With over 1,000 leased facilities, often in single-tenant buildings, the Social Security Administration (SSA) is a staple of many federal investor portfolios. Like other federal agencies, however, SSA has been dutifully implementing the “Reduce the Footprint”…
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What to Watch for in Trump’s Infrastructure Plan
Last week, the Trump administration revealed its proposed 2019 budget and a companion proposal, the Legislative Outline for Rebuilding Infrastructure in America. Together, these proposals describe the president’s much-anticipated infrastructure plan. The centerpiece of the plan is…
Beware the “Retirement Tsunami”
Immediately following Donald Trump’s oath of office, his campaign proposal Contract with the American Voter became an action plan. The second item listed is the President’s declaration that he would pursue “a hiring freeze on all…
The “Holdover” Problem
If you are the owner of a GSA-leased property, you’ve probably recognized by now that there is no holdover clause in your lease. This doesn’t mean the government cannot hold over; it only means that it…
Is Government Growth Inevitable? Insights from a 19th Century Economist
The late-19th century German economist, Adolph Wagner, observed that as progressive industrialized economies grow the public sector expands as a percentage of the overall economy. Wagner’s observation, which later became known as Wagner’s Law, or “The Law…
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…
Social Security’s Shrinking Footprint
The Social Security Administration is shrinking—though, as more and more baby boomers arrive at the age of SSA entitlements, the demands on it are growing. A report issued late in August by the Government Accountability Office…
VA and the Problem of Old Properties
A century and a half ago, after the Civil War had ended, the federal government began an ambitious program of building national hospitals for wounded veterans—a few at first, and then, as those veterans became elderly,…
Colliers Releases Its Q2 2017 Top Office Metros Snapshot
This past week, Colliers published its “Top Office Metros Snapshot” focused on ten of the nation’s most notable office markets. All of these are among the top 20 metros occupied by GSA so we take an…
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…