Threats of Budget Cuts Stifle Federal Leasing Activity
November 22, 2011
Federal agencies will hold off on signing new leases in 2012 as congressional gridlock continues, a report released Monday predicts.
The inability of Congress to pass most agency budgets and the specter of future cuts will curtail leasing activity, according to the report by Jones Lang LaSalle Americas Inc., a leasing and property management firm. "Without clear guidance on agency budgets — and an uncertain future in terms of government leadership — federal tenants are likely to maintain their 'wait-and-see' approach to real estate decisions in 2012 and likely beyond," the report said.
Joe Brennan, head of the Government Investor Services Group at the firm, said most leasing activity will be limited to renewals and consolidations of existing leases.