Transcript Document

GSA
Office
Portfolio
of Real
Overview
Property
Asset Management
January 2009
GSA – Federal Agency Update
U. S. General Services Administration
The US General Services Administration
leverages the buying power of the federal
government to acquire best value for
taxpayers and our federal customers. We
exercise responsible asset management. We
deliver superior workplaces, quality
acquisition services and expert business
solutions. We develop innovative and
effective management policies.
GSA – Federal Agency Update
U. S. General Services Administration
•Public Buildings Service (PBS)
•Federal Acquisition Service (FAS)
GSA – Federal Agency Update
U. S. General Services Administration
What’s going on
TODAY?
1. Presidential Transition
2. Economic Stimulus
Package
GSA – Federal Agency Update
U. S. General Services Administration
Public Buildings Service (PBS)
One of the largest and most diversified
public RE organizations in the world.
•In 2,100 communities
•6,197 employees
•About 30 appraisers
GSA – Federal Agency Update
1,513 Owned Buildings; 176 million RSF
7,106 Leased Bldgs; 175 million RSF
Over 1,000,000 workers in PBS space
420 historic buildings,
including 63 National
Historic Landmarks
GSA – Federal Agency Update
PBS in your community
Good Neighbor Program
Arts in Architecture
Design Excellence
Day Care
Customers (major)
Justice
Judiciary
Treasury
Defense
Homeland Security
Social Security
Interior
Health and Human
Services
Education
EPA……and many more
Construction Era
Owned Inventory
46%
26%
16%
7%
4%
1800
historic
1941
1945 great
world war
society
II
1979
1993
contemporary
design
excellence
Historic
1810 – 1941
Alexander Hamilton Custom House
New York, NY
US Courthouse
San Juan, Puerto Rico
World War II
1942 – 1949
Federal Center
Kansas City, MO
Federal Center
Auburn, WA
Great Society
1950 – 1979
Federal Building
Los Angeles, CA
Federal Building and Courthouse
Phoenix, AZ
Contemporary
1980 – 1993
Thomas O’ Neill Federal Building
Boston, MA
Alan Bible Federal Building
Las Vegas, NV
Design Excellence
1994 – Present
Federal Courthouse
Islip, NY
Lloyd George Courthouse
Las Vegas, NV
Portfolio Trends
• Increase in square footage
• Decrease in number of buildings
– New inventory and disposals
– Lease consolidations/expansions
• Decrease in owned vacancy
• Maintained record low vacancy in
leased
Space Trends
RSF (in millions)
185
RSF
176
180
180
175
176
176
170
165
160
177.5
176.3
Leased
167
160
155
150
145
2003
2004
2005
Owned
2006
Fiscal Year
2007
2008
Space Trends
New Inventory
New
Construction
# of Assets
Rsf (in millions)
Cost (in
millions)
FY02
FY03
FY04
FY05
FY06
FY07
Total
7
2
8
3
5
9
34
1.8
0.4
1.3
0.6
1.2
5.9
11.3
$483.6
$163.9
$496.9
$110.9
$860.9
$1,983.6
$4,099.7
FY02
FY03
FY04
FY05
FY07
Total
Disposal
Reported
Excess
FY06
# of Assets
94
48
35
26
55
13
271
Rsf (in millions)
5.8
1.4
2.0
2.4
2.2
0.3
14.1
Liability Avoided
(in millions)
$171.4
$75.9
$8.8
$184.3
$147.5
$24.0
$611.9
n/a
n/a
n/a
$5.3
$51.9
$82.2
$139.4
$ Proceeds (in
millions)
Vacancy Trends
GSA Vacancy
Vacancy
9.0%
8.30%
7.70%
6.80%
7.0%
7.00%
Owned
5.0%
5.10%
Leased
4.10%
4.40%
4.20%
3.0%
1.40%
1.20%
1.0%
1.10%
1.40%
2003 2004 2005 2006 2007 2008
Fiscal Year
Total
Financial Trends
• Revenue increase driven by leases
– Owned increased by almost 3% or $92M
– Leased increase over 5% or $241M
• Growth in expenses outpaced revenue
– Owned expenses increased by 4.4%
– Leased expenses increased by 6.0%
• Leased FFO was negative for the second
consecutive year
Financial Trends
Direct Revenue ($ in millions)
8,324
8,000
7,428
7,988
Revenue
7,000
6,905
6,000
4,629
5,000
4,000
3,000
4,870
Total
4,185
3,743
3,359
3,162
3,454
3,242
2,000
2003
2004
2005
2006
Fiscal Year
2007
Owned
Leased
2008
Financial Trends
FFO ($ in millions)
1,950
1,761.8
1,478.9
1,672.5
1,450
FFO
1,644.0
1,642.8
1,664.0
1,623.0
Owned
Leased
Total
1,433.9
950
450
89.3
45.0
-1.6
-41.0
-50
2003
2004
2005
2006
Fiscal Year
2007
2008
Office
Property
OfficeofofReal
Real
Property
Asset
AssetManagement
Management
Reinvestment Liabilities
• Realities
• Needs
• Funding
• Inflation
September 2008
Reinvestment Realities
• Increasing construction costs
• Limited funding
• Large (expensive) national priorities
• Leasing for many long-term
requirements
FY2007 Reinvestment Needs
Breakdown of $7.4 B Reinvestment
Need
($ in millions)
3 + Years, $2,600
Immediate Need,
2,100
1 - 2 Years, $2,700
Reinvestment Funding
Reinvestment Funding (BA54/BA55)
($ in millions)
$1,200
$1,000
991
1,029
869
961
722
$800
814
$600
618
$400
$200
$0
2002
2004
2006
Fiscal Year
2008
Office
Property
OfficeofofReal
Real
Property
Asset
AssetManagement
Management
The Path Forward
• Limited Call for 2010
• Core Asset Review
• Leveraging Resources
• Section 412 Authority
September 2008
2010 Limited Call
FY 2008
25 New Construction and R&A Projects - $1.3B Total
32 Lease Prospectuses (including lease alterations)
Focus on unresolved issues: i.e. Billings Courthouse
FY 2009
14 New Construction and R&A Projects- $1.3B Total
67% of the projects submitted by the regions did not advance
56 Lease Proposals. Most are still under review
Stimulus package impact?
FY 2010
Expect 2010 Budget, at best, to resemble 2009 (Stimulus package
impact?)
49 New Construction and R&A Projects identified for Directed Call
Core Assets
Financial
Performance
Core Assets
Investment
Rating
Strategic
Assets
Historic Portfolio
Historic Portfolio vs. Total Core Assets Portfolio
Legacy
Building Count
Legacy
Percentage
Portfolio
217
RSF
43,452,990
PCS
$ 2,020,335,518
IRIS
1424
15%
177,238,075
25%
$
6,262,672,024
32%
$ 3,589,177,569
$
7,724,416,313
46%
NOI
$ 461,517,668
$
2,082,079,066
22%
BA54, 55, 64 obs (FY05 - FY07)
$ 1,645,758,459
$
5,416,212,359
30%
Historic Portfolio
(cont.)
Historic Portfolio – Core Asset Holding Periods
6-15
Transition
>15 Long Term
180
Building Count
32
40,660,686
RSF
0-5 Short
Term
Grand Total
5
2,155,433
217
636,871
43,452,990
PCS
$
1,859,459,187
$
92,287,085
$
68,589,246
$
2,020,335,518
IRIS
$
3,256,743,864
$
172,143,341
$
160,290,364
$
3,589,177,569
NOI
$
454,953,383
$
7,557,812
$
(993,527)
$
461,517,668
BA54, 55, 64 obs
(FY05 - FY07)
$
$
57,214,005
$
13,322,559
$
1,645,758,459
1,575,221,895
Capital Needs
– New Construction
•
•
•
•
Courts
CBP
Executive Agency Priorities
Acquisition & New Construction
– R&A
$16.3 B
$2.5 billion
$4.9 billion
$4.8 billion
$4.1 billion
$8.1 B
• R&A pipeline projects
• Additional immediate repair needs
$5.1 billion
$3.0 billion
• Limited scope projects & energy mandates
$0.9 billion
TOTAL NEEDS
.
.
$25.3 B
Sources of Capital
• Traditional Sources
• Rent
• Direct Appropriations
• Existing Authorities
•
•
•
•
Historic Outleasing
ESPC
412
Disposal (exchanges, outlease)
• New Authorities
• Leasing
• (credit tenant leasing) purchase options
• Stimulus Package???
GSA – Federal Agency Update`
Real Property Asset Management
$2 to 3 Million
annually for
individual contracts
for appraisal services
3 Appraisal Programs:
•Fair Market Value (FMV) and Acquisition
•Fair Annual Rent (FAR)
•Property Disposition, Utilization
GSA – Federal Agency Update
Old Post Office
Dwight D. Eisenhower Executive Office Building
U.S. Department of Justice
Visit www.gsa.gov
and
www.govsales.gov
GSA – Federal Agency Update
Center for Drug Evaluation and
Research, FDA, White Oak, MD
Oklahoma City Federal Building
SSA Call Center; adaptive reuse, Auburn, WA
Kansas City IRS; Lease construction
GSA – Federal Agency Update
GSA National Appraisal Program Contacts:
Acting Chief Appraiser and
Disposal Appraisal Program
Nicholas S. Hufford, MAI, CAE
[email protected]
202-501-2055
Market Value Appraisal Program:
John N. Libeg, MAI, SRA
[email protected]
202-208-0746
Fair Annual Rent Program
Jay Koepf
[email protected]
202-219-3052
Also see Regional Contacts list
GSA – Federal Agency Update
Web Resources:
USA website
http://www.usa.gov/
GSA website
http://www.gsa.gov/
Central contractor registration
http://www.ccr.gov/
Federal contracting opportunities
http://www.fedbizopps.gov/
Get DUNS number
http://www.dnb.com/US/duns_update/index.html
GSA Online RE auction
http://auctionrp.com/auctions2/
More government sales
http://www.govsales.gov/html/index.htm
GSA – Federal Agency Update
GSA – Federal Agency Update
Nicholas S. Hufford, MAI, CAE
Acting Valuations Director and
National Appraiser for Property Disposition
General Services Administration
Public Buildings Service
Office of Real Property Asset Management
Valuations Division
1800 F Street NW, Suite 7300
Washington DC 20405
THANK YOU!
202.501.2055
202.631.2751 cell
202.219.9166 fax
[email protected]