GSA Sells Properties to Improve Funding & Real Estate Market
The General Services Administration (GSA) has recently experienced a significant decrease in their building funds, from $9.1 billion in 2010 to $8 billion in 2012. These funds finance federal construction projects, building renovations, and new leases. As a way to replenish these funds the GSA is selling off federal properties that have been determined to be either underutilized, or have increasingly high maintenance costs.
Along with the need to replenish the building funds is a White House mandate that was issued in May 2012. The directive states that any requests by federal agencies for additional space must be offset by office consolidations, co-locations, or selloffs. As such, the GSA has been working with federal agencies to identify unneeded properties and quickly transition them to the disposal process.
Properties that are not conveyed to eligible recipients for a public purpose are sold by competitive bid to private individuals. Unneeded or underutilized federal property can vary widely in type and value, and may include: undeveloped land; office buildings; warehouses; commercial and industrial facilities; military holdings; and single- and multi-family residences. These properties are located within the fifty states, the District of Columbia, and U.S. Territories.
With thousands of properties in the federal portfolio, disposing of underused federal property is a considerable task, and the GSA has become more aggressive in its selloff endeavors. While FY2012 saw the sales of 79 properties, FY2013 has already reported 28 properties sold. It is expected that as the real estate market continues to recover, the GSA will persist in increasing the number of properties for sale.
Additional information on acquiring federal properties that are being disposed of can be found on the Office of Property Disposal’s Resource Center website