Government Real Estate Leasing Overview – Part 3

Aug 16, 2018


By Jamie Scruggs, Government Lease Advisors

Most property owners will naturally expect the difficult part of government real estate leasing process ends with the award of the government lease, but challenges do remain for the property owner during the management of the lease, which can include issues specific to government tenants such as:

1. Correctly tracking and billing operating costs with lease language that is not standard to private-sector leases.

2. Billing for real estate tax expenses.

3. Dealing with government tenant complaints that can be unique for property owners who may only do net leases where the private-sector tenant is responsible for the day-to-day maintenance of the leased space.

4. The approval process for even minor repairs or renovations can often require multiple levels of GLC approvals and bids when required.

5. Government tenants may have very specialized requirements in the leased space that may be difficult to manage for even the most experienced property manager.

The management of government-leased properties is slightly easier for those companies that specialize in working on government real estate lease transactions and managing the properties once the government lease is in place. Most large real estate companies now have departments or staff dedicated specifically to government real estate leasing and property management. In the last 15 years, the trend for the largest real estate firms has been to pursue contracts with government real estate agencies to represent them on their real estate lease transactions as their real estate broker. These large real estate companies with government real estate representation agreements in turn will often hire smaller real estate firms to assist in the real estate lease transaction. This is because these small firms can either satisfy the governments real estate brokerage contract requirements for small business set-asides or can assist in the government real estate lease transaction due to their specialized knowledge on a given government tenant or specific geographic region.

Jamie Scruggs is a nationally recognized expert on GSA leases and works with property owners and brokers on government real estate leases and property sales throughout the US. Jamie has been involved in thousands of government real estate leases and can assist you with your government real estate lease needs. Jamie is the author of The Complete Guide to Government Real Estate Leasing: Volumes I & II.

Jamie can be reached at 202-587-5654,