Local landlords paid out more than $18.7M through GSA broker contracts
June 16, 2014

The General Services Administration hasn't realized the lofty goals it set for itself by outsourcing much of its commercial real estate leasing, but that hasn't kept D.C.-area brokers from making millions for their part in the National Broker Contract program.

Washington-area landlords paid $18.8 million in commissions in the four-year period ended Sept. 30, 2013, about half the $40 million landlords paid to brokers across the country during that same period.

The GSA disclosed that and other figures in response to a Freedom of Information Act request I made for my May 2 cover story on the program. The story found that, nearly a decade after establishing the NBC, the GSA can't say whether the federal leases secured by brokers were any more financially beneficial to the government than those negotiated by in-house GSA staffers. The GSA is preparing to issue a request for the third round of the program later this year.

Four companies — DTZ Americas Inc., CBRE Group Inc., JLL and Savills Studley — hold the current National Broker Contract. The GSA did not break down the commissions paid to each company.

Local landlords paid out more than $18.7M through GSA broker contracts

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