T-2024-1215 - Property Services Leasing Panel
The Council of the City of Sydney ("the City") invites tenders for the carrying out of property management services in accordance with this Request for Tender.
Property Services manages and maintains the City's property portfolio. The portfolio comprises some 418 assets covering 250 buildings, including operational, community, commercial, industrial, residential, and public-domain properties, with the potential to generate over 1200 leases and licences on foot and approximately 400,000 m2 of net lettable area (including City-occupied buildings). A portion of these assets provides a significant commercial rental return (i.e., rental income from Property Services is the second-largest revenue contributor to the City), enabling the City to channel funds back into maintaining, improving, and/or expanding services within the local government area.
The City recently moved to a new operating model within Property Services, which included significant changes to the workforce structure. The new operating model means the City is taking responsibility for the tenant relationship and accountability for portfolio asset management.
Scope Summary
This tender is intended to establish panels for its Property Portfolio across the commercial, industrial, and retail market segments. The required services are:
- leasing services from marketing, engagement to occupancy
- property and market rental valuations
- leasing and property surveys.
The City proposes to enter into an agreement with each panel service provider for a period of 3 years plus a 3-year optional extension term.
Details of the City's Property Portfolio, including leasing information can be found in our Land Register here:
https://www.cityofsydney.nsw.gov.au/council-governance-administration/open-access-information
Objective of this Request for Tender
The City is seeking to establish panels that will cover a wide range of property-related services:
- Work Lots 1- 3 - Leasing Services: Providers will handle tenant search, marketing, Heads of Agreement negotiations and project leasing. Once a suitable tenant has been identified, the Provider will hand-off the tenant to the City, who will manage the execution of the Lease, ongoing tenant relationship and lease management. Providers will be paid according to the agreed schedule of rates,
- Work Lots 4 - 6 - Valuation Services: Providers will ensure accurate, market-aligned valuations for property acquisitions, divestments, and market rental valuations, providing governance and transparency for all leasing negotiations for the applicable market segment.
- Work Lot 7 - Survey Services: The panel will include certified surveyors capable of delivering precise land and property measurements and plans supporting leasing agreements and development projects.
A panel is to be established for each Work Lot, which will comprise pre-qualified service providers to deliver essential property-related functions for the City. This approach is intended to facilitate efficient engagement with expert service providers when required, ensuring that property management, leasing, and surveying activities are carried out to a high standard and in the required timeframes.
Tenderers may submit for inclusion in one, multiple or all Work Lots.
Tenderers must submit tenders in the manner required by the RFT.
The City is committed to creating opportunities for Aboriginal and Torres Strait Islander owned businesses. The City encourages First Nations People owned and operated businesses, Local SME, Start-ups as well as social enterprises (including Cooperatives) to work with us and respond to this opportunity.