WASHINGTON, DC—A top official with the General Services Administration pledged before a House subcommittee on Tuesday that the agency will work to reduce its backlog of expired leases.
GSA Public Buildings Commissioner Norman Dong, during testimony at a roundtable held by the Transportation and Infrastructure Committee's Subcommittee on Economic Development, Public Buildings and Emergency Management, admitted the lease backlog has created a considerable amount of uncertainly for area landlords. He noted that many building owners struggle to secure financing for their properties with the government's status as a long-term tenant unresolved, according to the Washington Business Journal.
Subcommittee Chairman Rep. Lou Barletta believes that with office vacancy rates high and interest rates low, the federal government could take advantage of reduced rental rates. Approximately 50% of the 98 million square feet of space the GSA leases across the country are set to expire in the next five years.
"It can't be business as usual. There needs to be a sense of urgency here to really leverage this opportunity and not let the window pass us by," the GSA's Dong said. See story in the Washington Business Journal.
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