Attached is our review of last year’s federally leased property sales activity. Highlights from this report include:
• Consolidation of leases, multi-agency occupancy, and relocation of leases to GSA-owned buildings continues to take place;
• From YE 2012 to YE 2015, GSA has trimmed its lease inventory by 6%, but total square footage is only 3% lower, with firm lease terms having shortened by 11% during that time;
• GSA lease solicitation opportunities have ticked up, but solicitations for new lease-construct projects continue to be well below historical averages;
• As a result, cap rates on longer-lease term assets continue to trend slightly downward, along with cap rates on medium- and shorter-lease term assets as investors seek yield further down the lease term spectrum.
To read the full report, click here.