The federal government is the largest single lessee of space in the United States and federal government tenants are backed by the full faith and credit of the U.S. government. But leasing to the federal government is not without its risks and complications. Federal government leases are government contracts, and the federal government attaches a number of requirements and conditions through the contracting process. Commercial landlords may be unfamiliar with a number of these government-specific requirements. Similarly, the government has its own processes for awarding leases, resolving disputes during the term of the lease and addressing the sale of an asset with a government lease that will likely be foreign to commercial real estate practitioners.

Austerity measures adopted by the government in an attempt to rein in costs have led to a smaller universe of government leases. This, in turn, has led to increased competition for a piece of the shrinking government leasing business. In this atmosphere of increased competition, contracting officers have become more sophisticated and discerning in their procurement decisions. How, then, should landlords approach government leasing in this environment of heightened scrutiny and competition?

This guide is a primer for those new to government leasing, as well as a resource for more experienced federal real estate practitioners, government contracting officers, and leasing specialists.