1. Office of Real Property Asset Management GSA Portfolio Overview January 2009

2. GSA – Federal Agency Update U. S. General Services Administration The US General Services Administration leverages the buying power of the federal government to acquire best value for taxpayers and our federal customers. We exercise responsible asset management. We deliver superior workplaces, quality acquisition services and expert business solutions. We develop innovative and effective management policies.

3. GSA – Federal Agency Update U. S. General Services Administration Public Buildings Service (PBS) Federal Acquisition Service (FAS)

4. GSA – Federal Agency Update U. S. General Services Administration What’s going on TODAY? 1.Presidential Transition 2.Economic Stimulus Package

5. GSA – Federal Agency Update U. S. General Services Administration Public Buildings Service (PBS) One of the largest and most diversified public RE organizations in the world. In 2,100 communities 6,197 employees About 30 appraisers

6. GSA – Federal Agency Update 1,513 Owned Buildings; 176 million RSF 7,106 Leased Bldgs; 175 million RSF Over 1,000,000 workers in PBS space 420 historic buildings, including 63 National Historic Landmarks

7. GSA – Federal Agency Update PBS in your community Customers (major) Justice Judiciary Treasury Defense Homeland Security Social Security Interior Health and Human Services Education EPA……and many more Good Neighbor Program Arts in Architecture Design Excellence Day Care

8. 18001941194519791993 world war II great society contemporary design excellence historic Construction Era Owned Inventory 46%

9. Historic 1810 – 1941 US Courthouse San Juan, Puerto Rico Alexander Hamilton Custom House New York, NY

10. World War II 1942 – 1949 Federal Center Kansas City, MO Federal Center Auburn, WA

11. Great Society 1950 – 1979 Federal Building and Courthouse Phoenix, AZ Federal Building Los Angeles, CA

12. Contemporary 1980 – 1993 Thomas O’ Neill Federal Building Boston, MA Alan Bible Federal Building Las Vegas, NV

13. Design Excellence 1994 – Present Lloyd George Courthouse Las Vegas, NV Federal Courthouse Islip, NY

14. Portfolio Trends Increase in square footage Decrease in number of buildings –New inventory and disposals –Lease consolidations/expansions Decrease in owned vacancy Maintained record low vacancy in leased

15. Space Trends

16. New Construction FY02FY03FY04FY05FY06FY07Total # of Assets72835934 Rsf (in millions)1.80.41.30.61.25.911.3 Cost (in millions) $483.6$163.9$496.9$110.9$860.9$1,983.6$4,099.7 Reported Excess FY02FY03FY04FY05FY06FY07Total # of Assets944835265513271 Rsf (in millions)5.81.42.02.42.20.314.1 Liability Avoided (in millions) $171.4$75.9$8.8$184.3$147.5$24.0$611.9 $ Proceeds (in millions) n/a $5.3$51.9$82.2$139.4 New Inventory Disposal

17. Vacancy Trends

18. Financial Trends Revenue increase driven by leases –Owned increased by almost 3% or $92M –Leased increase over 5% or $241M Growth in expenses outpaced revenue –Owned expenses increased by 4.4% –Leased expenses increased by 6.0% Leased FFO was negative for the second consecutive year

19. Financial Trends

21. Office of Real Property Asset Management Reinvestment Liabilities Realities Needs Funding Inflation September 2008

22. Reinvestment Realities Increasing construction costs Limited funding Large (expensive) national priorities Leasing for many long-term requirements

23. FY2007 Reinvestment Needs

24. Reinvestment Funding

25. Office of Real Property Asset Management The Path Forward Limited Call for 2010 Core Asset Review Leveraging Resources Section 412 Authority September 2008

26. 2010 Limited Call FY 2008 25 New Construction and R&A Projects - $1.3B Total 32 Lease Prospectuses (including lease alterations) Focus on unresolved issues: i.e. Billings Courthouse FY 2009 14 New Construction and R&A Projects- $1.3B Total 67% of the projects submitted by the regions did not advance 56 Lease Proposals. Most are still under review Stimulus package impact? FY 2010 Expect 2010 Budget, at best, to resemble 2009 (Stimulus package impact?) 49 New Construction and R&A Projects identified for Directed Call

27. Core Assets Financial Performance Strategic Assets Investment Rating

28. Historic Portfolio Historic Portfolio vs. Total Core Assets Portfolio LegacyPortfolio Legacy Percentage Building Count 217142415% RSF 43,452,990 177,238,07525% PCS $ 2,020,335,518 $ 6,262,672,02432% IRIS $ 3,589,177,569 $ 7,724,416,31346% NOI $ 461,517,668 $ 2,082,079,06622% BA54, 55, 64 obs (FY05 - FY07) $ 1,645,758,459 $ 5,416,212,35930%

29. Historic Portfolio(cont.) Historic Portfolio – Core Asset Holding Periods >15 Long Term 6-15 Transition 0-5 Short TermGrand Total Building Count 180325217 RSF 40,660,686 2,155,433 636,871 43,452,990 PCS $ 1,859,459,187 $ 92,287,085 $ 68,589,246 $ 2,020,335,518 IRIS $ 3,256,743,864 $ 172,143,341 $ 160,290,364 $ 3,589,177,569 NOI $ 454,953,383 $ 7,557,812 $ (993,527) $ 461,517,668 BA54, 55, 64 obs (FY05 - FY07) $ 1,575,221,895 $ 57,214,005 $ 13,322,559 $ 1,645,758,459

30. Capital Needs –New Construction $16.3 B. Courts $2.5 billion CBP $4.9 billion Executive Agency Priorities $4.8 billion Acquisition & New Construction$4.1 billion –R&A$8.1 B. R&A pipeline projects $5.1 billion Additional immediate repair needs $3.0 billion Limited scope projects & energy mandates$0.9 billion TOTAL NEEDS$25.3 B

31. Sources of Capital Traditional Sources Rent Direct Appropriations Existing Authorities Historic Outleasing ESPC 412 Disposal (exchanges, outlease) New Authorities Leasing (credit tenant leasing) purchase options Stimulus Package???

32. GSA – Federal Agency Update` Real Property Asset Management $2 to 3 Million $2 to 3 Million annually for individual contracts for appraisal services 3 Appraisal Programs: Fair Market Value (FMV) and Acquisition Fair Annual Rent (FAR) Property Disposition, Utilization

33. GSA – Federal Agency Update Dwight D. Eisenhower Executive Office Building Old Post Office U.S. Department of Justice Visit www.gsa.gov and www.govsales.gov

34. GSA – Federal Agency Update Oklahoma City Federal Building SSA Call Center; adaptive reuse, Auburn, WA Center for Drug Evaluation and Research, FDA, White Oak, MD Kansas City IRS; Lease construction

35. GSA – Federal Agency Update GSA National Appraisal Program Contacts: Acting Chief Appraiser and Disposal Appraisal Program Nicholas S. Hufford, MAI, CAE Nicholas.hufford@gsa.gov 202-501-2055 Market Value Appraisal Program: John N. Libeg, MAI, SRA John.libeg@gsa.gov 202-208-0746 Fair Annual Rent Program Jay Koepf Jay.koepf@gsa.gov 202-219-3052 Also see Regional Contacts list

36. GSA – Federal Agency Update Web Resources: USA websitehttp://www.usa.gov/ GSA websitehttp://www.gsa.gov/ Central contractor registrationhttp://www.ccr.gov/ Federal contracting opportunities http://www.fedbizopps.gov/ Get DUNS numberhttp://www.dnb.com/US/duns_update/index.html GSA Online RE auctionhttp://auctionrp.com/auctions2/ More government saleshttp://www.govsales.gov/html/index.htm

37. GSA – Federal Agency Update

38. THANK YOU! Nicholas S. Hufford, MAI, CAE Acting Valuations Director and National Appraiser for Property Disposition General Services Administration Public Buildings Service Office of Real Property Asset Management Valuations Division 1800 F Street NW, Suite 7300 Washington DC 20405 202.501.2055 202.631.2751 cell 202.219.9166 fax Nicholas.hufford@gsa.gov