Title
CATS Property Management and Leasing Services
Action
Action:
A. Approve a contract with NAI Southern Real Estate for Property Management and Leasing Services for an initial term of three years, and
B. Authorize the City Manager to renew the contract for up to two, one-year terms with possible price adjustments and to amend the contract consistent with the purpose for which the contract was approved.
Body
Staff Resource(s):
Brent Cagle, CATS
Victoria Johnson, CATS
Craig Fox, CATS
Explanation
* The Charlotte Area Transportation System's (CATS) contracted property management services include maintenance, janitorial, and landscaping services, as well as management of tenant leasing of its parking decks and the Charlotte Transportation Center (CTC).
* In 2018, the CATS executed a Property Management and Leasing Contract with NAI Southern Real Estate for several park and ride parking decks.
* In 2020, CATS executed an additional, separate agreement with NAI Southern for Property Management and Leasing at the CTC.
* On June 12, 2024, CATS issued a Request for Proposal (RFP) that combined the Property Management and Leasing responsibilities at the CTC and park and ride parking decks; two responses were received.
* NAI Southern Real Estate best meets the needs in terms of qualifications, experience, cost, and responsiveness to the RFP requirements.
* Under the contract:
* NAI Southern Real Estate will be reimbursed an estimated $1,399,718 annually for expenses paid on behalf of CATS to operate and maintain the CTC and parking decks;
* The annual management, staff, and administrative fees are estimated to be $286,500; and
* Any commissions due to NAI Southern Real Estate for new or renewed leases will be paid in accordance with the contract. The annual commissions rates within Industry standards and are estimated to be $229,714.
* Total annual expenditures are estimated to be $1,915,952.
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