This episode is truly a deep dive behind the curtain of how GSA completes its market research prior to and after “going to market”. We also cover a bit of information regarding changes in the GSA leasing curriculum that could lead to greater understanding amongst GSA and the private market with regards to the establishment of “what is market rent”.
Highlights of the Topics Discussed:
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- How does the Government determine its negotiation objectives?
- The first way is called the Bullseye Method. This method is a package of pure year 1 market information that is used to inform the governments negotiations. This method us used to explain the negotiation objectives in major REISE markets.
- The second way is the Negotiation Objectives that are used in every other style of markets. The approach to developing these objectives is actually dictated by the individual creating them. Most commonly people used Costar to pull their information. (https://www.costar.com/) There are some issues associated will pulling just Costar information, because of information inaccuracy and lack of definitions for specific services in specific industries. Learn more about this topic starting at 8 minutes.
- Training the Lease Acquisition Staff for GSA – Market Survey
- I train these employees from start to finish of the process of GSA building leasing. However, we go through the motions of how to complete GSA leasing, but the true understanding of Market research can sometimes get lost in that week course. GSA market research is a task that requires in depth and critical thought, and you can really get lost in the data which can lead to poor GSA market research.
- Understanding that market research is difficult to complete properly, GSA is currently working on another class that heavily focuses on how to complete market research. Arco is on retainer for a company assisting with this initiative, and we are happily providing our expertise into this class curriculum as well.