetings to discuss the status of projects. 2. Market research for appropriate space alternatives. The Consultant shall locate and propose spaces of the size, location and type based on the needs expressed by NYCEDC. The Consultant shall prepare a market survey which: a. Recommends the most appropriate site(s) (the Recommended Site(s) ) that may include 110 William Street and includes such information as the address, borough, block/lot, square footage of space offered and square footage of the

5 entire building indicating the major tenants, building amenities, actual (or estimated) operating expenses and taxes, condition of the building and its systems, nearby transportation, major local points of interest and photographs of the Recommended Site(s); b. Enumerates lease comparables, outlining the offering or negotiated terms of such leases, including their operating expense and real estate tax escalations and any other pass-through charges; and c. Presents the offering terms of the Recommended Site(s) consulting with NYCEDC prior to engaging in any negotiations on a Recommended Site(s). The preparation of the market survey report may include progress briefings and will include a summary briefing where the Recommended Site(s) and terms are presented for approval. 3. Arranging inspections of appropriate alternative sites for NYCEDC personnel. During the preparation of the market survey, the Consultant shall help evaluate whether 110 William Street and/or alternative sites are suitable for the NYCEDC s needs (e.g., that it has adequate size, electrical power, HVAC, floor loads, meets structural requirements, etc.) and coordinate site visits. 4. Submit a draft report justifying the proposed transaction(s) to be reviewed and discussed with NYCEDC prior to finalization. The format for such reports will be approved by NYCEDC and may include the following: a. The asking and recommended business terms of the lease for the Recommended Site(s); b. A list of all the comparable sites evaluated, their asking terms, and projected rental terms for the term of the lease; c. Appropriate market data to justify the contemplated transaction(s) at the Recommended Site(s), including the negotiated terms of actual leases in similar properties whenever possible (see Paragraph 2 above); d. A report on the existence and condition at the Recommended Site(s) of any asbestos, building or fire code violations, engineering, structural or any other potentially hazardous conditions. Any such inspections and reports shall be undertaken by a duly licensed expert in the appropriate field; e. Preliminary office space configuration and build out / tenant improvement suggestions to optimize space and office functionality including suggesting amenities for tenant space; and/or f. If more than one Recommended Site(s) satisfies NYCEDC s requirements, a recommendation of the most appropriate alternative based upon a comparative financial analysis.

6 Once approved, the draft report shall be finalized by Consultant. 5. Once the Recommended Site(s) is approved by NYCEDC (the Approved Site(s) ), assist NYCEDC in the negotiation of appropriate business terms, including but not limited to, rent, term, options, escalations, base year, loss factor and landlord s contribution towards base building and tenant improvements. If the Approved Site(s) is not 110 William Street, the Consultant may also be required to concurrently assist NYCDEC in negotiations with the owner of 110 William Street. The Consultant shall also maintain an accurate record of the negotiations, including offering and confirmation letters and provide such documents to NYCEDC. 6. Work with NYCEDC s designated architect and attorneys to finalize the lease for the Approved Site(s). 7. Provide general market and submarket information and comparables as a requested.