Bill Overview
Title: OUR Public Buildings Act
Description: This bill establishes requirements for outleasing certain federal buildings. Specifically, the General Services Administration (GSA) must develop and require the use of standard clauses to use in any outlease agreement that is for a public building that is at least 150,000 gross square feet; is entered into by the GSA and a private entity; for which the leased space totals at least 51% of the usable square feet of the building; and for which the term of the lease, including options, is in excess of five years. Any such agreement must require the lessee to submit a form disclosing any foreign ownership interest in the outlease. The GSA may not enter into such an outlease with the President, the Vice President, the head of an executive agency, or a Member of Congress. The outlease shall not take effect if Congress enacts a joint resolution of disapproval of the outlease and such joint resolution is signed by the President.
Sponsors: Rep. Titus, Dina [D-NV-1]
Target Audience
Population: Individuals involved with large federal building leases
Estimated Size: 300000
- Federal buildings often host a variety of government offices, public services, and contractors who use these facilities.
- The General Services Administration (GSA) manages many federal buildings and is responsible for their leasing arrangements.
- Private entities that lease federal buildings can include businesses, non-profits, and other organizations looking for office space.
- Foreign ownership disclosure requirements may impact foreign businesses or entities that are potential lessees of federal properties.
- The size requirement (at least 150,000 gross square feet) targets large federal buildings, affecting larger operations and potentially impacting more organizations within them.
- There are specific exclusions from the leasing process, ensuring top government officials aren't involved, which maintains ethical standards.
Reasoning
- The policy is mainly directed towards federal buildings and private entities that lease large portions of these buildings. The target population affected by this policy includes businesses and individuals involved in such leasing arrangements, particularly those working in or managing these enterprises.
- The policy's requirement for foreign ownership disclosure might affect foreign businesses that are leasing or intending to lease these large federal properties.
- Considering the budget of $10,000,000 USD in the first year and $73,000,000 USD over ten years, the policy will have a moderate impact on the people involved in these leases. It primarily affects administrative and operational aspects, though it may also have indirect effects on tenant businesses.
- Given the size and scope of buildings targeted (at least 150,000 gross square feet), the policy's impact will be concentrated among larger businesses and operations that meet these criteria.
Simulated Interviews
Building Manager (Washington D.C.)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- I work closely with the GSA and see these changes as necessary for transparency.
- The new standard clauses should streamline future lease negotiations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Corporate Real Estate Lawyer (New York, NY)
Age: 52 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- This policy could complicate lease negotiations with foreign-invested entities.
- There may be a slight increase in legal work due to the new requirements.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Foreign Business Executive (Los Angeles, CA)
Age: 38 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- The disclosure requirement is concerning; it adds complexity to our plans.
- We might reconsider our expansion within federal sites.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 6 |
| Year 10 | 6 | 7 |
| Year 20 | 6 | 7 |
GSA Employee (Denver, CO)
Age: 29 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 10/20
Statement of Opinion:
- The policy will require adjustments in our administration, but it's manageable.
- It's a step towards ensuring transparency and fair practices.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
CEO, Large Construction Firm (Chicago, IL)
Age: 60 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- The changes might cause delays in lease renewals.
- Overall, our operations would adapt to meet these requirements.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 7 |
Non-Profit Director (Atlanta, GA)
Age: 33 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- I worry about potential rent increases or changes to our lease terms due to the new clauses.
- Our operations depend on stable leasing agreements.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Government Policy Analyst (Austin, TX)
Age: 41 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 9/20
Statement of Opinion:
- The policy introduction seems logical, promoting better lease arrangements.
- Monitoring the disclosure requirements will be vital.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Real Estate Investor (San Francisco, CA)
Age: 50 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 8.0 years
Commonness: 3/20
Statement of Opinion:
- The policy might deter some foreign investors, which is concerning.
- I expect additional due diligence requirements for new leases.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Entrepreneur (Miami, FL)
Age: 39 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 4.0 years
Commonness: 6/20
Statement of Opinion:
- It's important to have clear guidelines; the new policy provides that.
- I welcome the transparency, but it could delay negotiations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Federal Building Maintenance Supervisor (Seattle, WA)
Age: 46 | Gender: other
Wellbeing Before Policy: 8
Duration of Impact: 3.0 years
Commonness: 5/20
Statement of Opinion:
- The policy could improve coordination with lessees, ensuring better compliance.
- I'm hopeful it will lead to fewer disputes over lease terms.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 9 | 8 |
Cost Estimates
Year 1: $10000000 (Low: $8000000, High: $15000000)
Year 2: $8000000 (Low: $6000000, High: $12000000)
Year 3: $8000000 (Low: $6000000, High: $12000000)
Year 5: $8000000 (Low: $6000000, High: $12000000)
Year 10: $5000000 (Low: $4000000, High: $10000000)
Year 100: $3000000 (Low: $2000000, High: $7000000)
Key Considerations
- The requirement for foreign ownership disclosure could dissuade some foreign entities from leasing federal buildings, impacting leasing revenue.
- Implementation costs may be front-loaded, with higher expenses anticipated in the initial years as systems are updated and processes are revised.
- Long-term savings are contingent on streamlined processes and reduced administrative burdens via standardization efforts.