Due to office space constraints, the Innovation + Technology Services Department (ITS) currently operates out of multiple spaces around the City including conference rooms in the Civic Center, two buildings at Victory and Bull Streets, a building in Laurel Grove Cemetery, and some staff works fully remotely. Real Estate Services staff researched the marketplace for options to potentially facilitate consolidation of ITS, taking into account its unique need for receiving and security of inventory. After evaluating available options, staff recommends leasing 5,040 square feet (SF) of office space located at 1000 Business Center Drive to enhance and more securely facilitate ITS operations.

The negotiated lease rate is $18 per square foot on a triple net basis; meaning the tenant is responsible for a pro-rata share of operating expenses for the building. The initial annual base rent will be $90,720, plus an estimated $13,800 for operating expense pass throughs. The base rental rate will increase at 3% per year. The term of the lease is for three years plus one month, and the City will have the option to extend the lease for two additional, one-year terms. The landlord has agreed to reconfigure access to a loading ramp, demolish some walls, paint all walls, and leave existing furnishings for City use. The City annual contract broker provided a broker price opinion / market rent underwriting report that confirmed the reasonableness of the rental rate. Staff also requests up to $25,000 in furnishings, interior and exterior signage, and accessories to make the space comfortable and appealing for staff and the public.

Approval