A panel of real estate industry representatives is drawing up recommendations for changes in leasing procedures by the General-Services Administration - the nation's largest tenant - to make leasing to the government more attractive.
At a conference held here Feb. 1 and 2, owners and managers told GSA officials, in effect, pay more and simplify the process.
The real estate executives said many landlords do not want to lease to GSA because of its current complicated practices. One panelist urged the agency to help itself by "taking some of the fear out of leasing to the federal government."
The most important change GSA could make, according to the panel, would be an annual escalator provision that would raise rental payments as operating expenses increase. Such a move would require congressional approval.
They also recommended modifying the method of measuring space and increasing the length of leases.
The final recommendations will be published in the Federal Register for public comment. GSA could adopt some of the proposals and would have to ask Congress for permission to implement others.
GSA currently leases 83 million square feet of space through 7,000 separate lease agreements. The largest single concentration of leased space, 25 million square feet, is in the Washington area.
William Leary, senior vice president of John Hancock Mutual Life Insurance Co., chaired the group. Representing GSA were Administrator Jay Solomon; Public Building Service Commissioner James B. Shea Jr., and Loy M. Shipp Jr., assistant commissioner for space planning and management.
The panel is also expected to recommend that GSA:
Simplify its bid request and lease forms to eliminate unnecessary legal language.
Adopt a single policy on holdover rents - payments made after the initial term of a lease have expried but the government continues to occupay the space.
Encourage agencies to plan space requirements in advance to give more lead time in acquiring space.
Seek the amendment of the Economy Act of 1932, which restricts GSA'current dealings.
Increase the 2,500-square-foot limite on space GSA can lease without formal bidding procedures.