Opportunities for Cost Savings in GSA Leasing Program To Be Focus of Hearing
Economic Development, Public Buildings, and Emergency Management Subcommittee Chairman Lou Barletta (R-PA) will lead a hearing next week on the General Services Administration’s (GSA) leasing program and opportunities for taxpayer savings in today’s real estate market.
As highlighted by the Subcommittee’s July 15th roundtable on this topic, there is a unique opportunity in the near future to produce real savings in GSA leasing by taking advantage of the current market conditions, improving federal space utilization, and negotiating good lease deals through longer lease terms. Over the next five years, leases representing 98 million square feet of space in GSA’s inventory will be expiring – 50% of GSA’s total leased portfolio.
Integral to achieving these potential savings are GSA’s tenant departments and agencies. Much of the preliminary work for preparing for expiring leases, including the development of the program of requirements and assessments of space needs, occurs at the tenant agency level. Furthermore, this process, particularly for larger prospectus-level leases, must begin no later than two years prior to lease expiration to ensure the process can be completed in time to run a full and open competition.
Next week’s hearing will build upon the earlier roundtable by examining GSA’s leasing program, leasing programs of GSA’s key tenant federal agencies, and the challenges and opportunities that exist to taking advantage of the current real estate market and reducing costs to the taxpayer.
The hearing, entitled “GSA Tenant Agencies: Challenges and Opportunities in Reducing Costs of Leased Space” is scheduled to begin at 10:00 a.m. on Wednesday, July 30, 2014 in 2167 Rayburn House Office Building.
More information about the hearing, including testimony, additional background information, and link to live webcast, will be posted here as it becomes available.
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