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Government Real Property Leasing

The federal government leases more real property from private sector landlords than any other tenant in the United States, including hundreds of millions of square feet in downtown and suburban office buildings, warehouses and other properties.  One agency alone leases more than $5 billion worth of real property per year.  State and local governments also lease millions of square feet of real property. Miles & Stockbridge lawyers help clients nationwide win and keep lucrative government tenants, loan and borrow money based on government lease receivables, and buy and sell buildings with government tenants.

Interacting with federal, state and local government tenants can be daunting because many times these tenants will not agree to standard commercial terms, make decisions in bureaucratic ways and have different objectives and constraints than private sector tenants.  We serve our clients by taking the mystery, frustration and delay out of dealing with government tenants.  We translate “government speak” into information on which businesses can act and profit, and help companies avoid or mitigate some of the dangerous economic and legal terms in government lease documents.

Drawing on long experience, we “speak the language” and understand the perspectives of government tenants, as well as private sector landlords.  We bring to the table an in-depth familiarity with lease, purchase and sale negotiations, the ability to focus on important terms and the perspective to get the job done.  We also provide our clients with a wealth of experience about how to avoid pitfalls that can drain and delay profits.

Among other matters, we have provided legal advice to help clients efficiently:

  • Identify government real estate opportunities and complete the preliminary groundwork to compete for them
  • Evaluate government solicitations for legal and related economic risks
  • Submit winning offers to numerous government agencies
  • Obtain non-competitive awards, succeeding leases, and extension leases
  • Avoid government “holdover” situations
  • Conduct due diligence relating to properties with government tenants
  • Purchase and sell properties with government tenants
  • Follow up after purchases and sales to get government agency tenants to recognize and pay their new landlords
  • Borrow and lend funds partly or wholly to finance government leases and improvements
  • Comply with special government lease requirements
  • Collect past-due funds from federal agencies and address government non-compliance with lease terms
  • Adopt policies and procedures to promote performance, collection of accounts receivable and compliance in government real estate transactions
  • Amend government leases to facilitate construction projects, expansions, space reductions, alterations, addition or subtraction of services, and many other matters