Commercial Value of Excess Properties Lower than Expected
The federal government’s hopes to realize up to $15 billion by unloading thousands of excess properties is likely to fall short of expectations, as a majority of its inventory has little commercial value, reports Federal Times.
There is only limited demand for the older, empty buildings the government intends to sell, said Spencer Levy, executive managing director of capital markets at CBRE.
Savings from reduced maintenance and upkeep costs may provide the most lasting value to the government. For its’ part, the General Services Administration says it is paying attention to factors other than price.
“We of course want the highest sale price possible, but ensuring the building is available for reuse or redevelopment is a high priority as well,” said GSA spokeswoman Angela Brees.