Description

Our September 30th episode hosts Greg Margetich and Norman Dong of the National Federal Development Association on government commercial real estate. Crexi's PRO Perspective series explores various aspects of the commercial real estate industry in conversation with some of its top CRE professionals. In each episode, we feature different guests to tap into their wealth of CRE expertise and explore the latest trends and updates from the world of commercial real estate. In this episode, Crexi's Matt Cors sits with Greg and Norman to discuss the fundamentals of government commercial real estate investments and trends in the sector. Some key takeaways include: From 2008 to the present day, the federal government has slowly focused on reducing and optimizing its spend on square footage. While needs per agency and local and state levels vary, this trend is likely to continue. Financial crises correspond with an increase in government spending at the federal level, where more budget is allocated to departments equipped to handle the situation in question. The pros of leasing to government clients are the security of income and long-term tenants, while cons include -- typically -- the onus on landlords to manage all property needs. Amid COVID-19, the jury's still out on current and future government space requirements. Transaction volume has paused on the federal level, while local and state governments are tightening their belts to support their economies during current events. Governments have a mix of 50:50 leased and owned commercial real estate assets. Courthouses and FBI buildings are likely to be tenant-owned, whereas call centers or more generalized function properties are more likely to be leased. Like this? Hop over to our blog to check out the latest CRE hot tips and insights: https://www.crexi.com/insights