STRATEGIC PRIORITY: Core
AGENDA DATE: June 25, 2025
COUNCIL DISTRICT(S): Citywide
DEPARTMENT: Department of Facilities and Real Estate Management
EXECUTIVE: Donzell Gipson
______________________________________________________________________
SUBJECT
Title
Authorize a professional services contract for real estate consulting services with CBRE, Inc., in an estimated amount of $400,000.00 - Financing: General Fund
Body
BACKGROUND
This contract is being established in accordance with A.D. No. 4-5, Contracting, Paragraph 10.5.6 (A) for Special Need/Justification, which allows for consulting services to be contracted with a specific firm when the experience indicates one consultant can best provide the required service. CBRE, Inc. (CBRE) is uniquely positioned to provide the required services based on its extensive and recent experience with the City’s real estate operations, portfolio and prior contractual engagement. Approval of this special needs request will allow for continuity of service and prevent delays in critical real estate initiatives.
CBRE has previously served as the City’s real estate brokerage and advisory firm under a contract that included two allowable extensions, both of which were exercised. A new formal solicitation is currently in process, with the new contract potentially not in place until late summer or early fall of 2025. In the meantime, Department of Facilities and Real Estate Management (FRM) must continue to advance priority real estate efforts that align with the City Council and the City Manager directives. Several time-sensitive real estate projects require immediate and ongoing support. Delays in these efforts could result in missed market opportunities or diminished returns due to changing economic conditions. The key services CBRE provides but are not limited to real estate advisory and strategic planning, market research and valuation analysis, collaboration with departments, recommendations related to industry best practices and process/procedure audits.
Approval of this request will allow FRM to move forward with key real estate initiatives without delay, maintain momentum on the City Council-directed projects, and ensure the City continues to receive the benefit of professional, expert-level guidance during a critical transition period.
ESTIMATED SCHEDULE OF PROJECT
Began services April 2025
Complete services April 2026
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
This item has no prior action.
FISCAL INFORMATION
|
Fund |
FY 2025 |
FY 2026 |
Future Years |
|
General Fund |
$400,000.00 |
$0.00 |
$0.00 |
M/WBE INFORMATION
In accordance with the City’s Business Inclusion and Development Policy adopted on September 23, 2020, by Resolution No. 20-1430, as amended, the M/WBE participation on this contract is as follows:
|
Contract Amount |
Procurement Category |
M/WBE Goal |
|
$400,000.00 |
Professional Services |
38.00% |
|
M/WBE Subcontracting % |
M/WBE Overall % |
M/WBE Overall Participation $ |
|
39.00% |
39.00% |
$156,000.00 |
|
• This contract exceeds the M/WBE goal. |
|
• CBRE, Inc. - Local; Workforce - 100.00% Local |
PROCUREMENT INFORMATION
This item was procured in accordance with A.D. No. 4-5, Contracting, Paragraph 10.5.6 (A), which allows for:
Special Need/Justification - This process enables an initiating department with a special need to contract for consulting services with a specific individual or firm without utilizing either of the processes described in subsections 10.5.4 or 10.5.5. A special need exists where (1) experience indicates that only one consultant can best provide the required service, or (2) where an emergency necessitates the immediate hiring of a consultant. A memorandum of justification with prior approval of the City Manager is required.
OWNER/EXECUTIVE
CBRE, Inc.
Peter Jansen, Executive Vice President