H.R. 7388: Smart Space Act of 2026

The Smart Space Act of 2026 aims to initiate a process for identifying ways to finance the construction and renovation of public buildings at lower costs for the federal government. The key components of the bill include:

Consultation Meetings

Within 90 days of the law's enactment, the Administrator of General Services is required to hold consultation meetings. The purpose of these meetings is to explore alternative financing options for public building projects. These meetings will involve:

• Experts in private commercial real estate
• Experts in federal real estate
• State real estate experts (as available) who have experience in leveraging private financing

Recommendations and Reporting

By 120 days after the law is enacted, the Administrator must submit a report to the President which includes:

• Recommendations on the best types of public-private partnerships and financing methods for public buildings
• A list of suggested projects suitable for these financing methods, including specific partnership types recommended for each project

Criteria for Recommended Projects

The projects recommended for funding must meet certain criteria, such as:

• Supporting essential federal government missions where long-term federal space usage is critical
• Facilitating consolidations or relocations of federal departments to reduce costs associated with inefficient or underutilized spaces
• For standard office spaces, achieving a minimum utilization level of 60% as defined in existing legislation

Transparency and Public Accessibility

The Administrator must ensure transparency in the process by:

• Submitting the report to congressional committees and making it publicly available online
• Providing ongoing updates about the process, including timelines and milestones on the General Services Administration's website
• Notifying the President and Congress of any delays in the project timeline
• Holding public meetings that are open to all and not restricted under certain formalities of government meetings

Approval and Accountability

The President has the authority to direct the Administrator to proceed with projects from the recommended list, contingent on future budget appropriations. Approved projects must comply with existing laws and include terms that ensure accountability and performance in public-private partnerships.

Definitions

The bill provides definitions for key terms such as:

• Alternative financing and public-private partnerships: These may involve agreements where a non-federal entity takes on responsibilities related to design, construction, financing, operation, and maintenance of a public building.
• Public building: Defined according to existing federal laws.

Relevant Companies

• PLD (Prologis, Inc.) - As a major player in commercial real estate, Prologis could be directly involved in partnerships for new public building developments.
• CBRE (CBRE Group, Inc.) - This commercial real estate services company might provide advisory services related to private financing solutions for federal building projects.
• GLPI (Gaming and Leisure Properties, Inc.) - While primarily in the gaming sector, GLPI’s expertise in property management and federal partnerships could lead to involvement in financing arrangements.