The General Services Administration (GSA) has released the latest federal assets identified for disposition. Out of the eight properties selected for sale or lease-cancellation, two are Texas-based.
The updated property list accounts for more than 2 million rentable square feet, with Texas-based assets covering approximately 240,000 rentable square feet. Selling Texas federal properties would impact federal and state agencies, leaving them without office space. The buildings featured in the report are:
- The San Antonio Federal Building West.
- The Labranch Federal Building in Houston.
The administration rescinded a list – originally posted March 5 – of more than 440 properties that would be disposed of as part of a nationwide cost-saving measure. The GSA has been working to revise the list of assets since then, targeting buildings that are considered non-core assets – meaning they are not essential to government operations.
Following the response to the original list, the GSA has adjusted its approach to incrementally examine shorter lists of assets that have already been evaluated. Evaluations factor in criteria such as deferred maintenance, operating cost, utilization and the availability of replacement space in the local market to determine which buildings are best suited for accelerated disposition.
Selling or cancelling the leases for these federal buildings would enable the government to redirect allocations away from underutilized office spaces or deferred maintenance. The GSA estimates that approximately $430 million could be saved in annual operating costs.
Potential disposition options for the properties include sale-leasebacks, ground leases and other forms of public-private partnerships. The GSA will continue to review and revise the non-core assets list and will post additional assets on a regular basis.
(Photo courtesy of G. Edward Johnson.)
