GSA properties are properties leased to or built specifically for agencies of the United States Government. The General Services Administration (GSA) administers these leases on behalf of the various government agencies. Part of the GSA leasing program involves build-to-suit, privately owned facilities leased to the federal government on a long term basis.
GSA properties may provide a secure investment by virtue of the length of leases (10 to 20 years) and the stability of the leaseholder (the federal government). In contrast to owning commercial property leased to a private entity, GSA properties provide unmatched security. Much as a Treasury is safer than a corporate bond because of its lower default risk, a GSA property possesses greater security than a traditional commercial property. Backed by the stability and guarantee of the federal government, these leases are shielded from the risk of bankruptcies and other adverse corporate events that can cause missed lease payments or defaults. Salus also endeavors to protect against the risk that tenants will relocate by investing in state-of-the-art, environmentally friendly, and mission-critical facilities that are not only attractive for a tenant to remain in long-term, but also possess characteristics that may render it too costly or otherwise prohibitive for federal government agencies to move.