Mississippi Administrative Code
Title 12 - Finance and Administration
Part 8 - Real Property Management Leasing Manual
Sec2 12-8-300 - SOURCE SELECTION AND CONTRACT FORMATION
Section 12-8-300.12 - LEASE CONTRACTS

Universal Citation: MS Code of Rules 12-8-300.12

Current through September 24, 2024

The use of applicable RPM Division template Lease Contract documents is required unless it is determined that such documents are either not practicable or not advantageous to the State for the specific lease request in the opinion of the RPM Division Director. Any deviations and/or supplementary conditions to template forms and/or template contract shall be clearly identified in the applicable sections of the template documents. Lease Contracts shall generally be on the basis of Rental Rate times Space at a specified Location over a specified Term.

(1) Rental Rate - Rate may be flat and fixed throughout the lease term or may be graduated. Utilities, custodial, security and tenant improvements may be included, but if so, must be incorporated into the rate over the lease term.

(2) Space - The methodology for measurement of space in buildings, the Rentable Area, shall be measured in accordance with the BOMA standard, latest edition. The Occupant Area component of the Rentable Area shall be computed by measuring to the inside finish of permanent exterior building walls to the interior face of public corridors and/or other permanent non-tenant partitions, and to the center of demising walls. Excluded from such calculation shall be any / all Building Service Areas and any / all Major Vertical Penetrations. In multi-tenant buildings only, the pro-rated portion of Building Amenity Areas may be included in the Rentable Area.

(3) Location - The city, county or municipality at which the real property is to be leased shall be clearly identified by street address or other definitive description.

(4) Term - Real estate markets can be highly volatile and dramatic shifts in prevailing rates can occur over relatively short periods of time. Longer leases can provide predictability, and can hedge against future increases when market conditions rise, but can also expose agencies and departments to higher than prevailing rates when market conditions fall. Shorter leases can provide flexibility, but can also be higher due to uncertainty to potential Lessors. The desired initial and renewal terms, if any, should be carefully analyzed and considered to optimize these factors. Maximum terms shall be as follows:

a. Initial Term - Initial term of leases may be entered into for a period of time not to exceed twenty (20) years, unless otherwise indicated in 300.9 Non-Competitive Proposals.

b. Renewal Terms - Not required, but if included, shall not exceed two (2) renewal terms of not more than five (5) years each, unless otherwise indicated in 300.9 Non-Competitive Proposals. Where Rental Rate for renewal terms was not identified in the initial RLP, renewal Rental Rate shall be assumed to be the rate effective at the end of the initial term.

(5) Normal Working Days - Unless otherwise noted in a specific Lease, shall mean Mondays thru Fridays exclusive of State and Federal Holidays.

(6) Normal Working Hours - Unless otherwise noted in a specific Lease, shall mean 8:00 a.m. to 6:00 p.m. each Working Day.

Disclaimer: These regulations may not be the most recent version. Mississippi may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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