New Resources: GSA Lease Cancellations

BOMA INTERNATIONAL ADVOCACY COMMITTEE ISSUES GUIDANCE ON GSA LEASES 

Dear BOMA FTL/PB Member,

I am touching base today to provide some insight on the Federal Government's indication that they are canceling 1000's of CRE leases.  I have received numerous inquiries on this subject so I am sure that you are also being questioned on what is happening at the General Services Administration (GSA)  and in Washington, D.C. To help answer questions about the status of commercial leases, I have prepared the attached fact sheet regarding government leases.

Although it is not clear what the next steps are for the federal government, the one issue that I think needs to be cleared up is that CRE leases with GSA are different than other government contracting processes. Specifically, while other government contracts ALWAYS have a termination clause for" convenience or need of the government," standard GSA leases specifically do not allow for no-cause termination. Model GSA leases are for a finite period and termination is only permissible under the terms of the contract/lease on the property or for a material breach.

The document explains in better detail, and it is my hope that it should help if you get any questions from members on the subject. In the meantime, please feel free to reach out to me or any member of the Advocacy team at govt@boma.org

 Best regards,

Don Davis, Esq.
BOMA International's Vice President, Advocacy and Building Codes