HR7388-119

What This Bill Does

The Smart Space Act of 2026 directs the Administrator of General Services to convene consultation meetings within 90 days of enactment. The meetings must identify alternative financing solutions for construction or renovation of public buildings and for work needed to prepare public buildings for disposal, with the goal of reducing federal costs.

GSA must include experts in private commercial real estate, federal real estate, and, when available, state real estate experts experienced with using private financing for public buildings and facilities. Within 120 days of enactment, GSA must send the President recommendations on public-private partnerships and alternative financing methods best suited to federal public-building needs.

The report must also include recommended public-building projects and specify which financing methods or partnership types should be used for each project. Recommended projects must serve core federal missions where long-term federally owned space is critical, support consolidations or relocations out of costly, inefficient, and underutilized space that GSA intends to sell or dispose of, and, for standard office space, meet at least 60 percent building utilization.

Who Benefits and How

GSA public buildings managers benefit from a formal process to identify alternative financing and public-private partnership options. Federal agencies in underutilized buildings benefit if projects help consolidate or relocate them into more efficient space. Taxpayers benefit if alternative financing reduces federal building costs or speeds disposal of inefficient property. Private real-estate finance experts benefit from a direct consultation role. Commercial real estate partners may benefit from future public-private partnership opportunities. The President benefits from a project list and financing recommendations within 120 days.

Who Bears the Burden and How

GSA public buildings staff must organize consultations, evaluate financing options, identify recommended projects, and prepare the 120-day submission. Federal agencies occupying underused space may need to participate in consolidation or relocation planning. Private and state real-estate experts must provide technical input on financing options. GSA disposal staff must assess buildings that need preparation for sale or disposal. Agencies seeking to remain in low-utilization office space may face pressure to consolidate.

Key Provisions

• Requires GSA consultation meetings within 90 days on alternative financing for public buildings.
• Requires participation from private commercial, federal, and available state real-estate experts.
• Requires recommendations to the President within 120 days.
• Requires recommendations on public-private partnership types and alternative financing methods.
• Requires a project list identifying which financing method fits each public-building project.
• Requires recommended projects to support core federal missions and long-term federally owned space where needed.
• Requires consolidation or relocation out of costly, inefficient, underutilized space and at least 60 percent utilization for standard office projects.