Federal Government Becomes Preferred Office Tenant
GSA Leasing & Federal Real Estate Services Team Chair Robert MacKichan and Chicago Real Estate Practice Group Leader Peter Friedman were quoted in a Chicago Daily Law Bulletin article titled, "Federal government becomes preferred office tenant."
The article reports that as private-sector office leasing dwindles during a recession, private property and office building owners depend instead on government tenants. "The government, in a bad economy, is the only one with money," said Mr. Friedman. "They regularly pay and they keep paying, which is the lifeblood of the building owner in a bad economy." He explained that GSA and other government leases are counter-cyclical, since in a downturn, the federal government pumps billions of dollars into new departments and programs that need office space for their personnel. Mr. MacKichan noted there is not only a greater demand for space, but also a greater interest in competing for federal leases. "What might have been in the last couple of years competition with four competitors now has a dozen or more," he said. "This has to be the busiest year that I've had in my practice."