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LCD-79-316 1 (1979-06-06)

handle is hein.gao/gaobaazil0001 and id is 1 raw text is: SD 101533 zC,. UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 LOGISTICS AND COMMUNICATIONS i109555 DIVISION JUN B-95136 The Honorable Anthony C. Beilenson House of Representatives 109555 Dear Mr. Beilenson: This is in reply to your February 6, 1979, letter, c ncerning the inquiry from a constituent on the leasing of ?' ffice space in Los Angeles, California, by the Equal Employ- J~~'~Vment Opportunity Commission. The constituent stated that the apparent high cost of the space occupied by the Commission does not serve the best interest of the Government. The General Services Administration leases the entire ninth floor, or 12,364 square feet of space, at 3255 Wilshire Boulevard at a rate of $7.60 a square foot fully serviced. At the time the lease was signed in October 1975, General Services estimated that the $7.60 rate was below the fair market value. The term of the lease is from December 1, 1975, through November 30, 1980, with no provision for an automatic renewal. //General Service84presently charges the Commission (the only Federal agency located in the building) $9.79 a square foot under a law which authorizes the Administrator to charge agencies an amount that approximates commercial charges for comparable space and services./The rent charged to other agencies for office space in the Los Angeles area varies between $3.01 and $14.24 a square foot with an overall average of $7.80 a square foot. /4n January 1979 General Services reappraised the value of office space and will increase the amount it charges the Commission to $13 a square foot. The new rate is in line with rents currently being paid by some of the commercial tenants in the building. To allow the Commission time to budget for the rate increase, General Services will not apply the new rate until October 1980/ According to General Services, the Commission had offices in several locations and the offices lacked adequate security before its move to 3255 Wilshire Boulevard. The Commission requested that its new space be located within the boundaries of Wilshire Boulevard, North; Figueroa Street, ast; Adams LCD-79-316 (945168)

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