BOMA International Advocacy Resource Regarding Potential GSA Lease Cancellations

BOMA International has created a new guide to provide some insight on the Federal Government's indication that they are canceling thousands of CRE leases. Download the guide here.

A message from Don Davis, Esq., Vice President of Advocacy & Building Codes, BOMA International:

I have received numerous inquiries on this subject, so I am sure that you are also being questioned about 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 have any questions 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.

This document is intended for general informational purposes and should not be considered legal advice. Properties are encouraged to consult with their legal counsel and obtain client-specific approval when determining how to implement any guidance provided. While Houston BOMA does not take any political or legal position on this matter, our goal is to ensure our members have access to practical resources to navigate these complex issues.