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That means that the rent checks will be steady and reliable. Government real estate, entering gross leases on behalf of agencies with flat rents and annual expense reimbursements over an established base as determined by Consumer Price Index changes plus 100% of real estate tax increases over a base amount.GSA has focused on reducing the amount of space per federal employee, challenging lease renewals if underutilized federally owned properties are available, and meeting security requirements and green initiatives.The Primary GSA lease terms tend to be for 10 20 years with renewal options for 5 years (while 3 5 year renewal terms have been prevalent the last few years, GSA is focused on executing minimum lease terms of 10 years for all GSA lease renewals).GOV's second largest category is the state based tenants representing 22.4% of the portfolio.Most state leases are full service gross with periodic rent increases and no reimbursement of operating expenses. Some state leases are subject to annual budget appropriations, which in GOV's experience rarely result in early terminations..

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