Elon Musk’s DOGE Has Terminated 22 Federal Leases So Far

It took DOGE only six days to terminate 22 Federal leases. GSA oversees the federal government’s 360 million square feet of owned and leased properties.  Landlords with GSA as a tenant may be worried as many leases have early termination clauses. As reported in a January 18, 2018 Colliers Insights report, “Investors and lenders frequently ask how often GSA exercises its termination rights. It’s a necessary question because roughly 75% of GSA leases contain some form of cancelation clause–typically a rolling right to terminate.”  I would add two other categories of entities to be possibly very worried about this…lenders with loans on office buildings with GSA as a major tenant, and cities and municipalities with government offices that, if occupied, would bring downtown lunch and retail traffic from their employees…I have also heard reports of possible fire-sales in the future for obsolete or deteriorated government properties that don’t make sense for the government to retain.