We are often asked to talk about the GSA-leased inventory and we enjoy doing it. In particular, investors and lenders challenge us to help them understand the true breadth of the GSA-leased property portfolio. How big is it really? How many properties are leased solely by the government? And, what is the aggregate value of those properties?
Our philosophy is that it’s always easier to describe it when you can see it. Several weeks ago we prepared a “bubble graph” to illustrate that many of the largest GSA leases are located in the Washington, DC area. This same graph also demonstrated that leases with long (10+ year) terms comprise a relatively small portion of the overall lease portfolio. Further, they are becoming increasingly rare.
Today, we introduce our next effort, an interactive dashboard that allows you, the investor, to tinker with the variables on your own. Want to buy only properties that are >70% GSA-leased with >10 years remaining lease term? We’ll show you how many buildings meet that criteria. Want to buy properties between 30,000 and 100,000 SF? You can see that too.
The data we’ve used comes from our internal database and from GSA. In some instances—particularly building size and, thus, % government-leased—we’ve had to apply data that we can’t guarantee is entirely accurate. Occasionally you may find a mistake and we hope you’ll report it to us because our never-ending quest is for perfection.
Also, the properties shown aren’t strictly office buildings. We eliminated all of the leases smaller than 3,000 SF that largely consist of on-airport TSA leases, parking-related leases and so forth. However, there remain some unique properties in the GSA portfolio that we made no effort to remove. Chief among these are the government’s underground storage facilities, primarily located outside of Kansas City. These facilities (only partially leased by GSA) total several million square feet. There are lots of other unusual properties in the GSA portfolio, though many are attractive investments.
The dashboard we’ve developed is meant to be a lightweight utility but if you want to drill deeper give us a call and we’ll show you the database behind it. In the meantime, click here to experiment on your own. If you’re ready to buy then drop us a line and we’ll show you exactly which properties are a perfect fit for your investment profile.