A responsible landlord will always look to manage his or her real estate portfolio in the most efficient manner. GSA is regularly reviewing how to best manage its real estate portfolio and has recently increased its efforts to help federal agencies dispose of unneeded properties. Since 2010, GSA has completed 907 disposal transactions, which have generated $250.2 million in proceeds and eliminated more than 67,654 acres of excess land. In 2014, GSA sold or transferred 342 facilities across the country, generating more than $42.7 million in sales. That is a 60 percent increase in the volume of disposals since last year. Nationally, GSA’s vacancy rate is 5.5%, far below the private sector average of 16.8%
One of the strategies GSA is using to dispose of federal properties is the Request For information (RFI) process. An RFI is an innovative approach to property disposal that allows stakeholders to provide input on the possible exchange of the building. The government can then use the submissions to make informed decisions and possibly create a deal structure that will dispose of the facility while also letting the government leverage the building for necessary improvements to other government buildings.
The GSA Rocky Mountain Region used the RFI process for the Salt Lake City Motor Pool Building in an effort to get help in determining the optimal disposal solution for this asset. The RFI was issued in October and later followed by an industry day. At the industry day, GSA was able to gauge the private sector’s interest in potential options for disposal of the building, including an exchange for services on federal buildings, a public or negotiated sale, or some other deal structure that could put the building to new use.
GSA received significant interest in this project from a number of entities and is now in the process of developing a Scope of Work to solicit offers. The goal is to have offers back by late spring and award the work by early summer.
The Salt Lake City Motor Pool Building represents a valuable asset for GSA and the government, and issuing an RFI was the first step in finding a new purpose for the building. This and other strategies are improving the federal government’s management of real estate, ensuring that the decisions GSA makes are cost-effective and save taxpayer money.