We originally discussed the history and implementation of the Automated Advanced Acquisition Program (AAAP) last year here on this blog. Originally created for the purpose of consolidating and streamlining the leasing process for a large volume of small leases, AAAP has evolved into a platform for awarding general office space requirements ranging from 5,000 SF up to the prospectus threshold.
One of the biggest advantages of the AAAP program, is the reduction in lease cycle time. The normal leasing procurement process can be quite lengthy but the AAAP accelerates it by having lessors submit space data and proposal terms into a system and have those offers remain active until accepted by GSA. The entire process including lease award may occur in a matter of months versus possibly a year or more for a traditional procurement. Another advantage to lessors is that no brokerage fee is due to GSA’s broker representative under this program.
GSA has utilized an Advanced Acquisition Program for GSA leases in the National Capital Region since the early 1990s, yet the process was moved online (“automated”) in 2005. The program was expanded last year to include Atlanta and as of this past Friday it was further expanded to include New York and Chicago. GSA’s goal is to roll out the platform to every major metropolitan market in the country. The timing and geographic reach will ultimately depend on the success of these three newly introduced pilot programs, however.
We should note that the success of the program relies on wide adoption. That works fine in the National Capital Region, which is home to a high concentration of federal leasing activity in a relatively compact geography. In other markets, it isn’t so obvious if GSA will enjoy the same level of “competition” (i.e. number of options).
In any case, we see the opportunity for some owners to dramatically improve their odds of leasing to the the federal government. We have submitted hundreds of AAAP submissions over the years and there is both art and science to the process. We invite any property owner with holdings in the core of major metropolitan areas to contact a member of our team. You could have a shot at bringing a federal tenant into your building.