Negotiating on Federal Leased Opportunities

GSA leases space in diverse locations when leasing is the best solution for meeting federal space needs. More than 50 percent of GSA leases are for 10,000 square feet or less, so owners do not have to be corporate giants to compete for lease contracts.

The following briefly explains how private property owners and managers can compete for lease contracts. It outlines the types of space GSA ordinarily leases, the lease terms and conditions, offering space to GSA, how GSA awards leases, and who to contact for additional information.

More information on leasing is available on the Leasing Overview page.

Scope of GSA Leasing

GSA leases all types of space for most federal agencies, including offices, laboratories, warehouses, clinics, and border stations in cities, suburbs and rural areas throughout the United States and its territories.

Lease Conditions

GSA leases space in a wide range of sizes, locations, and terms to meet the requirements of federal agencies.  A Solicitation for Offers (SFO) is submitted by potential landlords.  The Solicitation for Offers is a proposal to lease space indicating the type and amount of space needed and the conditions of the lease. The solicitation also gives detailed information on how to submit a proposal, contact name and address, and the deadline by which it must be received by the GSA regional office.  Each Solicitation for Offers for a new lease differs in its requirements.

The amount of space requested may range from a single room to an entire building. Initial alterations to prepare space for occupancy differ according to the needs of the tenant agency. In some cases, new construction is solicited. This “lease construction” process is used for new construction and for procurements requiring significant design work, regardless of type; most suitable for the unique needs various tenants.  In normal circumstances, new construction is in areas of high visibility and community impact, with procurements requiring significant design work.  This process is what the federal government utilizes to procure “build-to-suit” space.  In addition to new construction, this includes adaptive reuse of existing buildings, “full gut” rehabilitation replacement of envelope, mechanical systems, ceiling, service cores, etc.) and minor renovations.  The program involves a process of submittal and evaluation where potential candidates are selected on factors that can include the quality of the site and facility design as well as the quality of the offeror.

Terms for GSA leases are usually 5 to 10 years although some leases may be shorter or as long as 20 years. The term is based on the agency’s requirements and market conditions for the present and future.

Offering Space to GSA

Requirements for space over 10,000 square feet are advertised in local newspapers or the Federal Business Opportunities webpage. Space requirements less than 10,000 square feet are usually acquired by a more informal canvassing and contacts with potential offerors. Property managers or owners interested in offering space to GSA for lease are encouraged to contact the appropriate regional office.

Submitting a Proposal

Each Solicitation for Offers to lease space indicates the type and amount of space needed and the conditions of the lease. The solicitation also gives detailed information on how to submit a proposal, contact name and address, and the deadline by which it must be received by the GSA regional office.

Lease Awards and Payments

GSA solicits offers on a competitive basis, negotiates with offerors, and, for most acquisitions, and makes awards to the lowest priced acceptable offer. Some solicitations also consider trade-offs between price and other factors. Typically, for acquisitions greater than 10,000 square feet, the award is based on a building rate and a specific allowance for the build out of the tenant space. Once the award is made, the final cost of the build out is negotiated, based on the design drawings of the tenant’s space. After acceptance of the space, GSA begins monthly rent payments in arrears.
 

Last Reviewed 2015-10-07