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Office of Real PropertyAsset Management
GSA Portfolio Overview
January 2009
GSA – Federal Agency Update
U. S. General Services Administration
The US General Services Administration leverages the buying power of the federal
government to acquire best value for taxpayers and our federal customers. We
exercise responsible asset management. We deliver superior workplaces, quality
acquisition services and expert business solutions. We develop innovative and
effective management policies.
GSA – Federal Agency Update
U. S. General Services Administration
•Public Buildings Service (PBS)
•Federal Acquisition Service (FAS)
GSA – Federal Agency Update
U. S. General Services Administration
What’s going on TODAY?
1. Presidential Transition2. Economic Stimulus
Package
GSA – Federal Agency Update
U. S. General Services Administration
Public Buildings Service (PBS)
One of the largest and most diversified public RE organizations in the world.
•In 2,100 communities
•6,197 employees
•About 30 appraisers
GSA – Federal Agency Update
1,513 Owned Buildings; 176 million RSF
7,106 Leased Bldgs; 175 million RSF
Over 1,000,000 workers in PBS space
420 historic buildings, including 63 National Historic Landmarks
GSA – Federal Agency Update
PBS in your communityCustomers (major)
JusticeJudiciaryTreasuryDefense
Homeland SecuritySocial Security
InteriorHealth and Human
ServicesEducation
EPA……and many more
Good Neighbor ProgramArts in Architecture
Design ExcellenceDay Care
26%
4%7%
16%
1800 1941 1945 1979 1993world war II
great society contemporar
y
design excellence
historic
Construction Era Owned Inventory
46%
Historic 1810 – 1941
US CourthouseSan Juan, Puerto Rico
Alexander Hamilton Custom House
New York, NY
World War II 1942 – 1949
Federal CenterKansas City, MO
Federal CenterAuburn, WA
Great Society 1950 – 1979
Federal Building and CourthousePhoenix, AZ
Federal Building
Los Angeles, CA
Contemporary 1980 – 1993
Thomas O’ Neill Federal BuildingBoston, MA
Alan Bible Federal BuildingLas Vegas, NV
Design Excellence 1994 – Present
Lloyd George CourthouseLas Vegas, NV
Federal CourthouseIslip, NY
Portfolio Trends
• Increase in square footage
• Decrease in number of buildings– New inventory and disposals– Lease consolidations/expansions
• Decrease in owned vacancy
• Maintained record low vacancy in leased
Space Trends
RSF (in millions)
176
176
180
176.3176
160 167
177.5
145
150
155
160
165
170
175
180
185
2003 2004 2005 2006 2007 2008
Fiscal Year
RS
F Owned
Leased
Space Trends
New Construction
FY02 FY03 FY04 FY05 FY06 FY07 Total
# of Assets 7 2 8 3 5 9 34
Rsf (in millions) 1.8 0.4 1.3 0.6 1.2 5.9 11.3
Cost (in millions)
$483.6 $163.9 $496.9 $110.9 $860.9 $1,983.6 $4,099.7
Reported Excess
FY02 FY03 FY04 FY05 FY06 FY07 Total
# of Assets 94 48 35 26 55 13 271
Rsf (in millions) 5.8 1.4 2.0 2.4 2.2 0.3 14.1
Liability Avoided (in millions)
$171.4 $75.9 $8.8 $184.3 $147.5 $24.0 $611.9
$ Proceeds (in millions)
n/a n/a n/a $5.3 $51.9 $82.2 $139.4
New Inventory
Disposal
Vacancy Trends
GSA Vacancy
8.30%
7.00%7.70%
6.80%
1.40%1.10%1.40% 1.20%
4.20%4.40%4.10%5.10%
1.0%
3.0%
5.0%
7.0%
9.0%
2003 2004 2005 2006 2007 2008
Fiscal Year
Vacan
cy
Owned
Leased
Total
Financial Trends
• Revenue increase driven by leases– Owned increased by almost 3% or $92M– Leased increase over 5% or $241M
• Growth in expenses outpaced revenue– Owned expenses increased by 4.4%– Leased expenses increased by 6.0%
• Leased FFO was negative for the second consecutive year
Financial Trends
Direct Revenue ($ in millions)
3,454
8,324
3,359
3,162 3,242
4,8704,6294,185
3,743
7,9887,428
6,905
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2003 2004 2005 2006 2007 2008
Fiscal Year
Reven
ue
Owned
Leased
Total
Financial Trends
FFO ($ in millions)
1,664.01,644.0
1,433.9
1,672.5
-41.0-1.689.345.0
1,623.01,642.8
1,761.8
1,478.9
-50
450
950
1,450
1,950
2003 2004 2005 2006 2007 2008
Fiscal Year
FF
O
Owned
Leased
Total
Office of Real PropertyAsset ManagementOffice of Real PropertyAsset Management
Reinvestment Liabilities
• Realities• Needs• Funding• Inflation
September 2008
Reinvestment Realities
• Increasing construction costs
• Limited funding
• Large (expensive) national priorities
• Leasing for many long-term requirements
FY2007 Reinvestment Needs
Breakdown of $7.4 B Reinvestment Need
($ in millions)
1 - 2 Years, $2,700
3 + Years, $2,600Immediate Need,
2,100
Reinvestment Funding
Reinvestment Funding (BA54/BA55) ($ in millions)
869722
961
991
618
1,029
814
$0
$200
$400
$600
$800
$1,000
$1,200
2002 2004 2006 2008
Fiscal Year
Office of Real PropertyAsset ManagementOffice of Real PropertyAsset Management
The Path Forward
• Limited Call for 2010• Core Asset Review• Leveraging Resources• Section 412 Authority
September 2008
2010 Limited Call
FY 200825 New Construction and R&A Projects - $1.3B Total32 Lease Prospectuses (including lease alterations)Focus on unresolved issues: i.e. Billings Courthouse
FY 200914 New Construction and R&A Projects- $1.3B Total67% of the projects submitted by the regions did not advance56 Lease Proposals. Most are still under reviewStimulus package impact?
FY 2010Expect 2010 Budget, at best, to resemble 2009 (Stimulus package
impact?)49 New Construction and R&A Projects identified for Directed Call
Core Assets
Core Assets
Financial Performance
Strategic Assets
Investment Rating
Historic Portfolio
Historic Portfolio vs. Total Core Assets Portfolio
Legacy PortfolioLegacy
Percentage
Building Count 217 1424 15%
RSF 43,452,990 177,238,075 25%
PCS $ 2,020,335,518 $ 6,262,672,024 32%
IRIS $ 3,589,177,569 $ 7,724,416,313 46%
NOI $ 461,517,668 $ 2,082,079,066 22%
BA54, 55, 64 obs (FY05 - FY07) $ 1,645,758,459 $ 5,416,212,359 30%
Historic Portfolio (cont.)
Historic Portfolio – Core Asset Holding Periods
>15 Long Term6-15
Transition0-5 Short
Term Grand Total
Building Count 180 32 5 217
RSF 40,660,686 2,155,433 636,871 43,452,990
PCS $ 1,859,459,187 $ 92,287,085 $ 68,589,246 $ 2,020,335,518
IRIS $ 3,256,743,864 $ 172,143,341 $ 160,290,364 $ 3,589,177,569
NOI $ 454,953,383 $ 7,557,812 $ (993,527) $ 461,517,668
BA54, 55, 64 obs (FY05 - FY07)
$ 1,575,221,895 $ 57,214,005 $ 13,322,559 $ 1,645,758,459
Capital Needs
– New Construction $16.3 B .• Courts $2.5 billion• CBP $4.9 billion• Executive Agency Priorities $4.8 billion• Acquisition & New Construction $4.1 billion
– R&A $8.1 B .• R&A pipeline projects $5.1 billion• Additional immediate repair needs $3.0 billion• Limited scope projects & energy mandates $0.9 billion
TOTAL NEEDS $25.3 B
Sources of Capital
• Traditional Sources• Rent• Direct Appropriations
• Existing Authorities• Historic Outleasing• ESPC• 412• Disposal (exchanges, outlease)
• New Authorities• Leasing
• (credit tenant leasing) purchase options
• Stimulus Package???
GSA – Federal Agency Update`
Real Property Asset Management
$2 to 3 Million$2 to 3 Million
annually for individual contracts
for appraisal services
3 Appraisal Programs:•Fair Market Value (FMV) and Acquisition•Fair Annual Rent (FAR)•Property Disposition, Utilization
GSA – Federal Agency Update
Dwight D. Eisenhower Executive Office Building
Old Post Office
U.S. Department of Justice
Visit www.gsa.gov and
www.govsales.gov
GSA – Federal Agency Update
Oklahoma City Federal Building
SSA Call Center; adaptive reuse, Auburn, WA
Center for Drug Evaluation and Research, FDA, White Oak, MD
Kansas City IRS; Lease construction
GSA – Federal Agency Update
GSA National Appraisal Program Contacts:
Acting Chief Appraiser and Disposal Appraisal ProgramNicholas S. Hufford, MAI, [email protected]
Market Value Appraisal Program:John N. Libeg, MAI, [email protected]
Fair Annual Rent ProgramJay [email protected] see Regional Contacts list
GSA – Federal Agency Update
Web Resources:USA website http://www.usa.gov/
GSA website http://www.gsa.gov/
Central contractor registration http://www.ccr.gov/
Federal contracting opportunities http://www.fedbizopps.gov/
Get DUNS number http://www.dnb.com/US/duns_update/index.html
GSA Online RE auction http://auctionrp.com/auctions2/
More government sales http://www.govsales.gov/html/index.htm
GSA – Federal Agency Update
GSA – Federal Agency Update
THANK YOU!
Nicholas S. Hufford, MAI, CAEActing Valuations Director and National Appraiser for Property DispositionGeneral Services Administration Public Buildings Service Office of Real Property Asset Management Valuations Division1800 F Street NW, Suite 7300Washington DC 20405
202.501.2055202.631.2751 cell202.219.9166 fax