About a fifth of GSA-managed buildings are consistent losers in the sense that their rental income exceeds the GSA’s cost to operate and maintain them, GAO has said in the latest report on a long-running issue.
GAO found 251 building underperforming consistently, 33 of which lost $100,000 or more each in all of fiscal 2009-2013.
While GSA is moving federal tenants into owned space, leasing excess space to non-federal tenants, cutting operating and maintenance costs and taking other steps, it faces limits in how much it can do, the report said. These include restrictions on how much rent it can charge, the characteristics of the buildings themselves, overall market conditions and high operating costs.
The consistent poor performers on average are 23 years older than other buildings, adding another complication in many cases: historic designation that restricts making renovations that might attract tenants.
Management of federal real property has been on GAO’s high-risk since 2003, for reasons including another issue raised in the most recent report, unreliable or inaccurate inventory data. The White House earlier this year launched the National Strategy for the Efficient Use of Real Property and the Reduce the Footprint policies, while legislative proposals to encourage the closing of unneeded buildings have been pending for years.
