WASHINGTON--(BUSINESS WIRE)-- Easterly Government Properties, Inc. (NYSE: DEA) (the “Company” or “Easterly”), a fully integrated real estate investment trust focused primarily on the acquisition, development and management of Class A commercial properties leased to the U.S. Government and its adjacent partners, today offered recommendations to the leaders of the Department of Government Efficiency (DOGE) in support of their goal to make the General Services Administration (GSA) more efficient.

“DOGE represents an exciting opportunity for the United States Government to address the inefficiencies that exist in the thicket of federal bureaucracy and meaningfully save taxpayers money,” said Darrell Crate, President & CEO of Easterly Government Properties and former Chairman of the Massachusetts Republican Party. “We have witnessed firsthand how slow decision-making and archaic financial rules have cost the American people significant resources. As the government undergoes this transformation, we stand aligned with DOGE’s efforts and are ready to leverage our expertise to help streamline operations, reduce costs, and ensure that taxpayer dollars are used efficiently.”

“Easterly owns and develops mission-critical facilities that serve essential functions for our nation like getting deadly drugs such as Fentanyl off the street, furthering criminal investigations, including cyber and terrorism, providing state-of-the-art Veterans healthcare, and ensuring stronger border security, among others,” said Crate. “After specializing in federal real estate for over 15 years, we have many observations of easy wins to save the Government money.”

Crate has offered DOGE leadership the following recommendations for GSA reform:

• Reform TAPS & Leasing v. Owning Real Estate: Reform The Automated Prospectus Systems (TAPS) to reflect current fiscal realities that the GSA is not annually funded for real estate capital needs such as repairs and maintenance for its owned portfolio. This has contributed to the estimated $80 billion in deferred maintenance for the Government’s owned assets. Reforming the TAPS analysis will ensure the government better estimates the total cost of ownership and supports leasing as a more cost-effective solution.
• Increase Flexibility of Budget Scoring Rules: The federal government has self-imposed accounting rules that discourage public-private partnership, like not allowing the government to negotiate a discounted purchase option or permitting ground lease -lease backs. More flexible budgetary scoring will drive private sector innovation and ultimately save the Government money.
• Streamline Prospectus Lease Process: The prospectus planning process for renewal of GSA’s larger leases starts five years prior to its current lease expiration. This protracted timeline does not keep up with evolving market conditions. Cutting through the bureaucratic process and approving prospectus leases sooner can improve the viability of the procurement of leased space and ultimately improve the efficiency of the government and deliver more value for less.
• Modify Lease Structure: Government can save upfront costs by adopting a more commercial lease structure with annual escalations as opposed to flat rents for the duration of the lease term. This will allow the government to minimize rental obligations at the beginning of the lease and allow the lessor to keep pace with market conditions.

As last reported in connection with the Company’s third quarter 2024 earnings release, Easterly owns 9.3 million square feet of real estate leased to the United States Government with a weighted average remaining lease term of 10.2 years. Easterly’s portfolio is comprised of approximately 95% firm term leases that support mission-critical agencies, including Immigration and Customs Enforcement (ICE), U.S. Customs & Border Protection (CBP), Department of Defense (DOD), Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), and the Department of Veterans Affairs (VA).

About Easterly Government Properties, Inc.

Easterly Government Properties, Inc. (NYSE:DEA) is based in Washington, D.C. and focuses primarily on the acquisition, development and management of Class A commercial properties that are leased to the U.S. Government. With a long-stated goal of being the partner of choice to the United States Government, Easterly’s experienced management team brings specialized insight into the strategy and needs of mission-critical U.S. Government agencies for properties leased to such agencies either directly or through the U.S. General Services Administration (GSA). For further information on the company and its properties, please visit www.easterlyreit.com.

This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as “believe,” “expect,” “intend,” “project,” “anticipate,” “position,” and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to those risks and uncertainties associated with our business described from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K filed on February 27, 2024. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of the date of this release, and we undertake no obligation to update any forward-looking statement to conform the statement to actual results or changes in our expectations.

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