The Headquarters for the Savannah Police Department (SPD) is planned to be renovated.  SPD staff will need to be relocated during the renovations. There are approximately 100 staff involved. Savannah is not a large office market, and quality spaces for accommodating upwards of 100 staff are scarce. Real Estate staff researched the marketplace for options to potentially facilitate SPD staff during renovation of headquarters and inspected five available properties to determine the best fit. After evaluating available options, staff recommends leasing 16,582 square feet of office space located at 6600 Abercorn Street (The Landmark Building) to temporarily relocate police personnel .

The negotiated lease rate is $25 per square foot on a full-service basis; meaning the landlord pays for all expenses including taxes, insurance, utilities, janitorial services, and more. The initial annual rent will be $414,550, and this base rental rate will increase at 3% per year. The term of the lease is for three years, and the City will have the option to extend the lease for two additional, one-year terms. The space is in need of work to meet City needs, and the landlord has agreed to replace carpet in the offices, shampoo carpet in hallways, paint all walls, demolish some walls, and add some doorways. The tenant improvement allowance is just over $10 per square foot. Rent will commence upon completion of these renovations. The City annual contract broker provided a broker price opinion / market rent underwriting report that confirmed the reasonableness of the rental rate.

After renovations to SPD Headquarters are completed and SPD staff are relocated back, then the space will be backfilled with other City staff who are currently officing in substandard conditions.

Recommend approval and authorization for the City Manager to negotiate a final lease agreement in accordance with these business terms, subject to the review and approval of the City Attorney.

Approval