Lease Cost Avoidance

PBS is focused on achieving taxpayer savings by avoiding increased lease cost through the timely replacement of expiring leases. The Lease Cost Avoidance Plan (LCAP) is GSA's plan to achieve approximately $4 billion in cost avoidance on leases becoming effective through Fiscal Year 2023. The LCAP targets the 20% of GSA leases that accounts for roughly 80% of annual leasing costs. As the targeted leases are near expiration, we will seek to avoid costs by establishing longer firm term leases; negotiating favorable rates; reducing rentable square feet (RSF) and utilizing GSA’s Total Workplace Program; backfilling vacant federal or leased space; and accelerating lease cycle time.

Lease Cost Avoidance compares a PBS executed lease to that of the status quo. For example, if an agency is currently in 10,000 RSF and through our efforts the space is reduced to 9,000 RSF the delta between the two is used as cost avoidance. The inverse is also true should an agency expand. We also compare the market rate to the one PBS agreed to with a lessor.

Success Stories

PBS continues to realize successful lease cost avoidance through reduction of the lease footprint, achieving better pricing through longer terms, and negotiating rates below market. See examples of significant cost avoidance for taxpayers below (PBS Money Minutes linked below).

Public Buildings Service Money minute on the Department of Commerce; 16% Reduced Footprint; 39% below Authorization Rate; 15 Year Firm Term Lease; $9.8M Savings Realized

GSA's National Capital Region Saves the Department of Commerce $9.8M [PNG - 291 KB]—Their long term lease was negotiated 39% below the market rate and was awarded with a 15 year firm and full term.

Public Buildings Service Money minute on the United States Attorney's Office in Philadelphia. 4.1% Reduced Footprint; 30.5% below Authorization Rate; 10 Year Firm Term Lease; $33.2M Savings Realized

GSA's Mid-Atlantic Region Saves the US Attorney's Office in Philadelphia $33.2M [PNG - 96 KB]—Their new long term lease upgraded their space, reduced their footprint by 4.1%, and saves taxpayers more than $33.2 million dollars.

Public Buildings Service Money Minute on the Environmental Protection Agency in Dallas Texas. New lease was 36% below authorization rate, 4.3% square foot reduction, 20 year firm term lease, $56.8M Savings Realized

The Environmental Protection Agency’s 20-year firm term lease in Dallas saves taxpayers $56.8 million in Lease Cost Avoidance [PNG - 311 KB]—EPA’s long term lease was negotiated 36% below authorization rate, reduced their footprint by 4.3%, and saves taxpayers $56.8 million dollars.

Info-graphic sharing information on the Department of Transportation Headquarters Purchase (details on page)

GSA’s Purchase of the Department of Transportation’s Headquarters Saves Taxpayers $409 Million [PNG - 295 KB]—The early purchase saved taxpayers an additional $99.8 million in avoided rent costs.

Info-graphic Sharing Information on USDA's New Consolidated Lease (details on page)

The Department of Agriculture’s Consolidated Lease Saves $1.5 Million Annually in Rent [PNG - 252 KB]—The new lease consolidated two leases into federal space and reduced the agency's footprint by 52%.

Info-graphic Sharing Information on the EPA's Lease Replacement (details on the page).

The Environmental Protection Agency’s Replacing Lease in Denver Achieved $67 Million in Cost Avoidance [PNG - 248 KB]—The replacing lease was awarded with a 15-year firm and full term, negotiated 14% below the authorization rate, and reduced the agency’s footprint by 29%.

Last Reviewed: 2020-09-25