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WASHINGTON, DC-A new regulation is set to go into effect that will significantly limit the US General Services Administration’s lease delegated policy. Essentially, once the new policy kicks in, government agencies will be required to use the US General Services Administration’s leasing services to negotiate for any commercial space in the private sector that is more than 20,000 sf.

Prior to this change, agencies could opt to use the lease delegation policy for any amount of space, a GSA spokeswoman tells GlobeSt.com. The change to the delegation program will become effective upon publication in the Federal Register. It is unclear when publication of the new regulation will happen, she adds.

The policy change will only affect a small percentage of government leases, the spokeswoman continues–at most 20%. “Most government agencies use GSA for their leasing needs anyway,” she says, noting the government’s contracts with four brokers–Staubach, Studley, Trammel Crow and Jones Lang LaSalle. “For the over 7,000 total leases under GSA’s purview, we only had about 156 delegations from agencies.” GSA leases approximately 176 million rentable sf of space in 7,106 facilities nationwide.

The change in regulation was initiated after reports from the General Accountability Office and GSA’s Inspector General’s office found that there were weaknesses in the current program. “Leasing is one of GSA’s core business functions,” says David Winstead, Commissioner of GSA’s Public Buildings Service. “We have the expertise and the tools to get the best deals for agencies who lease space from GSA.”

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