The General Services Administration cut its spending on new leases by 96 percent from fiscal 2011 to 2012, according to a new report.
New lease awards fell from $1.2 billion in fiscal 2011 to $46 million in 2012, according to the report released Wednesday by real estate company Jones Lang LaSalle
The report attributed the steep drop to uncertainty about future budgets, congressional gridlock and increased scrutiny of GSA spending.
“In the first four years of the Obama administration, there was a dramatic expansion of federal leasing activity, then a dramatic pullback,” said Joe Brennan, managing director at Jones Lang LaSalle
But while leasing has been heavily constrained over the last year, Brennan said he expects it to pick back up.
“We expect 2013 to be a much busier year, thanks to tremendous pent-up demand and tens of millions of square feet of lease expirations,” Brennan said.
He said ultimately the federal government will take up less space because of administration mandates that agencies maintain or reduce their current footprint.
The federal government currently occupies 4.6 percent of all leased space nationwide, according to Brennan.