WASHINGTON, DC—No, it is not your imagination. The General Services Administration has been taking less and less space in new buildings including build-to-suit projects in recent years, according to a post by Kurt Stout in Colliers' Government Services practice. The good news is that it thinks the GSA will start to step up its activity. It is almost structurally impossible for it not to.

Here is Colliers' thinking: The GSA has been putting off signing long-term leases for so long that a huge backlog has formed; one-fourth of the inventory expires in the next two year. This has been the situation for some time, of course. The inventory of GSA-leased space has been declining since 2007, and especially in the past two to three years. At the same time, a surge in short-term leasing began in the late 2000s and has persisted to the present.

Colliers, though, has identified a new factor that could bring about some movement—namely, mandates from both the President and Congress to improve sustainability. These mandates will require occupancy in newer, energy efficient buildings.

One notable and recent example is the passage of the so-called "Tenant Star" bill in the House of Representatives last month. It follows passage of a similar measure in the Senate. Now the bills are headed to President Obama's desk for signature. The bill authorizes the US Environmental Protection Agency and the Department of Energy to create a voluntary "Tenant Star" program modeled after the ENERGY STAR program.

Another example is Fannie Mae's Multifamily Green Building Certification Pricing Break program, which it announced earlier this year, and under which it recently closed its first transaction. The program, which recognizes eight certifications, provides a 10 basis point interest rate reduction on loans for multifamily refinance, acquisition or supplemental mortgage loan.

Will these and other programs lead to more office construction in DC and elsewhere for federal tenants? Colliers seems a bit dubious about that, but it does believe this combo of events should ultimately increase occupancy in newer product.