Prior to this change, agencies could opt to use the leasedelegation policy for any amount of space, a GSA spokeswoman tellsGlobeSt.com. The change to the delegation program will becomeeffective upon publication in the Federal Register. It is unclearwhen publication of the new regulation will happen, she adds.

The policy change will only affect a small percentage ofgovernment leases, the spokeswoman continues--at most 20%. "Mostgovernment agencies use GSA for their leasing needs anyway," shesays, noting the government's contracts with fourbrokers--Staubach, Studley, Trammel Crow and Jones Lang LaSalle."For the over 7,000 total leases under GSA's purview, we only hadabout 156 delegations from agencies." GSA leases approximately 176million rentable sf of space in 7,106 facilities nationwide.

The change in regulation was initiated after reports from theGeneral Accountability Office and GSA's Inspector General's officefound that there were weaknesses in the current program. "Leasingis one of GSA's core business functions," says David Winstead,Commissioner of GSA's Public Buildings Service. "We have theexpertise and the tools to get the best deals for agencies wholease space from GSA."

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Erika Morphy

Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.