Northwest/Arctic Region’s Leasing Solutions Save Taxpayer Dollars

GSA’s Northwest/Arctic Region Leasing Division is committed to delivering on GSA’s mission to provide the best value and savings to federal agencies and taxpayers and recent business solutions have achieved significant results.

In August 2010, GSA awarded an expansion lease for the Immigration and Custom Enforcement Agency (ICE) in Medford, Oregon. After ICE determined they no longer needed the additional space, GSA was able to negotiate with the lessor to settle all costs and to terminate the expansion space saving approximately $1.6 million in lease costs over 10 years.

The 18-story Edith Green/Wendell Wyatt Federal Building in downtown Portland, Oregon.

GSA recently moved the Citizenship and Immigration Service (CIS) into newly available space the Anchorage Federal Building meeting CIS’s space and mission requirements and saving the taxpayer approximately $75,000 per year.  The move also supports the federal government’s goal to use existing federal inventory more efficiently.

Last month, the Regional Leasing Division saw an opportunity to save costs and become more efficient by managing leases for two Department of Energy office spaces through one lease contract. At the time of the original lease, the properties in Richland, Washington, were owned by two different lessors. Today the two buildings are owned by the same lessor thus allowing GSA to consolidate the lease documents into one, although the agency remains in two locations.  The leasing division negotiated a 10 year firm lease with two five year option at an initial rent of $19.49 per square foot slightly below market rate.  The total rents over the full term of the lease will be $62,935,255, a total contract saving of $8,550,088 compared to market rents. In addition, GSA made sure both buildings now comply to Energy Star and Seismic regulations.

In Boise, Idaho, GSA was able to negotiate with three major tenants – the U.S. Marshals, Health and Human Services Office of the Inspector General and the Federal Protective Service – to ensure that all of them had the space they needed to fulfill their mission within the McClure Federal Building.  An expansion by the Marshals Service was pushing the HHS office out of their existing space.  Rather than finding leased space for HHS, property manager Scott Graham asked FPS if they were willing to reduce their space to accommodate HHS. Keeping federal agencies in federally owned space is more cost effective for the tenant agencies and the GSA.  HHS is paying approximately $17 per square foot in rent at the McClure Federal Building versus an estimated $21 per square foot in leased space. GSA’s own Fleet team was also being pushed out of the building due to an expansion by the U.S. Fish and Wildlife Department but GSA reduced its own property management office to accommodate the fleet team thus saving additional potential lease costs.

Learn more about GSA’s Leasing Program. Click here for details on GSA’s lease inventory.

GSA leases should meet sustainability requirements.

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