The Biggest GSA Requirements?
While GSA leases already account for just under 52M SF in the region, the list of federal agencies out looking for space is getting bigger, JLL’s Brian Sullivan tells us. (And it's not just for the IT people needed to get "Sebelius" through spell check.) Aside from the FBI's jurisdiction-wide search for a new home, the Executive Office for Immigration Reform, TSA, and US Marshalls all have current requirements in the NoVa market for about 200k SF or greater—TSA for 625k SF. NIH has two requirements in suburban MD that add up to about 500k SF.
But where will GSA tenants weighing between DC, Maryland, and Virginia end up? Though there's attractive rental rates in MD ($35/SF for GSA tenants, on average) and NoVa ($39), the District is still far-and-away the leader of GSA occupancies, as 20% of the entire GSA portfolio lies in the District, and with average District rents at $42, Brian doesn't foresee an exodus anytime soon. (After a stressful day at work, it's nice to be able to walk to the Lincoln Memorial and say "you fought for this?"...or thank him on the good days.)
