PRO Perspective: Federal Real Estate Trends

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Our September 30th episode features Greg Margetich and Norman Dong of the National Federal Development Association discussing government commercial real estate.

Crexi’s PRO Perspective series explores various aspects of the commercial real estate industry in conversation with some of its top CRE professionals. In each episode, we feature different guests to tap into their wealth of CRE expertise and explore the latest trends and updates from the world of commercial real estate. 

In this episode, Crexi’s Matt Cors sits with Greg and Norman to discuss the fundamentals of government commercial real estate investments and trends in the sector. Some key takeaways include:

  • From 2008 to the present day, the federal government has slowly focused on reducing and optimizing its spend on square footage. While needs per agency and local and state levels vary, this trend is likely to continue.
  • Financial crises correspond with an increase in government spending at the federal level, where more budget is allocated to departments equipped to handle the situation in question.
  • The pros of leasing to government clients are the security of income and long-term tenants, while cons include — typically — the onus on landlords to manage all property needs.
  • Amid COVID-19, the jury’s still out on current and future government space requirements. Transaction volume has paused on the federal level, while local and state governments are tightening their belts to support their economies during current events.
  • Governments have a mix of 50:50 leased and owned commercial real estate assets. Courthouses and FBI buildings are likely to be tenant-owned, whereas call centers or more generalized function properties are more likely to be leased. 

Check out the episode here:

About Greg Margetich:

Greg Margetich is President of The Margetich Group, a subsidiary of Margetich Real Estate & Development, a commercial real estate investment, transaction, and advisory company. Greg specializes in commercial real estate investments, including office, retail, and industrial properties, with expertise in the acquisitions and dispositions of government-leased properties located throughout the United States.

Greg sits on the Board of Directors of the National Federal Development Association as its Vice-Chairman & Treasurer. NFDA is a national trade association representing organizations and individuals that provide real estate services to the United States Government, State & local municipalities’ land-holding agencies. 

Greg earned his Bachelor’s from Santa Clara University.

About Norman Dong:

Norman Dong serves as the Managing Director at FD Stonewater, a commercial real estate brokerage, investment, and development firm focusing on Federal and state properties. 

Norman formerly served as Commissioner of the Public Buildings Service for the US General Services Administration. In his role, he led the nationwide asset management, construction, design, leasing, management, and disposal of approximately 374 million SF of government-owned and leased space, all while overseeing an annual budget of nearly $10 billion and a workforce of 6,000.

Before GSA, Norman was Acting Controller at the Office of Management and Budget (OMB), responsible for Federal financial management and management of Federal commercial real estate. Mr. Dong also was CFO for the Federal Emergency Management Agency (FEMA) from 2008–2012. 

He earned his Bachelor’s degree from Yale University and his Master’s degree from the John F. Kennedy School of Government at Harvard University’s

About Crexi:

Crexi is a commercial real estate (CRE) property marketing and deal management platform that combines an active marketplace for sale and lease properties with powerful property marketing, deal management, and market intelligence tools designed to help brokers, buyers, and tenants eliminate time-consuming processes and close deals faster. 

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Shanti Ryle
Shanti Ryle

Content Marketing Manager

Shanti leads Crexi's content marketing strategies with 7+ years of content development experience, creating everything from blog posts to award-winning podcasts. Previously, she worked on content teams at Snapchat, Weedmaps, and HopSkipDrive as well as developed copy, articles, and media for freelance publications.

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