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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