Congressional gridlock and “stalling economic growth” could combine to put a freeze on many new federal leasing options, a recent report from Jones Lang LaSalle predicts.
Properties already leased by the government will most likely be renewed, but new leases will likely dry up, according to the report, which was released in November.
Kevin Wayer, co-president of the public institutes practice at Jones Lang LaSalle, joined In Depth with Francis Rose to discuss what the federal real estate market could look like in the coming year.
Agencies are facing increased scrutiny in their leasing decisions, the report finds. “Congressional inquiries into the Security and Exchange Commission’s lease at Constitution Center in Washington, DC — and the subsequent voluntary relinquishment of independent leasing authority by the agency – serves as a stark reminder of the new political landscape.
Wayer discussed ways federal agencies are adjusting occupancy to save money as well as what agencies could be impacted the most.