The Government Accountability Office has recommended the General Services Administration to expand competition for GSA leases in order to reduce leasing costs.
GAO made the recommendation after an analysis showed that approximately half of 714 new office leases that GSA negotiated from 2008 through 2014 surpassed the average local market rate for similar office space by at least 10 percent, the congressional audit agency said in a report published Wednesday.
GSA should allow tenant agencies to change their building and geographic requirements as another way to promote competition, according to the report.
GAO also urged GSA to consider the adoption of Federal Buildings Fund balances in order to lower interest fees and cover costs that tenants incur on improvements made to newly leased offices.
The office said it believes agencies could save on tenant fees if GSA would provide them the option to sign occupancy agreements that are non-cancelable.