News
State of the Union Reactions
January 27, 2011
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| Yesterday, JLL managing director of government investor servicesJoe Brennan, snapped last night just home from battling snowdrifts, told us the federal stimulus has concluded and we’re at the beginning of another chapter—where we're going to cull waste. President Obama’s State of the Union was great, he says: “Education and infrastructure are all lofty goals we believe in.” But it’s time toseparate the chatter from what’s really happening. There are three views on how to package and cut government spending, and when you get to the bones, each has political problems. | |
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| Obama referenced the government selling acres of federal office space that hasn’t been used in years, but, Joe notes, he hasn’t seen much action. “His motives are pure, but it takes work,planning, and negotiation.” Pursue government deals in play with vigor, Joe says; we’ll have to see what happens with future procurement. He foresees government tenants favoring renewalsover taking new build-to-suit space and, for those that have to move, migration toward existing space, especially in sustainable, transit-oriented downtowns. There will also be a greater focus on space efficiency, hoteling, and work-at-home programs. |
