Leasing Space to the Government

The U.S. General Services Administration (GSA), the nation's largest public real estate organization, provides workspace for more than 1.1 million federal workers through GSA’s Public Buildings Service. Approximately half of the employees are in buildings owned by the federal government and half are located in over 6,400 leased buildings across the country.

GSA leases space in both cities and small towns when leasing is the only practical answer to meeting federal space needs. More than 50 percent of GSA leases are for 10,000 square feet or less, so building owners do not have to be a corporate giant to compete for lease contracts.

The following briefly explains how private property owners and managers can compete for lease contracts. It outlines the types of space GSA ordinarily leases, the lease terms and conditions, how to offer space to GSA, how GSA awards leases, and whom to contact for additional information.

Scope of GSA Leasing

GSA leases all types of space for most federal agencies, including offices, laboratories, warehouses, clinics, and border stations in urban, suburban, and rural areas throughout the United States and its territories.

Lease Conditions

To satisfy various federal government needs, GSA leases space in a wide range of sizes, locations, and terms; thus, each Solicitation for Offers for a new lease differs in its requirements.

The size of a lease opportunity may range from a single room to an entire building. Initial alterations to prepare space for occupancy differ according to the needs of the tenant agency. In some cases, new construction is solicited. Terms for GSA leases are usually 5 to 10 years, although some leases are for shorter duration, or for as long as 20 years. The term is based on customer agency requirements and market conditions for the present and foreseeable future.

Offering Space to GSA

All requirements for space over 10,000 square feet are advertised in local newspapers or the Federal Business Opportunities web page at www.fedbizopps.gov. Space requirements under 10,000 square feet are usually handled by a more informal canvassing of the market and contacts with potential offerors. Property managers or owners interested in offering space to GSA for lease are encouraged to contact the appropriate regional office.

Submitting a Proposal

Each Solicitation for Offers to lease space indicates the type and amount of space needed and the conditions of the lease. The solicitation also gives detailed information on how to submit a proposal, contact name and address, and the deadline by which it must be received by the GSA regional office.

Lease Awards and Payments

GSA solicits offers on a competitive basis, negotiates with offerors, and for most acquisitions, makes awards to the lowest priced acceptable offer. Some solicitations also consider trade-offs between price and other factors. Typically, for acquisitions greater than 10,000 square feet, the award is based on a building rate and a specific allowance for the build out of the tenant space. Once the award is made, the final cost of the build out is negotiated, based on the design drawings of the tenant’s space. After acceptance of the space, GSA begins monthly rent payments in arrears.