Beverly Hills : FedEx Gets Rent Decrease

Faced with an uncertain economy, the City Council last week agreed to reduce Federal Express’ rent by about $1,000 per month and renew the company’s lease for retail space in the city’s Bedford Drive parking structure.

Under a 10-year agreement that expired at the end of May, Federal Express paid $4,628 per month for a 1,600-square-foot commercial space in the city-owned garage. However, the company requested that its monthly rate be reduced to $3,606.75 per month, City Manager Mark Scott told the council in a report.

The city will receive $43,281 in rent over the next year, about $12,000 less than what it would receive under the expired lease, Scott said.

“However, based upon the tenant’s request, a rent survey of the area and the general economic climate, the leasing committee and staff agreed to recommend a rent reduction for Federal Express,” Scott said.

The city has 29 retail leases scattered throughout six parking structures. The leases bring in about $4 million annually, with funds deposited to the Parking Enterprise Fund, city spokesman Fred Cunningham said.

Money from the fund is used to maintain parking meters and the garages, pay parking employees, and repay the debt the city incurred to build the garages.