Is Uncle Sam still paying the rent?

Fed government leases more than 6M sf of office in the NY metro area

TRD New York /
Jan.January 04, 2019 11:00 AM

Uncle Sam (Credit: iStock)

Could the government shutdown hit commercial landlords’ wallets?

The General Services Administration is the largest public real estate organization in the nation, providing space for more than 1.2 million federal workers, according to Bloomberg News.

The greater New York metro area is second only to the areas around Washington, D.C. and Virginia in terms of square footage leased by the GSA. The federal government leases more than 6 million square feet in the area spanning New York, New Jersey and Pennsylvania, according to Bloomberg.

That adds up to $283 million per year in rent payments.

But judging from past shutdowns, the impact on landlords could depend on how long this stretch lasts.

Joseph Brennan, a managing director at JLL, previously told Bisnow that landlords don’t have to worry in the short term, but a prolonged shutdown could cause trouble.

“It’s not going to hurt your investment,” he said. “They’re going to pay the rent, and you should fulfill your lease obligations … The broader question I don’t think anyone has the answer to is what happens if it goes 60 or 90 days and gets into two or three rent payments.”

The GSA in 2017 signed an 18-month lease to rent an apartment in Trump Tower. [Bloomberg, Bisnow] – Rich Bockmann


Related Articles

arrow_forward_ios
An example of roll-off waste management (Credit: YouTube, iStock)

Big building owners prevent city from dumping container-pickup in trash-collection reform

Alexandria Ocasio-Cortez, Bernie Sanders and Elizabeth Warren

By the numbers: Breaking down national housing agendas from the far left

“I can talk about erections all day”: NAR tech consultant’s bizarre fireside chat

Nuveen CEO Vijay Advani, Blackstone President & COO Jonathan Gray and one of the Texas properties

Blackstone just sold off a 29M sf national industrial portfolio

The purge continues: WeWork’s head of real estate is leaving

Council member Vanessa Gibson (Credit: New York City Council)

Commercial landlords face new fines as City Council passes anti-harassment bill

As House begins impeachment inquiry, here’s what we know about Trump’s Ukraine-real estate ties

Judith and Rudy Giuliani Rudolph and Judith Giuliani are divorcing after 16 years. (Credit: Getty Images, Trulia, Highrises)

Luxury properties at play in Rudy Giuliani’s ugly divorce

arrow_forward_ios