The U.S. government has a large presence in the commercial real estate world, paying about $5.7 billion in rent annually and being the largest occupant of domestic buildings in the U.S. Now, in an effort to become more strategic and savvy with their real estate decisions, the U.S. General Services Administration is turning to real estate brokers to work on their deals. Their goal is to reduce their real estate footprint, saving $4 billion by 2023 through “lease-cost avoidance” and by working with brokers.
The plan is to work with outside commercial real estate professionals to great the best deals including lease renewals at better terms, finding new locations, having purchase options added to leases, and negotiating longer terms on agreements. Real estate is important not only at the local level but at a federal level as well.
This movement will provide new opportunities and potential profits for landlords.
The government’s shift to working with brokers to secure better deals highlights what many investors and business owners already recognize. Commercial real estate professionals who understand the market can help you negotiate better terms, find ideal locations, and ultimately save you time and money.
As the government is tasked to save over $4 billion by 2023 through “lease-cost avoidance,” which means not extending leases at premium rents or keeping more square footage than necessary, opportunities are available for landlords across the country to secure new government contracts.
While the local impact in southeastern North Carolina is unknown at this time, the movement serves as a reminder for business owners to closely examine their needs when leasing office space. Working with a real estate company who can help you examine your requirements and has the resources to guide you, will help you find the best place for your business and save you a lot of time and money.
Original Story Source: CoStar Group – US Government Reaches Out to Brokers for Help Getting the ‘Best Deals’