Governmentwide Real Property

Performance

Results

Private Sector

Performance

Building Profiles

U.S. General

Services

Administration

Office of

Governmentwide

Policy

Amor Patriae

Ducit

Building Profiles

Private Sector

Performance

Governmentwide

Baseline

Governmentwide

Baseline

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This publication last updated December 1998

http://policyworks.gov/realproperty
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U.S. General Services Administration

Office of Governmentwide Policy

Office of Real Property

Evaluation and Innovative Workplaces Division

December 1998

i

Governmentwide Real Property

Performance

Results
ii
Foreword T

he Office of Governmentwide

Policy is pleased to issue

Governmentwide Real

Property Performance Results. We

issued the Governmentwide Real

Property Performance Measurement

Study in June 1998. That study

derived 7 key indicators of real

property performance, proposed a

voluntary benchmarking effort to

estimate them, and set the stage for

the premier edition of Performance

Results. This publication provides

baseline estimates of Federal real

property performance, includes

private sector benchmark data for

comparative purposes, and

highlights representative facilities

from the diverse Federal office

building inventory. We plan to build

and expand on this effort with future

editions of Performance Results.

I would like to recognize David Bibb

whose Office of Real Property

undertook this research effort. With

the guidance of Marjorie Lomax

from the Evaluation and Innovative Workplaces Division and under 

the direction of team leader 

Stan Kaczmarczyk, the project team

of Chris Coneeney, Shirley Morris,

Rebekah Pearson and Ron Whitley

produced this initial real property

iii

performance assessment.

Additionally, we would like to recognize the contributors from the

Federal real property community,

without whom this analysis would

not have been possible.

The Office of Governmentwide

Policy presents this information to

the Federal real property community

with the hope that it leads to more

informed decision-making and

improved asset management.

Organizations throughout the world

in both the private and public sectors

have made performance

measurement, benchmarking and

strategic planning part of their

cultures. We want to lead the

Federal real property community

down this same path, consistent with

the recommendations and

expectations of the National

Partnership for Reinventing

Government and the Government

Performance and Results Act of 1993.

G. Martin Wagner

Associate Administrator

Office of Governmentwide Policy

U.S. General Services Administration
iv
Table of Contents

Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Governmentwide Baseline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Summary of Results. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Cost per square foot (owned) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Vacancy rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Cost per square foot (leased). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Cost per person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Customer satisfaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Employees housed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Total square feet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Acknowledgments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Private Sector Performance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Role of the Logistics Management Institute . . . . . . . . . . . . . . . . . . . . . 15

Private Sector Performance Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Building Profiles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Observations and Recommendations . . . . . . . . . . . . . . . . . . . . . . . 51

Observations from the Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

Quality of the Data. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

Recommendations and Next Steps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

v
vi

Private Sector

Performance

Building Pr Building Profiles ofiles

Private Sector

Performance

Governmentwide

Baseline

Governmentwide

Baseline

http://policyworks.gov/realproperty
T

he following table summarizes

Governmentwide performance on the 7 key indicators,

as estimated by our analysis of the

sample data:

1

Executive Summary

Measure Federal Government Baseline

Cost per square foot (owned) $4.36 per rentable square foot

Vacancy rate 9.3 percent

Cost per square foot (leased) $20.16 per rentable square foot

Cost per person $10 to $12 thousand per person

Customer satisfaction 74 to 80 percent satisfaction

Employees housed 1,837,000 FTE

Total square feet 629,550,000 rentable square feet 

of office space

We conclude that Governmentwide

performance:

• Tends towards the lower end of

the private sector range of

performance on cost per square

foot (owned);

• Is comparable on cost per person

and customer satisfaction; and

• Tends towards the higher end of

the private sector range for cost

per square foot (leased) and

vacancy rate.

We were pleased at the extent of

non-General Services Administration

(GSA) participation in the

benchmarking project. Over 

31 percent of the sample consists of

facilities controlled by agencies other

than GSA.
2

Private Sector

Performance

Building Pr Building Profiles ofiles

Private Sector

Performance

Governmentwide

Baseline

Governmentwide

Baseline

http://policyworks.gov/realproperty
In this section of Performance Results,

we summarize the results of our first

ever attempt to collect Federal real

property performance data. Since it

is important to establish a baseline,

we did not allow gaps in the data,

interpretation problems, or less-thanoptimal participation to deter us

from presenting results. Despite the

shortcomings, the information in this

section is reasonably accurate and

represents a giant leap forward for

Federal real property performance

measurement. We believe that this

information will be useful for

Federal real property professionals

and that it will contribute to more

comprehensive strategic planning

and improved asset management

decisions.

These 7 key indicators are broad and

cover office space only. We chose to

limit the initial effort since a complex

effort with many measures would

never have gotten off the ground.

We hope to expand the depth and

scope of our Governmentwide

performance measurement efforts in

future editions.

Background

In August 1997, the Office of Real

Property began its performance

measurement initiative. Although

GSA is known as the “Government’s

landlord,” it controls only

approximately 40 percent of the

Federal office space inventory (and

only 10 percent of total Federal

space). While GSA’s Public

Buildings Service (PBS) compiles

data on GSA facilities, our challenge

was to measure real property

performance on a Governmentwide

basis.

We formed an interagency working

group in order to obtain broader

input and buy-in. We also held an

agency meeting for comments on our

draft study. The process we

followed to derive the 7 key

indicators of real property

performance is described in the

Governmentwide Real Property

Performance Measurement Study,

released in June 1998. That

publication also called for voluntary

data submission from Federal

agencies to support the

establishment of the baseline

measures for the key indicators. We

discuss the challenges and

shortcomings of the data collection

process in a later section.

3

Governmentwide

Baseline
Summary of Results

4

Measure Federal Government Baseline

Cost per square foot (owned) $4.36 per rentable square foot

Vacancy rate 9.3%

Cost per square foot (leased) $20.16 per rentable square foot

Cost per person $10 to $12 thousand per person

Customer satisfaction 74 to 80 percent satisfaction

Employees housed 1,837,000 FTE

Total square feet 629,550,000 rentable square feet 

of office space

Cost Per Square

Foot (Owned)

Definition

The cost per square foot (owned) is

the total cost for cleaning,

maintenance, and utilities for the

facility divided by the rentable

square feet. The cost is expressed in

fiscal year 1998 dollars. The

component costs of the cost per

rentable square foot (owned)

measure are defined as follows:

Cleaning

Includes labor costs for in-house and

contract service, payroll, taxes, and

fringe benefits, plus salaried

supervisors and managers, as well as

expenses related to routine

equipment and supplies required for

daytime and nighttime cleaning of

offices, elevators, public areas, rest

rooms and windows. Also includes

the costs of specialized cleaning

services such as trash removal,

recycling, window washing, and

carpet cleaning plus the costs of

roads and groundskeeping services.

Maintenance

Includes all expenses required for

general repairs, maintenance, and

upkeep of the facility. Labor costs

include payroll, taxes, and fringe
Government-owned office space

inventory.

Data Concerns

Some agencies submitted only the

total cost for each facility, as they do

not track the component costs. One

agency submitted its total agencyowned inventory and the cleaning,

maintenance, and utility costs for the

entire inventory. The agency was

unable to break down the costs for

each facility.

Certain agencies submitted their

data in either gross square feet or

usable square feet. The measures in

this report are all in rentable square

feet. We used conversion factors of

10 percent to reduce the gross square

feet to rentable and 15 percent to

increase the usable square feet to rentable. While this conversion may

not yield the exact size of the Federal

inventory, the project team

determined it was important to use a

standard set of units for this

measurement effort.

Agencies also reported their data in

various fiscal years. The project

team escalated all costs to fiscal year

1998 dollars at a rate of 2.3 percent

per fiscal year to ensure an accurate

comparison between facilities.

Some agencies submitted data for

buildings that are part of a larger

benefits for employees and

contracted workers (operating

engineers, general maintenance

personnel, and chief building

engineers). Repairs and

maintenance items include elevators;

heating, ventilation, and air

conditioning; electrical;

structural/roof; plumbing; and fire

and life safety systems as well as

maintenance supplies.

Utilities

Includes the cost of all utilities

(electricity, gas, oil, purchased steam

and hot water) used by the facility

and its occupants. We requested that agencies submit

the cleaning, maintenance, and

utility cost for each facility. If

agencies were unable to track the 

3 component costs separately, they

were asked to submit the total cost

for the Government-owned facility.

Baseline Measure

The baseline measure for cost per

square foot (owned) is $4.36 per rentable square foot. We derived

this measure from the total cleaning,

maintenance, and utility cost for

131,991,414 rentable square feet of

owned office space in the

Governmentwide sample. This

square footage represents

approximately 26 percent of the

5
unit, such as an administration

building in a Government lab

complex or a military installation.

The agencies were unable to separate

the component costs for the office

space facilities from the rest of the

complex. The agencies submitted

just the square footage for the office

space facility. We omitted these

facilities from the sample

determining the cost per square foot

(owned), but we used them in

developing the baseline vacancy

rate. Vacancy Rate

Definition

The vacancy rate is the percentage of

building area not occupied or obligated compared to total building area.

Baseline Measure

The baseline measure for vacancy

rate is 9.3 percent. We derived this

measure from a total of 179,909,249 rentable square feet of owned and

leased office space in the

Governmentwide sample. This

square footage represents

approximately 29 percent of the total

office space inventory.

Data Concerns

Certain agencies submitted their

data in either gross square feet or

usable square feet. The measures in

this report are all in rentable square

feet. We used conversion factors of

10 percent to reduce the gross square

feet to rentable and 15 percent to

increase the usable square feet to rentable. While this conversion may

not yield the exact size of the Federal

inventory, the project team

determined it was important to use a

standard set of units for this

measurement effort.

The total inventory for developing

the vacancy rate exceeds the sum of

the inventory used to develop

estimates for cost per square foot

(owned) and cost per square foot

(leased). For certain facilities,

agencies were unable to submit cost

data. We omitted these facilities

from the sample determining the

two cost per square foot measures,

but we used them in developing the

baseline vacancy rate.

Agencies reported vacant square feet

in several different forms. Most

agencies submitted the vacant space

for each facility they submitted. One

agency submitted the total vacant

square feet, not broken out by

building. Other agencies submitted

an agency-wide vacancy rate. We

derived the total amount of vacant

square feet by applying the vacancy

rate percentage to the total square

6
rentable. While this conversion may

not yield the exact size of the Federal

inventory, the project team

determined it was important to use a

standard set of units for this

measurement effort.

Agencies also reported their data in

various fiscal years. The project

team escalated all costs to fiscal year

1998 dollars at a rate of 2.3 percent

per fiscal year to ensure an accurate

comparison between facilities.

Some agencies submitted data for

buildings that are part of a larger

unit, such as an administration

building in a Government lab

complex or a military installation.

The agencies were unable to separate

the component costs for the office

space facilities from the rest of the

complex. The agencies submitted

just the square footage for the office

space facility. We omitted these

facilities from the sample

determining the cost per square foot

(leased), but we used them in

developing the baseline vacancy

rate.

Cost Per Person

In September 1997, the Office of Real

Property published the Office Space

Use Review. That publication

featured benchmark data on space

utilization rates as well as a review

footage submitted. Then the amount

of vacant space could be combined

with other agencies to determine a

Governmentwide vacancy rate.

Cost Per Square

Foot (Leased)

Definition

The cost per square foot (leased) is

the fully serviced rental rate. The

cost per rentable square foot is

expressed in fiscal year 1998 dollars.

Baseline Measure

The baseline measure for cost per

square foot (leased) is $20.16 per rentable square foot. We derived

this measure from the fully serviced rental cost for 39,750,782 rentable

square feet of leased office space in

the Governmentwide sample. This

square footage represents

approximately 35 percent of the

Government-leased office space

inventory.

Data Concerns

Certain agencies submitted their

data in either gross square feet or

usable square feet. The measures in

this report are all in rentable square

feet. We used a conversion factor of

10 percent to reduce the gross square

feet to rentable and 15 percent to

increase the usable square feet to

7
of emerging trends and best

practices in space management. The

latter discussion included a review

of various alternative work

environments and their impact on

the traditional office. The Office

Space Use Review argued for a more

sophisticated approach to measuring

space efficiency, one that went

beyond simply tracking a traditional

office space utilization rate. We

advocated looking at cost-based

measures as well. Since people are

working in a variety of ways and

places in addition to the traditional

office building, we suggested that

total cost per person might be a

more relevant indicator.

Cost per person became one of our 

7 key indicators of Governmentwide real property performance. We did

not precisely define this indicator in

the June 1998 Governmentwide Real

Property Performance Measurement

Study. Based on cost per person

metrics compiled by AT&T and IBM

(as discussed in “The Alternative Workplace,” Harvard Business Review,

May-June 1998), as well as other research, we propose the following

working definition of this key

performance measure:

Cost per person is, in annual dollar

expenditure per person, the sum of: • Real estate (occupancy) costs • Telecommunications costs • Information technology costs

(Note that the definition as

stated only applies to the numerator

of the cost per person metric. We

need to define the denominator in

the context of full versus part time,

permanent versus temporary,

salaried versus contracted,

traditional office versus offsite, etc.)

Since we did not finalize this

definition earlier, we did not request

cost per person data as part of our

voluntary benchmarking effort in

support of this baseline edition of

Governmentwide Real Property

Performance Results. In order to

establish this indicator as a useful

metric for management decisions,

we propose to lead a formal

benchmarking project beginning in

early 1999. Ideally, we would like to

have at least 6 organizations (major

corporations, Federal agencies, other

governments) come together to

precisely define the metric, gather

data, and review results. The

participating organizations will

share information among

themselves. We will release a

generalized set of results that

8
an organizational unit of GSA to

estimate cost per person, based on

the Federal Operations Review

Model (FORM) analysis GSA

conducted with the assistance of

Arthur Andersen. Again, the result

may not correspond exactly with the

definitions used by IBM and AT&T.

However, it is useful to look at the

numbers to get a sense of the general

scope of what we are talking about.

In the interest of starting the cost per

person discussion, and with the

above caveats about data

comparability, we summarize this

information in the below table.

preserves the confidentiality of the

participants for a wider audience.

We will formally invite selected

organizations to participate in this

benchmarking effort. Interested

organizations may sign up to

participate by contacting 

Stan Kaczmarczyk at (202) 501-2306

or stan.kaczmarczyk@gsa.gov

A major advantage of a formal

benchmarking project is

comparability of data. For example,

it is not clear from the Harvard

Business Review article that IBM and

AT&T define cost per person exactly

alike. We performed an analysis on

9

Organization Data Basis Cost Per Person

GSA organizational unit 1994 $11,800

IBM 1994 $14,300

IBM 1995 $11,900

IBM 1996 $9,700

IBM 1997 $9,000

AT&T - traditional office 1998 Benchmark $12,000

AT&T - shared office 1998 Benchmark $7,500

AT&T - virtual office 1998 Benchmark $5,000
The preceding table suggests two

important reasons why the cost per

person indicator is one that we

should track and benchmark: • The IBM numbers suggest that

paying attention to this cost can

lower it and result in savings.

• The AT&T benchmarks imply

that non-traditional work

environments, in addition to

providing flexibility and

increasing employee satisfaction

and productivity, may actually

save money.

Establishing a cost per person range

for the Governmentwide baseline on

such sketchy information highlights

the importance of the benchmarking

project discussed above. There is

plenty of available data on cost per

square foot but precious little on cost

per person. Based on the above

table we estimate the current

baseline for cost per person to be in

the range of $10,000 to $12,000 per

person.

Customer

Satisfaction

The team developed a baseline for

this measure using the GSA, Public

Buildings Service (PBS) customer

satisfaction survey. PBS conducts

the survey annually and covers the

entire GSA inventory over the course

of 2 years. An independent

contractor groups, tabulates, and reports the results to PBS. The PBS

survey was the subject of the Federal

Diary column in the Washington Post

and an article in the Real Estate

Journal, both dated September 3, 1998. We based the 1998 baseline largely on

the results of PBS’s 1997 survey.

According to PBS, 6 other agencies

have conducted surveys of their own real property management and

operations since 1994. Hopefully, by

1999 use of the survey will be

prevalent and consistent enough for

us to include hard data from other

agencies in our Governmentwide

customer satisfaction results.

In 1997, PBS surveyed 2,300 buildings

housing approximately 296,200 Federal

tenants. This represented about onehalf of GSA’s Government-owned and

leased inventory. The survey consisted

of 65 questions covering categories

such as building and office environment, building services, procedures for requesting services, security, and

management staff. Based on 65,000 responses (out of 186,000 surveys

distributed - a 35 percent response

rate), customer satisfaction with PBS

services scored 80 percent nationally.

10
• Accommodation of unique

requirements

• Flexibility of procedures for

obtaining services

• Follow-up communication

• Timeliness of response by the

Building Management staff

• Availability

• Reliability

• Quality of maintenance

Federal agencies are not the only

organizations using the PBS survey

to measure customer satisfaction.

The Building Owners and Managers

Association (BOMA) International,

In August 1998, GSA submitted

surveys to Federal employees that

work in more than 3,500 buildings

owned and leased by GSA. This is

the completion of the survey program

that began in fiscal year 1997 and

covers the remaining GSA buildings

and facilities eligible for the program.

The results of this survey will be

available sometime in early 1999 and

can be obtained from Peter Ford of

PBS, whose telephone number is

(202) 501-0514 (or e-mail to

peter.ford@gsa.gov). 

Mr. Ford is also available to assist

agencies that are interested in

administering their own survey

program.

Since 1993, when the survey program

officially began, overall customer

satisfaction with PBS -- provided

building services has steadily risen,

as indicated in the chart to the right.

As a result of its survey program,

PBS has determined that the

following are principle drivers of

customer satisfaction:

• Ease of doing business with

regard to procedures for

obtaining services

• Effectiveness of communication

• Understanding of customer

needs by the Building

Management staff

11

Customer Satisfaction with 

GSA Provided Building Services

(Percentage level)

84

80

76

72

68

1993 1994 1995 1996 1997 1998 (Goal)

74 74 75

77

80

85
an international representative for

owners and operators of commercial real estate, has adopted PBS’s survey

instrument for use by its

membership. In addition, the

International Facility Management

Association (IFMA) uses a survey

instrument with a similar structure. We hope in the future that all

Federal agencies will either adopt

the PBS survey instrument, or

conduct similar surveys using other

instruments. In either case, each

agency that conducts a customer

satisfaction survey, and makes that

information available, contributes to

our effort to measure customer

satisfaction on a Governmentwide

basis.

Based on the limited data as

discussed above, the team estimates

the current baseline for this

indicator to be in the range of 74 to

80 percent (as measured by the PBS

survey). This range reflects PBS

customer satisfaction scores over the

past several years and assumes

similar results for the same period in

other agency buildings nationwide.

Employees 

Housed

Definition

The employees housed measure is

the total civilian full time equivalents

(FTE). The definition of FTE from

the Office of Management and

Budget is: • One FTE is equal to one work

year or 2,080 hours. The FTE

takes into account part-time

employment, temporary

employment, and vacancies

during the year. For example,

one full-time employee and 

2 half-time employees would

count as 2 FTE but 3 positions.

The source of information is the

Administration’s Budget for Fiscal Year 1999.

Baseline Measure

The baseline measure for employees

housed is 1,837,000 civilian FTE.

This figure is an estimate for fiscal

year 1998.

Data Concerns

The project team realizes that the

FTE is not an exact account of the

number of people housed in Federal

space. We present this to indicate

the scope of the number of people

that may use Federal space. The

12
definition of FTE excludes

contractors. These people, though

not included in the FTE figure, are

housed in Federal space to some

extent.

Total Square Feet

Definition

The total square feet measure is the

total rentable square footage for the

Federal domestic inventory. We

obtained this information from the

Worldwide Inventory Summaries for

end of fiscal year 1997.

Baseline Measure

The baseline measure for total

square feet is 629,550,000 rentable

square feet of office space. The chart

below shows the amount of office

space and total space in the fiscal

year 1997 Federal Worldwide

Inventory categorized into owned

and leased space (expressed in

rentable square feet).

Data Concerns

Agencies report data for the

Worldwide Inventory Summaries in

gross square feet. The measures in

this report are all expressed in

rentable square feet. We used a

conversion factor of 10 percent to

reduce the gross square feet to

rentable. While this conversion may

13

not yield the exact size of the Federal

inventory, the project team

determined it was important to use a

standard set of units for this

measurement effort.

Acknowledgments

We would like to thank the

following agencies for participating

in the voluntary benchmarking effort

that made this analysis possible:

• Department of Agriculture

• Department of the Army

• Department of Commerce

• Department of Energy

• Department of the Interior

• Department of Veterans Affairs

• GSA Public Buildings Service

• Office of Personnel Management

Federal Inventory

Total Federal

Office Space Space

Owned . . . . . . . . . . . . . . . . . . . . . . . . . 516,150,000 . . . . . . . 2,672,726,347

Leased . . . . . . . . . . . . . . . . . . . . . . . . . 113,400,000 . . . . . . . . . 248,051,996

TOTAL. . . . . . . . . . . . . . . . . . . . . . 629,550,000 . . . . . . . 2,920,778,343
14

Private Sector

Performance

Building Pr Building Profiles ofiles

Private Sector

Performance

Governmentwide

Baseline

Governmentwide

Baseline

http://policyworks.gov/realproperty
The purpose of this section is not to

suggest that the Government’s real

property performance exceeds or

falls short of the private sector’s

performance. Undoubtedly, some readers will be tempted to draw

these simplistic comparisons since

we are presenting Government and

private sector data for the same

indicators between one set of covers. We can only stress that the

information in this section is

presented for the same reason as the

Government data - for the use of

individual Federal landholding

agencies in the strategic planning

and asset management decisionmaking processes.

Role of the Logistics

Management

Institute To provide a context for the

estimated Governmentwide baseline,

we contracted with the Logistics

Management Institute (LMI) to

provide private sector performance

data on the 7 key performance

measures. LMI is a nonprofit

organization that has provided

management and business

improvement services to Federal

agencies for approximately 35 years.

During the past year, LMI has

worked with PBS on GSA’s real

Introduction

Since there are real and considerable

benefits inherent in setting

performance goals based on

comparative benchmarks, the

temptation is to rush into setting

targets and deriving “magic

numbers” for optimal performance.

Even if that was the goal of

Governmentwide Real Property

Performance Results, we believe that it

would take between 3 and 5 years to

establish a reliable and

comprehensive real property

performance measurement system

covering the geographically and

functionally diverse portfolios of

individually managed Federal

agencies.

Our goal is to provide reasonably

accurate information that Federal real property professionals can use

now for strategic planning and asset

management purposes. Each

Federal landholding agency must

decide for itself how its performance

rates and which areas need

improvement. The preceding

Governmentwide Baseline section

will give Federal readers an idea of

where they stand among their peers.

This section provides comparable

information from private sector

sources.

15

Private Sector

Performance
property performance measurement

for business areas such as leasing,

construction, operations and

security.

The private sector data comes

primarily from 3 documented

sources: • Building Owners and Managers

Association (BOMA)

International, Experience

Exchange Report (EER)

• Institute of Real Estate

Management (IREM) Office

Buildings Income/Expense

Analysis

• International Facility

Management Association

(IFMA), Research Report #18

Benchmarks III.

Additionally, LMI used data from

the Society of Industrial and Office

Realtors (SIOR) to provide

information on vacancy rate and cost

per square foot (leased), and

proprietary corporate data for total

square feet, employees housed, and

customer satisfaction.

Private Sector

Performance Data

The “thermometer” charts in this

section graphically display

performance data and show a range

of desired performance for each

measure. This format allows

flexibility in making comparisons.

Even though organizations with

different missions and structures

perform similar processes and

functions, rarely is there a perfect

match during the comparison

process. Differences normally occur

in the work scope and the level of

service provided. For this reason the

range is a more realistic

measurement and helps compensate

for the differences.

The charts present data formatted

around the mean value of the

sample. The middle ground

provides an accurate picture of what

a comparable sample for a similar

group might be for the same

function or service.

LMI relied to the extent possible on

the definitions that we provided in

the June 1998 Governmentwide Real

Property Performance Measurement

Study. The following series of charts

summarizes the LMI private sector research.

16
17

Figure 1.

Cost per Square Foot (Owned)

Industry Benchmarks

Est. 98 BOMA Range: $3.15 -- $4.91

Buildings: 2,922

Rentable Square Feet: 527.1M

Est. 98 IREM Range: $3.38 -- $5.51

Buildings: 493

Rentable Square Feet: 133.1M

Est. 98 IFMA Range: $3.38 -- $6.43

Buildings: 280

Rentable Square Feet: 80.7M

< $6.08 - IFMA Mean

< $4.76 - IREM Mean

< $4.51 - BOMA Mean

$6.30

5.40

4.50

3.60

2.70

1.80

0.90

0.00

BOMA Range

IREM Range

IFMA Range

Note: 

• Est. 98 BOMA/IREM based on 97 data escalated by 2.3% CPI.

• Est. 98 IFMA based on 96 data escalated by 3.0% and 2.3% CPI.

• Dollars based on rentable sq. ft.
18

Figure 2

Vacancy Rate

Industry Benchmarks

BOMA Range: 4.5% - 12.5%

Buildings: 2,922

Rentable Square Feet: 527.1M

SIOR Range: 4.9% - 10%

Rentable Square Feet: 951.1M

< 9.2% - BOMA Mean

< 7.8% - SIOR Mean

14.0%

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0%

BOMA Range

SIOR Range

Note:

• Based on 97 data.
19

Figure 3.

Cost per Square Foot (Leased)

< $19.14 - BOMA Mean

< $17.34 - IREM Mean

< $13.52 - SIOR Mean

BOMA Range

IREM Range

SIOR Range

Industry Benchmarks

Est. 98 BOMA Range (Downtown):

$11.77 -- $19.56

Buildings: 2,922

Rentable Square Feet: 527.1M

Est. 98 SIOR Range (CBD / Class A/B):

$10.23 -- $23.53

Rentable Square Feet: 951.1M

Est. 98 IREM Range (Downtown):

$11.25 -- $20.23

Buildings: 475

Rentable Square Feet: 127.5M

$28.00

24.00

20.00

16.00

12.00

8.00

4.00

0.00

Note: 

• Est. 98 based on actual 97 data escalated by 2.3% CPI.

• Dollars based on rentable sq. ft.
20

Figure 4

Cost per Person (Owned Space)

$2,133 - BOMA Mean

$4,639 - IFMA Mean

BOMA Range

IFMA Range

$7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

Industry Benchmarks

Est. 98 BOMA Range: $1,724 - $2,501

Buildings: 2,922

Rentable Square Feet: 527.1M

Est. 98 IFMA Range: $2,625 -- $6,524

Buildings: 239

Rentable Square Feet: 68.8M

Note: 

• Est. 98 for BOMA based on 97 data escalated by

2.3% CPI.

• Est. 98 for IFMA based on 96 data escalated by

3.0% and 2.3% CPI

• Dollars based on rentable sq. ft.

• Dollars exclude information technology (IT) and

telecommunications

The contractor was unable to provide private sector

data that included IT and telecommunications costs,

as defined in the Governmentwide measure. This

chart represents real estate costs per person if all

facilities are owned.
21

Figure 5

Cost per Person (Leased Space)

< $7,571 - IFMA Mean

< $4,751 - BOMA Mean

$14,000

12,000

10,000

8,000

6,000

4,000

2,000

0

BOMA Range

IFMA Range

Industry Benchmarks

Est. 98 BOMA Range: $3,319 - $5,511

Buildings: 2,922

Rentable Square Feet: 527.1M

Est. 98 IFMA Range: $4,309 -- $10,154

Buildings: 239

Rentable Square Feet: 68.8M

Note: 

• Est. 98 BOMA based on 97 data escalated by

2.3% CPI.

• Est. 98 IFMA based on 96 data escalated by 3.0%

and 2.3% CPI.

• Dollars based on rentable sq. ft.

• Dollars exclude information technology (IT) and

telecommunications

The contractor was unable to provide private sector

data that included IT and telecommunications costs,

as defined in the Governmentwide measure. This

chart represents real estate costs per person if all

facilities are leased.
22

Figure 6

Customer Satisfaction

Industry Benchmarks

Survey 1 Range: 90% - 95%

Buildings: 115 (5 organizations)

Office space

Survey 2 Range: 84.5% - 90.5%

Gross Square Feet: 61.6M

Mixed space

Survey 3 Range: 84% - 90%

Gross Square Feet: 29.9M

Mixed space

< 91.0% - Survey 1

< 87.5% - Survey 2

< 85.5% - Survey 3

Survey 1 Range

Survey 2 Range

Survey 3 Range

100%

97%

94%

91%

88%

85%

82%

79%

Note:

Similar to GSA/PBS survey 

(cleaning, maintenance,

grounds, security and

management

responsiveness).

The scores are based on 3 industry

surveys comprising 7 private sector

organizations and should not be

viewed as representing the overall

industry of office buildings. The

relatively high scores are attributed

to two major factors. First, these

organizations have conducted

surveys since 1990, and have

benefited from the timely implementation of changes and enhancements

to their building services as

identified by tenants. Secondly, the

class and type of space occupied,

type of work performed, management priorities, newness of the

buildings, and geographical location

of the building influence the scores.
23

Figure 7

Trend in Total Square Feet in 

Relation to Employees Housed

Year GSF Employees

1997 . . . . . . . . . . . . . . . . . . . . 104,000,000 . . . . . . . . . . . . . . . . . . . . . . . . 250,000

1996 . . . . . . . . . . . . . . . . . . . . 105,000,000 . . . . . . . . . . . . . . . . . . . . . . . . 241,000

1995 . . . . . . . . . . . . . . . . . . . . 106,000,000 . . . . . . . . . . . . . . . . . . . . . . . . 225,000

1994 . . . . . . . . . . . . . . . . . . . . 118,000,000 . . . . . . . . . . . . . . . . . . . . . . . . 220,000

Source: 

The example is a Fortune 500 technology firm with a real

property portfolio of more than 2,000 buildings

worldwide.
24

Private Sector

Performance

Building Pr Building Profiles ofiles

Private Sector

Performance

Governmentwide

Baseline

Governmentwide

Baseline

http://policyworks.gov/realproperty
Introduction

In a publication devoted to graphs,

tables and statistical data, there is

always the danger of losing track of

the reality behind the numbers. The

following representative sampling of

Federal office facilities complements

the preceding analysis by keeping us

focused on our purpose. While we

all strive to manage our real

property assets efficiently and

effectively, and to balance

maximizing value with

socioeconomic considerations, our

primary goal is to provide quality

facilities and working environments

for Federal employees.

Although we limited this initial data

collection effort to “generic” office

space, the term hardly begins to

describe the diverse missions of

Federal agencies and the facilities

that support them. We selected the

following profiles (that begin on the

next page) from among the many

Federal facilities comprising our

sample. We included owned and

leased facilities, GSA and agencycontrolled space, and locations from

all regions of the country.

25

Building 

Profiles
Total Rentable Square Feet:

430,976

Major Occupants: 

• Internal Revenue Service

• Department of Veterans Affairs

• U.S. Customs

• Social Security Administration

Building Type:

Government-owned

Building Owner: 

General Services Administration

Building Operator: 

General Services Administration

Age: 

Approximately 29 years

26

Thaddeus J. Dulski Federal Building

111 West Huron Street

Buffalo, NY

Highlights:

The Dulski Federal Building is 

16 stories high and is the second

largest building in Buffalo. The

building sits in the hub of the

Federal community, surrounded by

many leased buildings, the U.S.

Courts and other Federal facilities.

A George Segal historic sculpture -

“The Restaurant” - graces the 

exterior entrance of the building.

The building’s design gives every

tenant an outstanding view of Lake

Erie or the city of Buffalo.

The building honors Thaddeus

Joseph Dulski, who was born in

Buffalo on September 27, 1915, and

served as a U.S. Representative from

New York from 1959 to 1974.
Age:

Approximately 69 years

Total Rentable Square Feet: 

947,172

Major Occupants:

• Department of Labor

• Department of Veterans Affairs

• Passport Office

• National Archives

Building Type: 

Government-owned

Building Owner:

General Services Administration

Building Operator:

General Services Administration

27

Federal Office Building

201 Varick Street

New York, NY

Highlights:

The Varick Street Federal Office

Building is a former warehouse

building which is located in a mixed

zone community on lower

Manhattan’s western border of

Greenwich Village. It has been 

converted over the last 20 years into

a multi-use facility. The building

provides space for a variety of

agencies with specialized mission

requirements, needs that could not

be easily accommodated in other

existing Government-owned space.
Total Rentable Square

Feet:

365,582

Major Occupants:

• Department of

Agriculture

• U.S. Army Corps of

Engineers

Building Type:

Leased

Building Owner:

Marzer Venture

Building Operator:

Melvin Mark Properties

Age:

Approximately 7 years

28

Robert Duncan Plaza

333 SW First Avenue

Portland, OR

Highlights:

This property is located in the old

town area of the Portland Central

Business Area, approximately ten

blocks from Portland City Hall. It

contains mostly office space and

includes a childcare center.

This leased building has won a

number of awards:

• 1991 Oregon National

Association of Industry and

Office Properties (NAIOP)

Award of Design Excellence

• 1991 Portland General Electric

Energy Edge Award

• 1994, 1995 Office Building of the

Year (Pacific NW Region) for a

Government Building

• 1994, 1995 Building Owners and

Managers Association (BOMA)

Pursuit of Excellence Award for

a Government Building

• 1995 BOMA Toby Award

Government (Government

Building Category) Honorable

Mention.
Building Type:

Government-owned

Building Owner:

General Services Administration

Total Rentable Square Feet:

857,805

Major Occupants:

• Drug Enforcement

Administration

• Equal Employment Opportunity

Commission

• Department of Labor

• Health and Human Services

• Immigration and Naturalization

Service

• Internal Revenue Service

• Social Security Administration

• Department of Veterans Affairs

• Department of Energy

29

John F. Kennedy 

Federal Government Center

Boston, MA

Building Operator:

General Services Administration

Age:

Approximately 33 years

Highlights:

The JFK modernization project,

initiated in October 1990, was an 

$85 million project to renovate the 

27-story high-rise building and the

four-story low-rise building.

Together, the two buildings provide

offices to approximately 15 Federal 

agencies and house approximately

2,000 employees. The building was

entered in the competition for

BOMA’s TOBY award last year in the

renovated building category, but was

not selected.
Total Rentable Square Feet:

1,068,671

Major Occupants:

• Environmental Protection

Agency

• Internal Revenue Service

• Federal Bureau of Investigation

Building Type:

Government-owned

Building Owner:

General Services Administration

Building Operator:

General Services Administration

Age:

Approximately 4 years

30

Federal Office Building

290 Broadway

New York, NY

Highlights:

The Federal Office Building at 

290 Broadway, commonly referred to

as the New Foley Square Federal

Building, is a high quality 30-story

post modern style building. A

second Federal building, the U.S.

Courthouse at 500 Pearl Street, was

constructed as part of the same

project. The two buildings met the

expansion needs of the U.S. Courts

and provided Government-owned

space for Federal agencies, reducing

dependence on leased space in one

of the most expensive commercial

office leasing markets in the nation.

The New Foley Square Federal

Building has won the following

awards:

• BOMA/NY - 1994/95 New

Construction Award

• Small Business Administration

Award

• 1994 GSA design award -

Children’s Interpretive Project

on the African Burial Ground

The New Foley Square Federal

Building and the U.S. Courthouse

together have won the Professional

Women in Construction Award and

the Department of Energy Award.
Total Rentable Square

Feet: 

33,174

Major Occupant:

Office of Personnel

Management

Building Type:

Leased

Building Owner:

Cherry Creek Place Associates III

Building Operator:

Larken Inc.

Age:

Approximately 16 years

31

Western Management 

Development Center

3151 S. Vaughn Way

Aurora, CO

Highlights:

The Office of Personnel Management

(OPM) leases 33,174 square feet or 

34 percent of the 96,742 square foot

facility located in Aurora. OPM’s

Western Management Development

Center is located near the “mile

high” city and a short distance from

the new airport serving Denver.

The training center provides full

services to attendees. Employees are

housed at an adjoining hotel, and

have access to the in-house dining

area, a restaurant, employee lounge,

and nearby athletic center. Located

on floors number two and three

across the parking area is the fullyequipped office building with

meeting rooms, student

lounge/break areas, computer lab,

library, and duplication center.
Total Rentable Square

Feet: 

359,111

Major Occupants:

• U.S. Courts (District

and Bankruptcy)

• U.S. Attorneys

• U.S. Probation

• U.S. Marshals Service

• Occupational Safety and Health

Administration

Building Type:

Government-owned

Building Owner:

General Services Administration

Building Operator:

General Services Administration

Age:

Approximately 96 years

32

Federal Building and U.S. Courthouse

46 East Ohio Street

Indianapolis, IN

addition to the building extended

the classical facade around the north

side and provided an appropriate

elevation facing the important six

block long, Beaux Arts inspired

Indiana War Memorial Plaza,

terminated at the north by 

Paul P. Cret’s 1917 classical revival 

design, the Indianapolis Public

Library.

This structure is an excellent

example of the Classical Revival

style of architecture that was popular

for public buildings at the turn of the

century.

Highlights: 

The building site was purchased in

1900 for $626,000. The building was

completed in September 1905 to

accommodate 925 federal employees.

Originally, the facility provided

courtrooms and associated spaces for

the U.S. District Court for Indiana; it

also housed a Post Office. An 
Age:

Approximately 34 years

Total Rentable Square Feet:

256,882

Major Occupants:

• Internal Revenue Service

• U.S. Bankruptcy Courts

• Social Security Administration

• Consular Affairs

Building Type:

Government-owned

Building Owner:

General Services Administration

Building Operator:

General Services Administration

33

Claude Pepper Federal Building

51 Southwest First Avenue

Miami, FL

Highlights:

By an act of the United States

Congress, the Federal Building at 

51 Southwest First Avenue in Miami,

Florida, has been named the Claude

Pepper Federal Building. The

building was constructed in 1964 at a 

cost of $5,844,000 and rises 225 feet

(16 floors) above the ground.

Renovations now being completed

will improve the building’s

accessibility and upgrade fire alarm

and sprinkler systems.
Total Rentable Square Feet:

256,510

Major Occupants:

• Department of Veterans Affairs

• U.S. Army Corps of Engineers

• U.S. Courts

• U.S. Attorneys

Building Type:

Government-owned

Building Owner: 

General Services Administration Building Operator:

General Services Administration

Age:

Approximately 46 years

34

Federal Building Courthouse Annex

801 Broadway

Nashville, TN

Highlights:

The Federal Building Courthouse

Annex is located only blocks from

the famous Nashville “Music Row”.

The building is strategically located

within blocks of the waterfront and

centrally located between the new 

business district and the old 

business district. The building is

100% occupied. An underground

tunnel connects the parking facility

with the annex and is used by the

U.S. Marshals to transport prisoners.
Age:

Approximately 32 years

Total Rentable Square Feet:

117,220

Major Occupants:

• Internal Revenue Service

• U.S. Attorneys

• U.S. District Courts

Building Type:

Government-owned

Building Owner:

General Services Administration

Building Operator:

General Services Administration

35

U.S. Courthouse

West 904 Riverside Avenue

Spokane, WA

Highlights: 

The U.S. Courthouse is strategically

located in downtown Spokane

adjacent to the old historic Federal

Building and U.S. Post Office. The

Spokane River Falls are located

directly across the street.

At the suggestion of the Spokane

County Democratic Central

Committee, Rep. Jim McDermott is

proposing to rename the nine-story

structure the “Thomas S. Foley

Federal Building.’’
Total Rentable Square

Feet: 

554,459

Major Occupants:

• U.S. District Courts

• U.S. Marshals Service

Building Type: 

Government-owned

Building Owner:

General Services Administration

Building Operator:

General Services Administration

Age:

Approximately 66 years

36

Theodore Levin U.S. Courthouse

231 Lafayette Street

Detroit, MI

March of 1934. On November 2, 1994,

the U.S. Congress approved an act to

designate the courthouse as the

“Theodore Levin United States

Courthouse.”

In 1932, the existing Rococo Italian

marble courtroom in the soon to be

demolished old Postal Building was

disassembled, numbered, stored in a

warehouse, and then reconstructed in

the new Courthouse in 1934. The

unique nature and cost of that effort

led to its designation as “The Million

Dollar” courtroom. It remains an

actively used facility.

Highlights:

Federal authorization and planning

for the U.S. Courthouse occurred

during the presidency of Herbert

Hoover. The building’s overall

impression is one of Neo-Classical

Revival with Modernistic traits.

Construction began in April of 1932

and the completed building opened in
Highlights:

This facility is situated at the south

end of the city’s eastside. The

building was constructed in 1953.

The building is a one-story steel

frame structure with exterior walls

made of masonry block backing with

brick veneer. The building was

originally constructed for warehouse

use.

The General Services Administration

Total Rentable Square

Feet 

398,514

Major Occupant:

Internal Revenue Service

Building Type: 

Government-owned

Building Owner:

General Services

Administration

Building Operator:

General Services Administration

Age:

Approximately 45 years

37

Federal Building

2306 E. Bannister Rd.

Kansas City, MO

has made significant renovations to

upgrade portions of the building for

office and related use. Building 2306

provides space for an Internal

Revenue Service National Service

Center. The building is located on a

38-acre site that also includes 

2312 East Bannister Road, which

houses the National Archives and

Records Administration.
Total Rentable Square Feet:

196,751

Major Occupants:

• Social Security Administration

• Small Business Administration

Building Type:

Government-owned

Building Owner:

General Services Administration

Building Operator:

General Services Administration

Age:

Approximately 125 years

Highlights:

The U.S. Custom House and Post

Office, now known as the Old Post

Office, occupies an entire city block in

downtown St. Louis. Construction

began in 1873 and the building was

formally dedicated on March 14, 1884.

Originally built to house all Federal

offices in the growing city, the

building has served as a U.S. Post

Office, Custom House, U.S.

Courthouse, and Subtreasury. It has

38

Old Post Office

815 Olive Street

St. Louis, MO

also housed departments such as

Steamboat, Lighthouse, and Post

Office Inspection Offices, offices of

the Internal Revenue Service, the U.S.

Army Corps of Engineers, military

recruiting offices and congressional

offices.

Built in the post-Civil War era of

growth and extravagant elegance, the

building is important for three

reasons:

• It serves as an excellent example

of the Second Empire style,

which was very popular

immediately following the Civil

War.

• Its original construction details

are noteworthy as representative

of late 19th Century technologies.

• It represents a vanishing type of

Federal architecture in a

substantial state of preservation.
Highlights:

The story of the Custom House’s

architects is complicated and

interwoven with the story of the

building’s construction over a thirtythree year period. In 1845, Congress

authorized five hundred dollars to

plan a new Custom House. The

partially completed building was

first occupied in 1856, when the U. S.

Customs Service moved into the first

floor. The Postal Service moved into

Total Rentable Square

Feet: 

209,614

Major Occupant:

Department of Agriculture

Building Type: 

Government-owned

Building Owner: 

General Services

Administration

Building Operator: 

General Services Administration

Age:

Approximately 149 years

39

U.S. Custom House

423 Canal Street

New Orleans, LA

the Custom House in November

1860, and the building served as the

city’s main post office through the

remainder of the nineteenth century.

In terms of significance, one interior

space is worthy of special note. In

the center of the building on the

second floor is an immense room

ninety-five by one hundred twentyfive feet by fifty-four feet in height,

known as the Marble Hall.
Total Rentable Square

Feet: 

266,750

Major Occupants:

• Bureau of Indian

Affairs

• Bonneville Power

Administration

• Fish and Wildlife

Service

Building Type: 

Government-owned

Building Owner: 

General Services Administration

Building Operator: 

General Services Administration

Age: 

Approximately 44 years

40

Federal Building

911 Northeast 11th St.

Portland, OR

Highlights:

The Portland Federal Building won

the 1994 Office of the Year award in

the BOMA government category.

The building was renovated in 1989.
Building Operator:

General Services Administration

Age:

Approximately 67 years

Total Rentable Sq. Feet: 

249,525

Major Occupants:

• Equal Employment

Opportunity

Commission

• Department of

Housing and Urban

Development

• National Park Service

Building Type:

Government-owned

Building Owner:

General Services Administration

41

Old Federal Office Building

909 First Avenue

Seattle, WA

Highlights:

The Old Federal Office Building

(FOB) was designed in 1930 and

constructed in 1931-1933 for a

budgeted cost of $2,375,000. The

significance of the FOB is based on its

history and architecture. The

building, located in Seattle’s

downtown waterfront neighborhood,

is a landmark in the city’s Central

Business District. It was the first

building specifically designed for

Federal offices in Seattle. The FOB

was also one of the first Art Decostyled Federal buildings to be

designed by the Office of the

Supervising Architect of the

Department of Treasury. The

building’s distinctive stepped

massing, brick facades and Art Deco

ornamentation are part of Seattle’s

architectural character.

The building site is also associated

with the great Seattle Fire of 1889.

The fire began across the street at the

northeast corner of Front and Marion

Streets. It destroyed over 64 acres

and 58 blocks of the city’s commercial

center that were subsequently rebuilt

with the fire-resistant masonry

structures that characterize Seattle’s

Pioneer Square Historic District. In

1974, the Start of the Seattle Fire Site

was placed on the State Register of

Historic Places.
Total Rentable Square

Feet:

1,040,073

Major Occupant: 

Department of Energy

Building Type: 

Government-owned

Building Owner: 

General Services

Administration Building Operator: 

Department of Energy

Age: 

Approximately 42 years

42

Department of Energy 

Germantown Complex

19901 Germantown Rd.

Germantown, MD

Highlights: 

The Germantown Complex is

situated on 99 acres of land

purchased in 1956 from W.O. Dosh.

The complex was approved to house

the U.S. Atomic Energy Commission.

The Government determined that

the location and the type of

structures to be constructed in the

complex would afford reasonable

protection against blast effects of a

thermonuclear weapon in the event

of an attack on Washington, DC.

The location was also easily

accessible to the Congress and the

Executive Branch.

President Eisenhower dedicated 

the Germantown building on

November 9, 1957, by unveiling a

plaque and officiating in laying the

cornerstone. Power for the

ceremony was drawn from batteries

charged by nuclear reactors. Four

rolls of 16mm microfilm, containing

9,000 pages of historical documents

on atomic energy, were placed inside

the cornerstone.
Building Operator: 

General Services Administration

Age: 

Approximately 65 years

Total Rentable Square

Feet: 

827,436

Major Occupants:

• GSA, National Capital

Region

• Department of

Education

Building Type: 

Government-owned

Building Owner: 

General Services Administration

43

General Services Administration

Regional Office Building

7th & D Streets, SW

Washington, DC

Highlights: 

During the tenure of 

Lt. Col. U.S. Grant, III, as Director 

of the Public Buildings and Public

Parks of the National Capital 

(1925-33), many Federal buildings

were built in the District including

the Federal Warehouse, now known

as GSA’s Regional Office Building. 

In 1929, President Hoover approved

a bill authorizing construction of the

Federal warehouse to permit

centralized purchasing and

distribution of supplies to agencies.

The final plans called for a

reinforced concrete building approximately 250 feet square and 90 feet 

high with 7 stories and a basement.

The Federal warehouse was constructed in 1933. In 1960, the building was converted to office space.

The building has an exceptional floor

load capacity of 200 pounds and is in

close proximity to Capitol Hill.
Total Rentable Square

Feet: 

1,754,655

Major Occupant: 

Department of Energy

Building Type: 

Government-owned

Building Owner: 

General Services

Administration Building Operator: 

Department of Energy

Age: 

Approximately 29 years

44

James Forrestal Building

1000 Independence Avenue, SW

Washington, DC

Highlights: 

The James Forrestal Building, named

for the first Secretary of Defense, was

designed and constructed

specifically for the Department of

Defense. Congress authorized its

construction in 1961. In 1965,

President Lyndon B. Johnson

renamed the new Federal Office

Building #5 the James Forrestal 

Building. In April 1969, various

organizations from the Department

of Defense moved into the new

building.

On August 3, 1977, the James

Forrestal Building was selected as

Headquarters for the newly

established Department of Energy 

(DOE). James R. Schlesinger, then

Secretary of Energy, directed that

movement of personnel would begin

on April 28, 1978, with his immediate

office and 200 DOE employees.

Formal DOE operations at Forrestal

commenced on May 1, 1978.
Total Rentable Square Feet: 

356,235

Major Occupant:

National Foundation on the Arts 

and the Humanities

Building Type: 

Government-owned

Building Owner: 

General Services Administration

Building Operator: 

General Services Administration

Age: 

Approximately 108 years

45

Old Post Office

1100 Pennsylvania Avenue, NW

Washington, DC

Highlights: 

The Old Post Office Pavilion is

dedicated to 45% retail outleasing.

The story of the Old Post Office is a

story of survival. When completed

in 1899, it stood out as a symbol of

prestige and technical innovation for

the Federal Post Office Department.

At the turn of the century, it was the 

largest Government building in the

District of Columbia, and the first

clock tower. It was the city’s first

modern “skyscraper,” over 12 stories

tall, with a steel frame covered by a

skin of granite to make it fireproof.

Its electric power plant, capable of

running 3,900 lights, was the first to 

be installed in the city. The building

is a fine example of Richardsonian

Romanesque Revival architecture, a

style in vogue at the time, and its

courtyard remains one of the largest

uninterrupted interior spaces in the

city (99 feet wide by 184 feet long

and 160 feet high).
Total Rentable Square

Feet: 

420,112

Major Occupants:

• U.S. Customs Service

• Food and Drug

Administration

• National Park Service

• Bureau of Alcohol,

Tobacco and Firearms

• Department of Labor

• Bureau of Prisons

• Department of Agriculture

Building Type: 

Government-owned

Building Owner: 

General Services Administration

Building Operator: 

General Services Administration

Age: 

Approximately 66 years

46

U.S. Custom House

2nd and Chestnut Sts.

Philadelphia, PA

Highlights: 

The Custom House opened on

November 10, 1934. Construction cost

was approximately $3,500,000.

Distinguished by richness of

materials, by the quality of its design,

and by a decorative program by a

major local artist, the Custom House

is a fitting architectural monument to

Philadelphia’s status as a major port.

Where Federal buildings often

repeated a conventional scheme with

minor variations, the form of the

Custom House stands out for its

boldness and originality. Most

striking of all is the building’s tapered

tower, the apex of which housed a

powerful beacon light. By far the

tallest building on the waterfront area, 

the Custom House continues to reveal

its design inspiration by night: a

symbolic lighthouse keeping watch

over the port of Philadelphia. The

Custom House is a contributing

resource in the Independence

National Park National Register

District, and has won the Award for

Excellence in Historic Preservation.
Highlights: 

Corporate Square is centrally located

at the Northeast quadrant of North

Druid Hills Road and Interstate 85.

The property is easily accessible to

all major centers in the Atlanta

metropolitan area.

Since April 1993, the Corporate

Square Building Complex has

housed two very high profile 

Total Rentable Square Feet: 

164,070

Major Occupant: 

Centers for Disease Control

Building Type: 

Leased

Building Owner:

Hallwood Real Estate Investors Fund

Building Operator:

Hallwood Commercial Real Estate

Age: 

Approximately 29 years

47

Corporate Square

10, 11, 12 Corporate Square

Atlanta, GA

programs run by the Centers for

Disease Control, Department of

Health and Human Services: the

National Immunization Program,

and the National Center for HIV,

STD, and TB. The leased area is

predominantly office space with

supporting conference and library

areas.
Total Rentable Square

Feet: 

70,819

Major Occupants:

• Department of Justice

• Federal Trade

Commission

• Equal Opportunity

Commission

• Federal Labor

Relations Authority

• Federal Energy Regulatory

Commission

• National Labor Relations Board

Building Type: 

Leased

Building Owner: 

Lurie Company

Building Operator: 

Lurie Company

Age: 

Approximately 86 years

48

901 Market Street

901 Market Street

San Francisco, CA

Highlights: 

Since 1992, the third and fourth

floors of 901 Market Street have

housed several Federal tenants in the

San Francisco area. The building,

uniquely equipped with a central

atrium that overlooks the main floor, 

is located in a heavily commercial

area of downtown, readily accessible

to all amenities. The space is

comprised of office space with

supporting conference rooms and

library.
Building Operator: 

General Services Administration

Age: 

Approximately 32 years

Total Rentable Square

Feet: 

729,083

Major Occupants:

• General Services

Administration

• Department of

Defense

• Social Security

Administration

Building Type: 

Government-owned

Building Owner: 

General Services Administration

49

Fritz G. Lanham Federal Building

819 Taylor Street

Fort Worth, TX

Highlights: 

The Fritz G. Lanham Federal

Building in Fort Worth, Texas,

dedicated on September 17, 1996,

was named in memory of 

Fritz Garland Lanham, a

Representative from the State of

Texas from 1919 to 1947. This

building stands out among other

downtown buildings with its black

spandrel glass. The exterior of the

building is constructed of marble and

granite standing 14 stories high with

a basement and penthouse. The

building houses the regional offices

of many Federal agencies. During

the 1966 dedication Congressman

James C. Wright Jr. of Texas remarked

that the building “represents the

Government of the United States - the

freest, most approachable and most

responsive instrument of public will

ever to serve and bless a land under

Heaven’s canopy in the history of the

human race.”
50

Private Sector

Performance

Building Pr Building Profiles ofiles

Private Sector

Performance

Governmentwide

Baseline

Governmentwide

Baseline

http://policyworks.gov/realproperty
4.

We found that agencies were

able to supply information on

owned facilities more readily

than leased facilities. This bias

toward collecting owned data resided as much in the project

team as in the subject agencies.

5. Regarding cost per square foot

(owned), the analysis indicates

that Governmentwide

performance tends toward the

lower end of the private sector

range of performance. Given the

size and age of the Federal office

inventory, this is an impressive

finding and indicates good asset

management.

6. Regarding vacancy rate,

Governmentwide performance

tends towards the higher end of

the private sector range of

performance. This may be an

indication of the early stages of

downsizing, since pockets of

vacant space cannot be easily

consolidated for disposal. This

is consistent with conclusions

drawn in a report entitled Impact

of Federal Downsizing on Real

Property that we published 

on our web site

http://policyworks.gov/realproperty

earlier this year.

7. Regarding cost per square foot

(leased), Governmentwide

Observations 

from the Data

1. When reviewing this

publication, please keep in mind

that this is a voluntary

benchmarking effort, not a

budget document. The results

presented in this document represent an analysis, not an

audit.

2. Another important consideration

(especially for cost per square

foot owned, vacancy rate, and

cost per square foot leased) is

that the baseline numbers are

expressed as national averages.

When making comparisons to

local portfolios or individual

facilities, geographic cost

differentials should be

considered.

3.We were pleased at the extent of

non-GSA participation in the

benchmarking project. Over 

31 percent of the sample data

came from non-GSA facilities.

According to the Worldwide

Inventory, agencies other than

GSA control approximately 

60 percent of the Government’s

office space, so there is still room

for improvement in non-GSA

participation.

51

Observations and

Recommendations
performance tends towards the

higher end of the private sector

range of performance. This may reflect a greater dependence on

leased space in recent years due

to a lack of capital investment

funding, but a stronger

explanation may be the

disproportionate amount of

leased space in our sample

located in the high cost Washington, DC rental market.

8. Regarding cost per person, the

data is very sketchy in both the

public and private sectors. We

propose a formal benchmarking

project to refine the baseline

estimate. However, the available

data suggests comparability

between Government and

corporate costs.

9. Regarding customer satisfaction,

the comparison is somewhat

questionable because of the

different measurement

instruments involved. Ignoring

that issue, it appears that

Governmentwide performance is

comparable to private sector

performance, which is notable

given that older Government

facilities must compete with

newer private sector buildings in

key customer (tenant)

satisfaction areas such as

temperature control and air

circulation.

10. Regarding total square feet and

employees housed, these are

statistics presented to provide a

context. We explored the relationship between these

variables in depth in our 

1997 Office Space Use Review.

Quality of the Data

In collecting the data used in this

analysis, we made every effort to: • Clearly define each performance

measure and what it includes.

•Translate square feet into a

common denominator of rentable square feet.

•Translate dollar amounts into a

common denominator of 

1998 dollars.

Although we used the same

conversion and inflation factors

consistently, this data transformation

necessarily modifies data from the

original sources. Also, we must

accept data from various Federal

information systems as accurate,

since we cannot crosscheck data

entry. In spite of these limitations,

we still believe the data analysis is

useful and valid. We discuss indicator-specific data

52
The Governmentwide baseline relies

disproportionately on GSA building

data. GSA buildings comprise just

under 70 percent of the data sample,

as compared to a 40 percent share of

Governmentwide office space as reported in the Worldwide

Inventory. However, as mentioned

earlier, the extent of non-GSA

participation in this initial voluntary

benchmarking effort exceeded our

expectations.

Recommendations

and Next Steps

Although customer feedback will be

the ultimate judge, we feel that our

Governmentwide performance

measurement initiative for the real

property function has been

worthwhile. Following are some recommendations and potential next

steps: • We have received interest in the

voluntary benchmarking effort

from other governments (we

even received data from the

Canadian Federal Government).

Although this is beyond the

original scope of our effort, if

there is sufficient interest we

might issue a supplemental

international version of

Performance Results.

problems in the Governmentwide

Baseline section. Some other issues relating to the data collection are:

The sampling of facilities was not as

scientific as we originally

envisioned. We thought that we

might put together a “representative

sample” of Federal office facilities

that mirrored the agency makeup represented in the Worldwide

Inventory. In reality, the team

accepted whatever it could get in the

way of performance data. This

makes the baseline more of an initial

sampling rather than a truly representative baseline. We necessarily were dealing with

many different information systems.

This presented various challenges,

such as dealing with different

definitions of office space and prorating overall inventory operating

costs over the office space portion of

the inventory.

Due to the renovation project, we

were unable to include the Pentagon

in our sample. Future editions of

Performance Results will hopefully

benefit from the inclusion of data

from, not just the Pentagon (the

largest single Federal office

building), but also the newlyconstructed and occupied 

Ronald Reagan Building in Washington, DC (the second largest).

53
•

We should convene a working

group by March 1999 to review

and refine the process, and to

add or delete measures. The

group can also determine the

right timeframe for the data call

in support of the follow-up 

1999 edition of Performance

Results. Although the late

summer 1998 data collection

timeframe conflicted with

agency budget preparation

activities, it did assure the most

timely data for the 1998 analysis.

•We propose to lead a formal

benchmarking study on Cost per

Person as discussed earlier.

• As we discussed at our agency

meeting on the Governmentwide

Real Property Performance

Measurement Study in March 1998,

we continue to encourage

agencies to submit more detailed

performance data to BOMA as

part of the government sector

analysis in their annual

Experience Exchange Report.

54
55

Notes
56
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Office of Real Property

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Publications Survey
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continued on next page

Why 2K?: Getting Your Buildings 

Ready for the New Millennium

Y2K ISSUES

Most of the hoopla about Year 2000

compliance problems has focused on

computer hardware and software.

Only recently have other systems, including

building systems, many with embedded

microchips, been identified as also having the

potential to harbor the dreaded “Millennium

Bug,” also referred to as the Year 2000 or

Y2K Problem. This is a flaw in date-related

programming that may cause operating

problems when a two-digit date is mistaken

for the year 1900 instead of 2000.

If you are a building owner, operator, or

occupant, you should be aware that such

things as security and access systems, fire

alarms, HVAC systems, building

management systems, lighting, utilities,

elevators, escalators, and other systems may

not operate properly, or at all, after

December 31, 1999. If you have not already

done an assessment of your building

inventory and started making Y2K fixes, you

are quickly running out of the time and,

possibly, talent required to keep your

buildings operational into the next

millennium.

What Should Agencies Do?

Executive Order No. 13073 and pending

legislation require all agencies with real

property authority to ensure that Federal

government facilities will remain operational

across the Year 2000 date change. This

requires a systematic process of evaluation

and repair that can roughly be broken into

five phases: awareness, assessment,

renovation, validation, and testing and

implementation, all as part of an overall

planning and project management effort.

Determining mission critical systems and

developing contingency plans to anticipate

failures and how to deal with them are

crucial parts of the planning effort.

The awareness phase is simply that; making

everyone who needs to know aware of the

problem and its implications. It is especially

important to get building managers and

upper level management to recognize the

importance of these issues and take action

now to determine the extent of the problem

and identify the staffing needs to fix it.

The next phase, assessment, calls for

surveying all building equipment and

interrelated systems to determine if there

are any computerized control systems or

embedded microchips that may have daterelated problems. Verification of compliance

must be obtained from the manufacturer for

each piece of equipment, by model and serial

number. Noncompliant systems and

equipment must be repaired or replaced.

Mission-critical systems deemed compliant

by the manufacturer should nevertheless be

tested to validate the claims. Changes in

status must also be tracked, as

manufacturers have been known to change

their compliance status based on new or

updated information.

Once noncompliant systems are identified,

the problem components must be repaired or

replaced. For systems and embedded

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Office of

Real Property

Governmentwide Real Property

Performance

Measurement

Study

June 1998

Office of

Real Property

Governmentwide Real Property

Performance

Measurement

Study

June 1998

U.S. General

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Policy

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Office of Real Property

Office Space Use

Review

Current Practices 

and Emerging Trends

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Governmentwide

Policy

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GOVERNMENTWIDE

REAL PROPERTY

INITIATIVES AND

ACCOMPLISHMENTS

FY 1997

OFFICE OF REAL PROPERTY

U.S. General

Services

Administration

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Policy

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