Title
Recommendation to Authorize the Interim City Manager to Negotiate and Execute an Exclusive Listing and Sale Agreement with Jones Lang Lasalle for Commercial Brokerage Services for a Term of Three Years. (Base Reuse and Economic Development 29061822, 29161822)
Body
To: Honorable Mayor and Members of the City Council
From: Adam W. Politzer, Interim City Manager
EXECUTIVE SUMMARY
The City of Alameda (City) has long used an outside listing team to provide commercial brokerage services to represent commercial properties owned or managed by the City at Alameda Point and other select non-municipal use properties around the island. The current exclusive listing agreement managed by staff in the Base Reuse and Economic Development Department (BRED) was executed in 2015 and expired at the end of December 2025.
In light of the expiration of the agreement and also the significant real estate market changes over the past decade, BRED staff undertook a competitive, public request for proposal (RFP) process to solicit proposals and negotiate a new exclusive listing agreement. A total of eight (8) timely proposals from interested brokerage firms were received. The proposals were carefully reviewed and scored based upon the criteria included in the published RFP, interviews were conducted with the highest ranking firms and follow-up due diligence with the finalists was performed.
Following this competitive selection process, staff are recommending a new exclusive listing agreement with Jones Lang Lasalle for a term of three (3) years.
BACKGROUND
The City’s real property asset portfolio includes over 4 million square feet of occupied and vacant commercial space, three piers and over seven hundred acres of land at Alameda Point alone. A unique mix of commercial properties that were previously used by the Navy, including hangars, warehouses, piers, former administrative buildings, residential units, former vacant residential quarters, and vacant lots can be found at Alameda Point. Many of these properties are identified as historic and to be preserved for adaptive reuse. There are also portions of the land in development (or being held for future development), and properties still in Navy ownership until environmental remediation is completed. Other City-owned properties requiring commercial brokerage services outside of Alameda Point including various marinas, the Grandview Pavilion on Bay Farm Island, the Carnegie Library, and Alameda Theater complex.
The City’s commercial brokers play an important role in attracting prospective tenants and buyers to consider City properties, advising the City on market dynamics, negotiating fair market value leases, sales prices, and terms based on their deep current knowledge of the market, and supporting staff with lease documents and City Council staff reports, as appropriate. Because the City’s portfolio is diverse, the City requires a broker who can attract a range of users, including technology and research and development, industrial and warehouse users, smaller scale retail users, office tenants, and real estate developers and investors. Cushman & Wakefield has held an Exclusive Listing Agreement with the City for this professional representation since 2015.
The City released the RFP seeking commercial brokerage representation and posted the full package on the website on September 19, 2025. In an effort to solicit the maximum number of qualified responses and most competitive commission fee structure, the RFP was widely advertised. Notices inviting proposals were placed on the City’s web page and published by the Bay Area News Group and links to the web page were shared on social media outlets and circulated through relevant professional networks.
The RFP included background information about Alameda and its diverse commercial asset portfolio, the City’s expectations for the broker’s scope of work, and how proposals would be assessed by the City. The RFP included detailed requirements for inclusion in proposals packages, including data on the broker’s current market performance, team composition and hierarchy, template reports, sample marketing materials, agreement language, commission expectations and fee schedule.
The required commercial broker scope of work included following high-level requirements for marketing and representation of the commercial asset portfolio in alignment with the City’s strategic priorities, the provision of pertinent market research, analysis and data, representation in real property negotiations and transaction management, timely and appropriate communication and reporting.
A required pre-proposal meeting and site tour was hosted by BRED staff on October 8, 2025, at City Hall West and over 33 individuals attended from the local and regional commercial brokerage and land development sectors.
DISCUSSION
As a result of the successful meeting and tour, Base Reuse staff received eight (8) responsive written proposals. The proposal packages were opened on November 4, 2025. Below is a list of the responsive broker teams:
• Keller Williams Realty Oakland
• Jones Lang LaSalle Brokerage, Inc.
• CBRE, Inc.
• Cushman & Wakefield of California, Inc.
• Transwestern Property Company West, Inc.
• Cornish & Carey Commercial, a California corporation dba Nemark
• Land Advisors & TRI Commercial Real Estate Services, Inc.
• Kidder Mathews of California, Inc.
In alignment with the published RFP selection process and the City’s procurement policy, BRED staff reviewed and ranked the written proposals and the top ranked broker teams were selected to participate in panel interviews held in mid-November.
Based on the overall evaluation of written materials, first and second round interviews, and reference checks, Jones Lang Lasalle (JLL) submitted the most competitive proposal on several fronts. JLL demonstrated their local and regional experience with comparable commercial real estate portfolios, with diverse property types, a deep understanding of the scope of work and grasp of the dynamic market conditions. JLL clearly and concisely demonstrated their creative marketing skills and provided the City with a flexible and competitive commission rate reflective of current regional market conditions.
A broker listing agreement is different from the City’s standard service provider agreement and selection is not solely based on the lowest bid price for a specific service or project. Broker compensation is based on performance, the lease or sale price of the number of real estate transactions that the broker is able to successfully close on behalf of the City. Thus, the agreement does not include a not to exceed value and recommendation for the selection of a broker is not based on a low bid. The commission schedule negotiated with JLL is included in the agreement in Exhibit IV, Agent Compensation and is reflective of current market demands. Commission schedules were provided by all eight proposers during the RFP process and BRED staff reviewed and compared this information. Lastly, BRED’s annual budget includes an estimation of anticipated commission payments and some additional funding to allocate towards marketing efforts during the fiscal year.
Staff recommends the award of a three (3) year Exclusive Listing and Sale Agreement with JLL, as the best qualified proposer.
ALTERNATIVES
• Authorize staff to enter into a three (3) year exclusive listing agreement with JLL to provide commercial real estate broker representation of the City commercial real estate portfolio.
• Direct staff to negotiate different terms with JLL or another firm. Changes will be dependent on JLL’s or another firm’s willingness to accept new terms. Staff seeks specific direction from City Council for this alternative.
FINANCIAL IMPACT
Commercial brokerage services are necessary to continue to generate lease and sales revenue from City-owned properties. Leases currently generate a net revenue to the City of approximately $14 million annually, largely to the Alameda Point (290), Alameda Point Tidelands (291) and Tidelands (216) funds with smaller amounts to the General Fund and other funds. The Base Reuse and Economic Development Department Budget allocates approximately $500,000 annually for commissions, and additional commission amounts will be included in future City Council items if commissions earned in a given year exceed this allocated amount. As commissions are a percentage of total lease revenue, additional commissions would only be paid out in an instance where the City is projecting additional future lease revenue beyond what is budgeted.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action does not affect the Alameda Municipal Code. This action supports the City Strategic Plan Priority to Invest in Transportation, Infrastructure, Economic Opportunities and Historic Resources, including TIEH25 to Implement the City’s Alameda Point Disposition Strategy - renting and leasing City properties. This action is subject to the Levine Act.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA analysis is required.
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Authorize the Interim City Manager to negotiate and execute an Exclusive Listing and Sale Agreement with Jones Lang Lasalle for Commercial Brokerage Services for a term of three years substantially in the form of the Agreement attached as Exhibit 1.
Respectfully submitted,
Abigail Thorne-Lyman, Director of Base Reuse and Economic Development
By,
Alesia Strauch, Base Reuse Manager
Financial Impact section reviewed,
Ross McCarthy, Finance Director
Exhibit:
1. Exclusive Listing and Sale Agreement