AGENDA REPORT
Meeting Date: March 4, 2026
Item Number:
To: Honorable Mayor & City Council
From: Logan Phillippo, Real Property Development Manager Jonathan Gernes, Senior Management Analyst
Subject: FIRST AMENDMENT TO BROKER LEASING & COMMISSION AGREEMENT WITH CUSHMAN & WAKEFIELD OF CALIFORNIA, INC.
FOR THE LEASE OF TENANT SPACE AT 331 FOOTHILL ROAD,
SUITE 400
Attachments: 1. First Amendment to Broker Leasing & Commission Agreement
RECOMMENDATION
Staff recommends the City Council approve the First Amendment to Broker Leasing & Commission Agreement by and between the City of Beverly Hills and Cushman & Wakefield of California, Inc. (“Cushman & Wakefield”) for the lease of the tenant space at 331 Foothill Road, Suite 400 (“Brokerage Agreement”).
INTRODUCTION
The City tenant space at 331 Foothill Road, Suite 400 is currently vacant and available for lease. The recommended first amendment to the Brokerage Agreement will extend the marketing and negotiating services with Cushman & Wakefield for the fourth-floor office space through September 30, 2026, with one, six-month extension option. [Continues Next Page]
Meeting Date: March 4, 2026
DISCUSSION
The City has previously engaged Cushman & Wakefield to provide professional brokerage services at this same location for multiple years. The brokerage has successfully identified prospective tenants and assisted the City with negotiating key lease terms. The proposed first amendment extends the term of the brokerage agreement through September 30, 2026, allowing the City Manager the option to further extend the term through March 31, 2027, at their discretion.
Brokers Pete Collins, Scott Menkus and Alexa Delahooke with Cushman & Wakefield have been the primary service providers involved with this location; the brokers have substantial office expertise and are familiar with City requirements. Services continue to include:
• Providing professional consultation regarding market value; • Conducting strategic marketing for restaurant uses;
• Organizing and hosting property walkthroughs/showings; • Providing progress updates and maintaining timely contact with assigned staff; • Assisting in negotiating the terms of a lease;
• Listing the property on all appropriate forums;
• Coordinating with prospective lessees; and
• Providing professional photography.
The Brokerage Agreement includes exclusions for existing tenants in the building. The City is currently in negotiations with an existing tenant, United Talent Agency, on a lease renewal. Because Cushman & Wakefield also represents United Talent Agency, the City has engaged a separate brokerage to assist in that renewal negotiation.
FISCAL IMPACT
There is no fiscal impact or request for funding at this time.
The Brokerage Agreement with Cushman & Wakefield consists of a commission schedule that follows one of two schedules: one schedule for rates payable upon the City requesting services for negotiations with The Agency or United Talent Agency, LLC (“Schedule 1”), and one schedule for leases with tenants not affiliated with either The Agency or United Talent Agency, LLC (“Schedule 2”).
Schedule 1 Commissions
• Without a tenant broker, 1.5% of the base/fixed rent for the first five years of the term, 1% of the base/fixed rent for years six through ten of the term, and 0.5% of base/fixed rent for each year thereafter.
• If the tenant has a broker as well, 5.5% of the base/fixed rent for the first five years of the term, 3% of the base/fixed rent for years six through ten of the term, and
1.5% of base/fixed rent for each year thereafter.
Schedule 2 Commissions
• Without a tenant broker, 4% of the base/fixed rent for the first five years of the term, 2% of the base/fixed rent for years six through ten of the term, and 1.5% of base/fixed rent for each year thereafter.
Meeting Date: March 4, 2026
• If the tenant has a broker as well, 6% of the base/fixed rent for the first five years of the term, 3% of the base/fixed rent for years six through ten of the term, and
1.5% of base/fixed rent for each year thereafter.
The commission under either Schedule 1 or 2 would be paid in five equal installments, with one-fifth upon the execution of the lease and one-fifth on each anniversary of the commencement of the lease term, subject to the prospective tenant not being in default as of the date payment is due. The broker will be required to share the commission payment with the tenant’s broker, if the tenant has a broker.
The total commission is estimated to be between $135,946.21 and $536,440.04 for a tenyear lease; however, this amount will be subject to the base rent negotiated and whether there is a tenant’s broker.
Ryan Gohlich,
Assistant City Manager
Approved By
Attachment 1
-1-
B0785-0001\3218430v2.doc
FIRST AMENDMENT TO
BROKER LEASING & COMMISSION AGREEMENT
This FIRST AMENDMENT TO BROKER LEASING & COMMISSION AGREEMENT (“First Amendment”) is executed as of March 4, 2026 and is entered into by and between THE CITY OF BEVERLY HILLS, a California municipal corporation (“Landlord”) and CUSHMAN & WAKEFIELD OF CALIFORNIA, INC., a California corporation (“Broker”).
RECITALS
A. Landlord and Broker entered into a Broker Leasing & Commission Agreement dated February 6, 2024 with respect to the leasing by Landlord of unleased space at Suite 400 at 331 Foothill Road, Beverly Hills, California (the “Agreement”).
B. The Agreement expired on February 5, 2026, and Broker and Landlord desire to extend retroactively the term of the Agreement, and give the City Manager, or her designee, of the Landlord the authority to further extend the term by up to six (6) months.
NOW, THEREFORE, in consideration of the foregoing recitals and other consideration, the sufficiency of which is hereby acknowledged, Landlord and Broker hereby agree as follows:
1. Term. The Term of the Agreement is hereby extended to September 30, 2026.
2. City Manager Authority to Extend. The City Manager, or her designee, may further extend the term of the Agreement one or more times, not to exceed six (6) months in the aggregate, provided each extension is in writing (and is executed/countersigned by Broker).
3. Effect of First Amendment. Except as expressly amended by this First Amendment, the terms of the Agreement shall remain in effect.
4. Counterparts. This First Amendment may be executed in counterparts, all of which shall be considered one and the same agreement.
5. Entire Agreement. This First Amendment constitutes the entire agreement between Landlord and Broker with respect to the subject matter hereof.
6. Time of Essence. Time is of the essence of every provision of this First Amendment in which time is a factor.
Docusign Envelope ID: CFCD8206-1FB0-4186-A5FE-516C4DC8AE12 -2-
B0785-0001\3218430v2.doc
IN WITNESS WHEREOF, the parties have entered into this First Amendment as of the date first stated above.
LANDLORD:
THE CITY OF BEVERLY HILLS,
a California municipal corporation
By:
Sharona R. Nazarian, PsyD
Mayor
BROKER:
CUSHMAN & WAKEFIELD OF
CALIFORNIA, INC.
By:
Michelle Brazil
Director of Operations
ATTEST:
By:
Huma Ahmed, City Clerk
APPROVED AS TO CONTENT:
By:
Nancy Hunt-Coffey, City Manager
APPROVED AS TO FORM:
By:
Laurence S. Wiener, City Attorney
Docusign Envelope ID: CFCD8206-1FB0-4186-A5FE-516C4DC8AE12 Certificate Of Completion
Envelope Id: CFCD8206-1FB0-4186-A5FE-516C4DC8AE12 Status: Sent Subject: Complete with Docusign: First Amendment to Broker Leasing & Commission Agreement.pdf Source Envelope:
Document Pages: 2 Signatures: 2 Envelope Originator:
Certificate Pages: 3 Initials: 0 Jonathan Gernes
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Time Zone: (UTC-08:00) Pacific Time (US & Canada)
455 N. Rexford Drive
Beverly Hills, CA 90210
[email protected]
IP Address: 198.245.189.166
Record Tracking
Status: Original
2/18/2026 1:22:36 PM
Holder: Jonathan Gernes
[email protected]
Location: DocuSign
Signer Events Signature Timestamp
Michelle Brazil
[email protected]
Director of Operations
Cushman & Wakefield
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Using IP Address: 136.226.67.91
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Signed: 2/23/2026 10:06:57 AM
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Andrew Bragin for
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Using IP Address: 38.99.206.170
Sent: 2/23/2026 10:06:58 AM
Viewed: 2/23/2026 10:34:42 AM
Signed: 2/23/2026 10:35:55 AM
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Logan Phillippo
[email protected]
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Nancy Hunt-Coffey
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Sharona R. Nazarian, PsyD
[email protected]
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Huma Ahmed
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Alexa Delahooke
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Sent: 2/18/2026 2:58:37 PM
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Logan Phillippo
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Sent: 2/18/2026 2:58:35 PM
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Pete Collins
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Sent: 2/18/2026 2:58:36 PM
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Scott Menkus
[email protected]
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Denise Garcia
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Keith Sterling
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Megan Grilley
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