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Q&A
Discussion on tenant representative firms' selection and contracts
1:11:35
·
110 sec
Council Member Brewer inquires about the selection process and contracts for tenant representative firms Cushman & Wakefield and CBRE. Commissioner Molina explains the history of their selection, upcoming plans for a new RFP, and details about commission payments.
- CBRE and Cushman & Wakefield were selected as tenant representatives in 2017
- The original contract was for 3 years with a 2-year renewal option
- DCAS is preparing a new RFP to expand the number of tenant representatives
- Commission payments for tenant representatives are capped and paid by landlords, not the city
Gale A. Brewer
1:11:35
So one of my questions before you were there, of course, these 2 real estate companies were selected.
1:11:42
How do you know how how long their contract is or how does how is that contract determined, etcetera, etcetera, Cushman, and Wakefield and CBRE because and also how do we know what their commission commission payments are?
1:11:58
Just in terms of those 2 companies.
Louis Molina
1:12:00
Got it.
1:12:01
So I can go back to 2017 is when CBRE Group and Cushman and Wakefield were selected as the tenant representatives for the city They're also known as brokers.
1:12:13
Those kind of are interchangeable and title back in 2017.
1:12:19
That contract was 3 years long with 1, 2 year renewal.
1:12:24
And there have been negotiated acquisition extensions since then.
1:12:28
We are preparing to have an RFP, which is guided by procurement rules, which is different than our real estate transactions.
1:12:38
That's going to be really soon.
1:12:40
So that we can expand the number of tenant representatives that can represent the city on real estate transactions.
Gale A. Brewer
1:12:46
Okay.
1:12:46
That's a good thing.
1:12:47
So let them go in go out soon to have perhaps some new people representing the city.
1:12:52
In these tenant discussions.
Louis Molina
1:12:54
What's a competitive
Gale A. Brewer
1:12:55
Right.
1:12:55
We'll see.
Louis Molina
1:12:56
PPP process.
1:12:57
Exactly.
1:12:58
We'll see.
Gale A. Brewer
1:12:58
And then their commissioning payments, are those hidden from the public, or does one get to know what they make on these deals?
Louis Molina
1:13:05
Well, it's it's it's in the contract and what we have in the tenant rep contract is a cap.
1:13:11
So these tenant representatives also represent some of the locations being proposed and the commissions that tenant representatives get are paid by the landlords, they're not paid by the city.