This testimony describes the benefits to the federal government of public-private partnerships on real property. Under these partnerships, the private sector finances the renovation or redevelopment of real property contributed by the federal government. Each partner then shares in the net cash flow. Key factors typically considered in public-private partnerships are whether the properties are in areas with a strong real estate market or strong demand for office space. As a result of these partnerships, the federal government can potentially gain efficient, repaired space, and properties that were once a net cost to the government can become revenue producers. This testimony summarized a July report (GAO-01-906).
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