Rental Space Occupied by EEOC in Los Angeles

An inquiry was conducted of the leasing of office space in Los Angeles, California, occupied by the Equal Employment Opportunity Commission (EEOC). The apparent high cost of the EEOC space does not serve the government's best interest.

The General Services Administration (GSA) charged EEOC $9.79 a square foot under a law which authorizes the GSA Administrator to charge agencies an amount that approximates commercial charges for comparable space and services. In January 1979, GSA reappraised the value of office space and will increase the rent 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 EEOC time to budget for the rate increase, GSA will not apply the new rate until October 1980. Although it appears that GSA obtained office space at a reasonable rate, there can be some lessening of the benefits to the government in the follow-on lease. Unless GSA develops an alternative space plan to enhance its position for negotiating a succeeding lease, the lessor will have an advantageous negotiating position because the government will not have made the necessary arrangements to move if the rate is not reasonable. Accordingly, this has been brought to the attention of the Administrator, GSA, so that he can take appropriate action.