The U.S. General Services Administration (GSA) is responsible for ensuring the effective stewardship and utilization of federal real property. To expand its Section 111 public-private outlease initiative—which allows underutilized federal properties to be activated through private-sector partnerships- GSA sought a data-driven, portfolio-wide evaluation criteria to identify high-potential outlease opportunities within its inventory of more than 500 historic buildings. In 2022, Emax was engaged to evaluate the portfolio and support the advancement of targeted outleasing strategies through public-private partnerships. 

Challenge 

GSA faced the complex task of determining which historic properties within its national portfolio offered the strongest potential for viable public-private outleases. Key challenges included: 

• Lack of a standardized, portfolio-wide evaluation framework to compare historic assets with diverse uses, conditions, and market contexts. 

• Need for a data-informed decision model that incorporates both federal asset characteristics and external real estate market metrics. 

• Limited visibility into private-sector interest for specific buildings with unique constraints, such as building security levels, preservation status, and potential lease structures. 

• Requirement to prioritize assets capable of generating revenue for reinvestment in historic federal buildings. 

GSA required a multi-faceted and dynamic model accompanied by a methodology developed specifically to evaluate outlease feasibility for all assets in GSA’s portfolio and identify a shortlist of high-value opportunities. 

Approach 

Emax worked to deliver an integrated, analytical and market-focused approach to support GSA’s Section 111 expansion effort. Core components included: 

1. Scoring Methodology and Model Development 

• Developed a comprehensive scoring methodology report, subsequently reviewed and approved by GSA. 

• Created and implemented a ranking model utilizing the approved scoring methodology, incorporating both GSA-provided data and CoStar market analytics. 

• Integrated user-selected sensitivities allowing GSA teams to adjust weights based on program priorities. 

2. Data-Driven Evaluation Framework 

The model assessed a broad range of variables in evaluating properties, including: 

• Economic potential (market rent by region) 

• Property type (office, housing, warehouse, event space, etc.) 

• Facility security level 

• Rentable space 

• Parking availability 

• Building classification and historic constraints 

• Event and public-facing use potential 

Weighted scoring enabled objective comparison of diverse historic assets. 

3. Analysis of Findings and Reporting 

• Produced a full analysis report summarizing portfolio-wide results and identifying top-ranking buildings with the strongest outlease potential. 

• Selected six properties for further market analysis. 

4. Market Interest Assessments 

For six high-ranking properties, Emax—partnering with Kidder Mathews—conducted: 

• Regional market outreach 

• Developer and operator interviews to gauge real interest 

• Financial feasibility assessments 

• Market-driven recommendations for next steps 

Each assessment culminated in a Way Forward Recommendation Report, combining model outputs, market realities, and GSA regional insights. 

Impact 

Emax’s work equipped GSA with a scalable, repeatable decision framework and actionable market intelligence to support the expansion of the public-private outlease program. Key outcomes included: 

• A validated scoring methodology and operational model enabling holistic, data-driven evaluation of historic assets nationwide, along with the potential to adjust the portfolio accordingly. 

• Identification of high-potential properties positioned for near-term outleasing opportunities. 

• New insights into market feasibility and developer interest, informing strategic resource allocation. 

• Actionable recommendations for advancing six priority properties, grounded in financial analysis and market feedback. 

• A strengthened foundation for revenue generation decision-making in support of reinvestment in historic federal buildings. 

Through this effort, Emax provided GSA with a forward-looking, market-aligned evaluation criteria that enhances federal asset utilization and advances long-term stewardship of the nation’s historic building portfolio.