Mid-Atlantic Region Negotiates $3.6 Million in Savings for FBI
GSA provides workspace and related services for over 100 federal client agencies serving more than one million workers through the GSA's Public Buildings Service. Whenever possible, client agencies are located in existing government-owned space. If suitable space in the government inventory is not available, GSA acquires leased space in privately owned buildings.
When privately owned space is leased, GSA Realty Specialists endeavor to foster effective communication between the lessor, tenant agencies, and appropriate GSA offices to ensure client agencies receive the best value for their leasing actions. Recently, GSA Realty Specialist Joe Beck negotiated two new leases for the Federal Bureau of Investigation (FBI) in Stafford, Virginia. The negotiations saved the FBI $3.6 million over the life of the leases.
The FBI’s Critical Incident Response Group (CIRG) in Stafford, VA, was nearing expiration of two leases, totaling nearly 65,000 rentable square feet (RSF). A Request for Lease Proposals (RLP) was issued and the incumbent lessor, who knew that time was an issue with the upcoming expiration dates, requested a significant price increase for the two leases.
Joe partnered with a local broker to review the market data and worked hard at the negotiation table. Through aggressive negotiations, GSA was able to keep FBI in their current space at rent below the current market rates, and negotiate an additional $110,000 in rent credit.
After less than four months from RLP issuance, the two new leases were awarded in January 2016, and the excellent negotiations on behalf of GSA yielded a reduction in rental cost of $1.98 million ($5.76/rsf) and $1.71 million ($5.64/rsf) over the lease terms.