1. OA’s – Cancelable & Non-Cancelable Client Solutions Division 77 Forsyth Street, SW Suite 110 Atlanta, GA 30303 404.331.3584 www.gsa.gov

2. What is a Cancellable/Non-cancelable Designation? Designation attributed to all Occupancy Agreements, in both owned and leased space Outlines the financial obligations of a tenant agency when they vacate GSA- controlled space 2 GSA Public Buildings Service

3. 3 Non-Cancelable Space Characteristics –Remote or not easily accessible location –Lease Construction –Special purpose –Unusual term –Lack of any realistic federal need for space, other than requesting tenant agency –Any other factors that would significantly impair PBS ability to backfill the space

4. 4 GSA Public Buildings Service Non-Cancelable Space PBS reduces the fee to 5% for leased assignments designated as non-cancelable The decision must be made at the beginning of a leasing action The OA must indicate that the space is non- cancelable in the 1 st draft of the OA and at the beginning of the OA term. If significant changes occur in the project before the beginning of the OA term, PBS may revisit designation.

5. When is the Decision Made? Designation made upon receipt of tenant agency requirements Once designation has been made by PBS, it is generally not changed during the OA term, unless there is a material change in the nature or size of the initial space request that would have changed the original designation. 5 GSA Public Buildings Service

6. 6 Tenant Agency Rights & Options Prior to Contract Execution –Tenant Agency withdraws prior to PBS obligating the government to a contract –PBS will make no claim against tenant agency

7. 7 GSA Public Buildings Service Tenant Agency Rights & Options After Contract Execution, Prior to Rent Start –Cancelable OA’s only, the Tenant Agency is liable for: 16 month rental Obligation, plus unamortized balance of TI or If lease, the buyout costs If Federal space, the total project costs incurred

8. OA Terms For new occupancies (new space assignments to PBS inventory) as of October 1, 2011 the tenant agency may relinquish space upon four (4) months' notice at any point after the first twelve (12) months of occupancy. –After the first twelve (12) months of occupancy, the tenant agency's financial obligation can be reduced to four (4) months of Rent, plus the unamortized balance of any tenant improvements financed through PBS, plus any rent concession not yet earned. 8 GSA Public Buildings Service