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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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.