ARCO Federal Leasing Advisors

Is my renewal clause actually a renewal, or just a renewal-shaped object?

The honest answer: it depends on what’s actually in the lease, and the answer surprises a lot of landlords.

What happens to my CPI escalations if the GSA forgets to trigger them?

The GSA missing a CPI (Consumer Price Index) escalation is genuinely rare, but it does happen…and when it does, the responsibility for catching it sits on your side of the table, not theirs. The mechanism itself is straightforward enough on paper. CPI adjustments are scheduled within your lease, and when one is triggered, your rent steps up by the corresponding amount.

My agency tenant is asking me to give back square footage. Do I have to?

It depends on when in the lease term the request is being made, and what the lease itself says about it.

How do I tell if my federal tenant is quietly preparing to leave?

Agencies rarely send a clear signal that they’re planning to exit a building. The earlier indications are usually quieter and easier to read in the way the space is being used than in anything the agency formally communicates. The most useful signal to watch is utilization.

What is the role of the GSA Form 1217?

Before I dive into the meat of the discussion, it is important to quickly describe the role the GSA Form 1217 plays in the GSA leasing process. The Form 1217 is separated into two sections: Section 1: Estimated Annual Cost Of Services And Utilities Furnished By Lessor As Part Of Rental Consideration.