GSA’s aging inventory is not a new topic on this blog; a 2017 analysis revealed frequent lease extensions and a persistent decline in new construction as primary drivers. As the pandemic persists, with associated economic jitters…
Category: Leases
Long-Term Leased GSA Properties Are Back (for now)!
Despite a recent sharp decline in overall lease inventory, the number of long-term GSA-leased assets has come roaring back, nearly exceeding the peak of 222 achieved at the start of 2013. We examined the early stages…
GSA’s Lease Inventory Is Now Declining Even Faster
Pandemic-related occupancy concerns continue to rattle some federal-leased property owners. These jitters have been exacerbated in recent months as reports confirm that the size of GSA’s leased space inventory has declined sharply, accelerating the previous…
Long-Term Leased Assets Now More Plentiful, Yet Older
From its peak in 2013, the number of long-term GSA-leased properties declined steadily for four years before stabilizing. But only in the past year has that portion of the property inventory started to recover. This trend…
The Specter of Deflation and What it Means for GSA Lessors
One well-known quirk of GSA leases is that operating cost reimbursements are not based on increases in actual costs. Rather, they are calculated on the increase in the Consumer Price Index for Urban Wage Earners and…
GSA Lease Terms are Poised for Growth
Recently, pre-solicitation notices posted to the Federal Business Opportunities website (FBO) have been indicating GSA’s desire to enter into longer lease contracts. FBO notices advertise GSA’s requirements for upcoming procurements, including the length of lease term…
GSA Lease Terminations: How Often Do They Occur?
Investors and lenders frequently ask how often GSA exercises its termination rights. It’s a necessary question because roughly 75% of GSA leases contain some form of cancelation clause–typically a rolling right to terminate. The trepidation caused…
A Look at GSA Rent Growth
Portfolio investors of GSA-leased properties will be pleased to learn that GSA gross rents have, on the whole, performed reasonably well in the past ten years. GSA leases typically do not contain rent escalations–in fact, in…
The Greying of GSA’s Leased Inventory
As illustrated in the graph above, the average age of buildings leased by GSA has hovered at or around 15 years through the 2000s. Yet, recently that figure has been trending older. The GSA leased inventory is aging.…
GSA Lease and Sales Market Trends
It is well-documented that since Freeze The Footprint began in 2012, the GSA and its tenant agencies have been actively pursuing consolidation and downsizing in order to meet these requirements. The question is – how has…