Sales Market Insights

Spring 2013 GSAX Market Report CoverOur GSAXCHANGE team, the investment sales and finance arm of Colliers Government Solutions, just published their inaugural “Government Market Insight” report, which includes an overview of sales activity and trends in the federal sector. Among their findings:

1.  The trend of 10-year U.S. Treasuries versus GSA-leased property cap rates demonstrates that the spread widened significantly in 2009 and has remained so, though both Treasury yields and cap rates are declining in tandem.

2.  The per-square-foot pricing of GSA-leased property sales is typically higher than the average for office sales in the U.S. As the report notes, some of this is statistical bias due to the fact that many GSA-leased properties reside in the pricey Washington, DC area. However, we think the observation has merit generally due to the fact that GSA leases often include some specialty build-out or security that, amortized into the lease, generates higher NOI.

To read the report, click here.

To read our Fall 2013 update to this report, click here.