Proposed Lease of Space in a Building at 400 North Capitol Street, Washington, D.C.

LCD-76-353: Published: Oct 1, 1976. Publicly Released: Oct 1, 1976.

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A review was made of a proposed lease to the government of a building in Washington, D.C., to be negotiated by the Senate Sergeant at Arms as authorized by Congress. Negotiations for leasing of the entire building failed because of inability to agree on terms. Proposals for purchase of the building were defeated in the Senate, and plans were made by the Senate to lease a portion of the building for computer operations. The time period for completion of the GAO review did not allow for study of the finalized lease or alternative arrangements.

GAO found that the rates proposed by the owner appeared high compared with General Services Administration (GSA) appraised rentals. After the Sergeant at Arms was informed of these findings, he negotiated for terms which brought the effective rate to $6.175 a square foot and the adjusted rate to $9.97 a square foot. These rates are considered reasonable according to GSA appraisals, legislated rental limitations, and comparisons with other tenants in the building. In addition, proximity to other Senate buildings is of value.

Recommendation for Executive Action

  1. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: GSA should modify standard lease provisions to meet Senate needs.

    Agency Affected:


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