WASHINGTON, DC—The federal government has been aggressivelyscaling back its real estate footprint for several years. Now,though, it is moving into a new phase of space reduction that istaking some incumbent landlords aback.
Namely, the government is moving forward with plans to reducespace on a per employee basis, JLL's Joe Brennantells GlobeSt.com. This has been a stated goal for a while but itis starting to manifest now. "The Hill is on board with this, OMBis driving it and now we are starting to see agencies actuallyimplement it," Brennan says.
"The amount varies from agency to agency but it is roughly 20%to 25% less space per employee," he says. The reduced space istranslating into renewals for significantly less space, across thecountry and, of course, in Washington, DC.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
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.
