3: Rightsizing Real Property Portfolio

Continue restructuring/rightsizing GSA’s portfolio of real property assets.

Other Information:

Management of Federal government buildings was one of the reasons GSA was created. To be better stewards of these buildings, GSA will perform an annual financial tiering analysis to monitor portfolio performance. This analysis will outline how other business lines are impacted by this restructuring effort, while articulating the opportunities and risks associated with owning and operating an asset-based organization. The analysis will help determine a recommended use for each asset—whether to maintain, upgrade/modernize, share, dispose of, or exchange the property. GSA will monitor the disposal forecast and execution. The analysis will drive business strategies in other Public Buildings Service (PBS) programs, such as new construction versus repairs and alterations. GSA must also use all available sources of capital to address the reinvestment needs of the portfolio. GSA’s recent authority to retain proceeds from the sale or outlease of real property makes additional resources available for the Federal Buildings Fund to provide funding for reinvestment in government owned assets. In addition, GSA continues to use other funding mechanisms, such as the Energy Savings Performance Contracts, to leverage resources and reduce the overall reinvestment liability of the portfolio. With the support of OMB, GSA may be able to outlease government owned buildings and lease them back improved, assuming the improvements are economical and can be recovered by the lessor with rental payments at a fair market rate. Another alternative may be the outlease of government land for construction and leaseback of the improvements to meet customer needs. These facilities would eventually revert to the government upon expiration of the underlying ground lease.

Indicator(s):

Indicator:1

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