As the General Services Administration looks to execute the federal government’s real estate strategy, from major headquarters deals like the FBI to 10K SF lease renewals, the D.C. Metro area is the region impacted most substantially by the agency’s decisions.
The GSA represents 14% of all office tenants in the D.C. region and 17% in the District itself, according to CBRE’s Marcy Owens Test. Because the agency has for years relied on short-term lease renewals, an unusually high number of those leases are expiring over the next few years.
In 2018 alone, 6.6M SF of GSA leases are expiring in the D.C. region, 57% above the 10-year average. Over the next five years combined, 27.78M SF of GSA leases will expire, setting up a myriad of competitions among landlords for large and small deals.
Among the biggest of those deals is the Securities and Exchange Commission. Brokers and landlords have been waiting for three months since Congress approved the SEC prospectus for the GSA to release more information on the competition.
GSA Public Buildings Service National Capital Region Commissioner Darren Blue announced Wednesday at Bisnow’s GSA and Federal Properties Summit, held at Normandy’s 950 L’Enfant Plaza, that the official request for lease proposals was released Tuesday. The request for least proposals gives landlords and brokers the information they need to compete for the 1.3M SF headquarters.
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