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The State of the Union Is . . .

New York
The State of the Union Is . . .
JLL's Joe Brennan and Trammell Crow’s Tom Finan
With the federal stimulus concluded, we’re now at the beginning ofanother chapter—where we're going to cull waste—says JLL managing director of government investor services Joe Brennan(left, with Trammell Crow’s Tom Finan at a Bisnow GSA schmooze).President Obama’s State of the Union address was “great,” he says. “Education and infrastructure are all lofty goals we believe in.” But we have to separate the chatter from what’s really happening, he warns. There are three views on how to package and cut government spending, and when you get to the bone of them, there are political problems with all three. The words government officials use aren’t real, he says—it’s a matter of what they do with those words, such as the call to a federal income freeze.
President Barack Obama
But what does this mean for commercial real estate? Obama referenced the government selling acres of federal office space that hasn’t been used in years, but Joe notes he hasn’t seen much action on that. “His motives are pure,” he says, “but it takes work,planning, and negotiation.” Pursue government deals in play with vigor, Joe says; we’ll have to watch and see what happens withfuture procurement. He foresees government tenants favoringrenewals over taking new build-to-suit space, and for those who have to move, migration toward existing space, especially in sustainable,transit-oriented downtowns. There will also be a greater focus onspace efficiency, with less SF per person, hoteling, and work-at-home programs.
Related Topics: Joe Brennan , Tom Finan