The Evolving Role of Brokers in Federal Leasing: Key Takeaways from GAO’s Latest Report
The U.S. Government Accountability Office (GAO) recently released a report examining the role of commercial real estate brokers in federal leasing. The report, titled Federal Real Property: Brokers Were Involved in Fewer Leases in Recent Years and Generally Met Performance Targets (GAO-25-107050), analyzes trends in the General Services Administration’s (GSA) leasing practices from 2016 to 2024. It also evaluates the performance of brokers in securing cost savings and the impact of policy changes on competition.
GSA, as the primary leasing agent for federal agencies, has historically relied on brokers to help negotiate lease agreements, leveraging their expertise to secure favorable terms and cost savings. However, the GAO report highlights a decline in broker involvement over the past several years, largely due to shifting workplace dynamics and strategic real estate decisions by federal agencies. The COVID-19 pandemic accelerated telework adoption, leaving agencies uncertain about their long-term space needs. This, combined with GSA’s push to consolidate office space and prioritize federally owned properties, contributed to fewer leases being signed.
Despite this decline, brokers generally met or exceeded performance targets set by GSA. The agency uses key metrics such as cost avoidance—measuring how much money brokers save through lower rental rates and reduced square footage—and schedule adherence, which tracks whether lease negotiations meet established timelines. The report found that from 2020 to 2023, brokers consistently helped GSA achieve cost savings and complete lease transactions within expected timeframes.
A key finding of the report is that GSA’s 2020 decision to exempt brokers from enhanced competition for smaller lease projects did not yield the anticipated benefits. Under this policy, brokers did not have to compete for task orders with commissions under $2 million. The expectation was that this would lead to increased cost savings and better performance by allowing brokers to focus on their work rather than submitting frequent bids. However, after analyzing 16 completed projects, GAO found that the exemption failed to generate measurable cost savings and, in some cases, led to increased expenses. Furthermore, the policy created disparities in task order awards, with some brokers securing a disproportionate share of contracts. Given these findings, GSA reversed the exemption in 2023 and reinstated competitive bidding for all relevant lease transactions.
The report underscores the importance of aligning broker performance metrics with strategic goals. By linking cost avoidance and schedule adherence to broader agency objectives, GSA can ensure that brokers contribute to efficiency and financial stewardship. The study also highlights the delicate balance between outsourcing expertise to brokers and maintaining robust oversight to prevent conflicts of interest. While broker commissions are typically offset by cost savings, concerns persist that these incentives could influence lease negotiations in ways that may not always be in the government's best interest.
Looking ahead, federal real estate management remains in flux. With over half of GSA’s leases set to expire by 2027, the government has an opportunity to rethink its leasing strategy. The report suggests that as agencies reassess their space requirements in a post-pandemic landscape, GSA must determine the optimal role for brokers in future transactions. Ensuring a competitive, performance-driven brokerage model will be key to maximizing taxpayer value.
This blog post is based on GAO-25-107050 and does not guarantee accuracy or provide legal advice. Readers should refer to the full GAO report for official findings.
