Q. By what authority does the Office of Management and Enterprise Services administer the state leasing program for real property?
A. Oklahoma State Statutes: 74 O.S. §63; 74 O.S., §94; and 73 O.S., §163; Oklahoma Administrative Code: 260:95-1
Q. What is the role of the Real Estate and Leasing Services Office?
A. The Office of Management and Enterprise Services is statutorily charged with the responsibility for assigning all space in state owned and non-state owned facilities, authorizing the amount of space to be acquired by state agencies, and executing all leasing contracts on behalf of state agencies. The Director of the Office of Management and Enterprise Services has delegated these responsibilities to the Real Estate and Leasing Services Office.
Q. What services does the Real Estate and Leasing Services Office provide to agencies?
A. The Real Estate and Leasing Services Office provides general assistance to state agencies in all aspects real property contracting, including easements, mineral leases, surface leases, purchase, sale or transfer of real property, acquisition of leased space, and contract management.
Q. How do I obtain a leasing form?
A. Click on the Real Estate and Leasing Services link in the left-side navigation on the Division of Capital Asset Management home page, then click the Forms link.
Q. What is the first step to lease any type of new or additional space (office, warehouse, storage, hangar, group home, etc.)?
A. An agency must submit a Space Request form (DCAM-FORM-SL-189-A) to the Real Estate and Leasing Services Office. An agency is restricted from looking for space until the square footage authorization has been made by DCAM.
Q. Can an agency lease space without going through REALS if the annual rent will be less than the agency’s procurement dollar threshold?
A. All leases for space, regardless of size and dollar value, must be authorized by the Real Estate and Leasing Services Office. Leasing of real property is not included in the Central Purchasing Act; therefore, Central Purchasing procedures and purchasing thresholds are not applicable.
Q. Can an agency use free space?
A. Free space can only be accepted by the governor through appropriate documentation from the agency as the use of free space is considered to be a gift to the state. In such case, the agency must still submit a Space Request to Real Estate and Leasing Services, and a written agreement will be required. Contact the Real Estate and Leasing Services Office for further instructions.
Q. Can an agency locate new space, and then submit a Space Request?
A. The Space Request must be approved by REALS prior to seeking new space. Ref: OAC 260:95-1-5.
Q. How much space is allocated to an agency?
A. Generally, the base formula for space allocation to an agency is 150 square feet per FTE. Additional square footage may be allocated for special space needs (e.g.: conference room, file cabinets, storage, etc.) if the space meets the criteria defined in 260:95-1-4.
Q. How much space is allocated to each employee?
A. Although an agency is authorized 150 square feet per FTE, the square footage is an allowance to the agency. An individual employee is not entitled to a specific amount of square footage.
Q. Will an agency be authorized for additional square footage if it needs, or wants, private offices?
A. No additional square footage is allowed for the purpose of providing for private office space. Further, no private office within the total amount of space allowable to the agency can exceed 300 square feet.
Q. When is an agency required to advertise for space?
A. Advertisement is mandatory if the authorized amount of space exceeds 2,500 square feet. An agency may also be required to advertise for space less than 2,500 square feet at the discretion of the Real Estate and Leasing Services Office.
Q. Can an agency use a real estate broker to locate space?
A. An agency can deal only with a building owner, building manager, or primary listing broker of a property.
Q. What is the rental ceiling?
A. The ceiling, established by the Office of Management and Enterprise Services (OMES), is the maximum rental consideration to be made for non-state owned facilities. It is not to be interpreted as the standard rate, only as the maximum annual rate per square foot. Until further notice, the OMES’ statewide rental ceiling shall be based on the following:
Full Service Lease (includes all utilities and 5 day per week janitorial services): The rate shall not exceed $9.00 per net useable square foot per year. The $9.00 ceiling will be reduced by 25 cents per day for each day that the janitorial services are below 5 days per week (maximum deduction of $1.25/SF per year).
Net Lease (excludes utilities and/or janitorial services 5 days per week): The total cost to the agency for rent, utilities, and janitorial shall not exceed $9.00 per net useable square foot per year. The cost for utilities to be provided by the agency, and/or the cost for janitorial services, must be added to the base rental rate in order to determine the total annual per square foot rate. Further, the $9.00 ceiling will also be reduced by 25 cents per day for each day that janitorial services are below the 5 day per week standard. If the total cost exceeds the rental ceiling, the base rental rate must be decreased accordingly.
Exceptions to the above rental ceiling will be considered on a case-by-case basis by OMES.
Q. Can an agency pay to remodel space?
A. The state cannot legally make permanent improvements to private property (i.e. electrical, lighting, etc.). All construction/renovation costs are the responsibility of the property owner. If the agency requires an improvement after initial occupancy, contact the Real Estate and Leasing Services Office for assistance.
Q. Does space need to meet A.D.A. requirements?
A. Yes. At a minimum, the space should have an A.D.A. restroom and the entrance into the space must be accessible. The degree of compliance will be determined by the agency as determined necessary to meet appropriate staff and programmatic needs for the specific space. Consult the Real Estate and Leasing Services Office or your agency A.D.A. officer for assistance.
Q. Who does the fire inspection and who is responsible for requesting the inspection?
A. Your agency is responsible for requesting the inspection from the State Fire Marshal or the applicable City Fire Marshal.
Q. Who does the asbestos inspection, and who is responsible for requesting the inspection?
A. Your agency is responsible for contacting the State Department of Labor to request an inspection.
Q. Can a lease be renewed on the same terms and conditions at the end of the last option period if the Lessor failed to provide the 6 month notification of intent to change the lease?
A. Yes, notification is required in accordance with specific language in the applicable Lease Agreement, and the Lessor failed to comply the lease may be renewed under the terms and conditions of the current contract period. Contact the Real Estate and Leasing Services Office for further information on procedures.
Q. What documentation is required for a lease renewal?
A. The documentation includes:
- A current Certificate of Insurance. The Certificate Holder should be: Office of Management and Enterprise Services, ATTN.: Administrator of State Leasing, PO Box 53448, Oklahoma City, OK 73152-3278. The Certificate of Insurance can be obtained by the agency directly from the insurance company or the agency may require the vendor to provide it. Refer to the current Certificate for the insurance company's contact name and phone number.
- Documentation of Lessor’s payment of current ad valorem taxes from the County Treasurer. (Lease term starting after March 31, documentation of full payment; lease term starting before March 31, documentation of first ½ of payment). The tax documentation can be obtained by the agency directly from the applicable county treasurer or the agency may require the vendor to obtain it.
- DCAM-FORM-SL-289-D, signed and dated by authorized agency personnel and Lessor if the lease is not eligible for renewal via change order. A DCAM-FORM-SL-289-D is required only if the last option to renew has expired and the lease did not contain a clause allowing for renewal if proper six (6) month notification was not provided (See: When can a lease be renewed via a Change Order?)
- Purchase requisition or purchase order showing the new contract period.
Q. When can a lease be renewed via a Change Order?
A. A Renewal Lease Agreement form will not be required if both the following conditions exist:
- There are any options remaining to renew the existing lease for another year; and,
- All terms and conditions remain the same unless a change has occurred via a legal alteration to the lease which had been authorized by REALS.
Proper documentation of payment of ad valorem taxes and a Certificate of Liability Insurance are still required with a renewal via Change Order.
Q. What happens if the owner wants a rate increase, but we still have options to renew in accordance with the terms of the lease?
A. The owner is legally bound by the terms and conditions of the Lease Agreement and cannot increase the rent until the expiration of the last option year.
Q. What happens if the owner wants to terminate the lease, but we still have options to renew per the terms of the lease?
A. A lease is a legally binding contract; therefore the agency is legally entitled to occupy the space until the end of the last option period.
Q. If the building leased by the agency is sold, what do we do?
A. The agency must use a Change of Lessor form to make a change of ownership of a property. Reference DCAM-FORM-SL-289-F for instructions and required documentation.
Note: The lease agreement follows the ownership of the building; therefore, the new owner must comply with the terms and conditions of the Lease Agreement.
Q. Can our agency purchase or lease-purchase a building?
A. The agency must have specific statutory authority to purchase or lease-purchase real property. If the agency has such authority, contact the Office of Management and Enterprise Services for information regarding this type of transaction.