Easterly Government Properties Awarded Lease to Develop 50,777 RSF Federal Courthouse in Flagstaff, Arizona
Easterly Government Properties, Inc. (NYSE: DEA) secures a 20-year lease for a 50,777 RSF federal courthouse in Flagstaff, Arizona, marking its first net zero development project. The state-of-the-art courthouse will be built to Level III security standards and LEED Silver certification, showcasing Easterly's commitment to ESG principles. The project is set to commence in late 2024 or early 2025, with an expected completion in the first half of 2026.
The announcement of Easterly Government Properties' first net zero development project signifies a notable pivot towards sustainability within the real estate investment trust (REIT) sector. The focus on creating a LEED Silver, net zero facility aligns with the increasing investor demand for environmentally responsible investments and can be expected to enhance Easterly's Environmental, Social and Governance (ESG) profile. This shift not only caters to the ethical considerations of investors but may also offer long-term cost savings through energy efficiency.
Moreover, the integration of Crime Prevention Through Environmental Design (CPTED) principles demonstrates a holistic approach to building design that merges security with environmental consciousness. The commitment to such standards can potentially lead to a competitive advantage in securing government leases, which often have stringent requirements for sustainability and safety.
It is essential to monitor the project's progress, as any delays or cost overruns could impact Easterly's financial performance. However, successful execution could set a precedent for future projects and possibly attract additional government contracts, thereby reinforcing the company's market position.
The 20-year non-cancelable lease for the new Federal courthouse in Flagstaff, Arizona, represents a significant long-term income stream for Easterly Government Properties. The security of such a lease with the U.S. Government provides a stable financial outlook for the company and is a strong indicator for potential investors regarding the reliability of future earnings.
The specialized nature of the property, catering to the specific needs of the judiciary system, including secured parking , sallyports and separate paths of travel for different user groups, indicates a niche expertise in government property development. This expertise could justify a premium in the company's valuation due to the specialized barriers to entry and the potential for similar future developments.
From a market perspective, the announcement could influence Easterly's stock performance positively, considering the long-term lease's impact on the company's revenue stability. The project's anticipated delivery date in 2026 should be factored into the investment outlook, as it will be a few years before the project contributes to the company's financial results.
The construction of a LEED Silver, net zero courthouse by Easterly Government Properties is a significant undertaking that reflects broader industry trends towards sustainable building practices. The use of Level III security requirements and natural stone cladding implies a high standard of construction that could influence subcontractor selection, materials sourcing and overall project costs.
Given the complexity of the project, it is crucial to assess the potential risks associated with the construction phase, such as supply chain disruptions or increased material costs, which could affect the project's timeline and budget. The involvement of specialized contractors familiar with CPTED principles and high-security construction could mitigate some of these risks.
Understanding the scale and scope of this project, it is likely to have a localized economic impact during the construction phase, offering job opportunities and potentially stimulating the Flagstaff area's economy. The success of this project could serve as a model for future sustainable government buildings, potentially influencing construction standards within the sector.
03/04/2024 - 07:00 AM
~ Easterly’s First Net Zero Development Project ~
WASHINGTON --(BUSINESS WIRE)--
Easterly Government Properties, Inc. (NYSE: DEA) (“Easterly”), a fully integrated real estate investment trust focused primarily on the acquisition, development and management of Class A commercial properties leased to the U.S. Government, announced today that it has been awarded a 20-year non-cancelable lease for a 50,777 rentable square foot Federal courthouse in Flagstaff, Arizona (“JUD - Flagstaff”).
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240304846914/en/
Easterly Government Properties, Inc. (NYSE: DEA) was awarded a lease to develop a 50,777 RSF federal courthouse in Flagstaff, Arizona . This state-of-the-art courthouse marks Easterly's first net zero development project. Once complete, a 20-year non-cancelable lease will commence with the United States Government. (Photo: Business Wire)
JUD - Flagstaff is expected to be a state-of-the-art, three-story courthouse that is constructed according to Level III security requirements. The steel framed, natural stone clad facility is designed utilizing the Crime Prevention Through Environmental Design (CPTED) principles and incorporates a number of important safety features, including perimeter fencing, natural and constructed physical barriers, required setbacks, and building security.
Notably, JUD - Flagstaff is intended to be a LEED Silver, net zero facility, the first of its kind for the Easterly portfolio, thus strengthening its commitment to maintaining a strong ESG mission. The courthouse provides for secured parking under the building for the judges and U.S. Marshals and features a sallyport to transport defendants via a separate pathway up to prisoner intake and the courtrooms on the second and third floors, respectively. Three independent paths of travel are constructed throughout the entire facility to ensure defendants, judges, and the public never interact with one another outside the two District and Magistrate courtrooms.
“We are thrilled to announce this partnership with the U.S. Government,” said Darrell Crate, Easterly’s Chief Executive Officer. “We believe being awarded a 20-year non-cancelable lease in exchange for delivering a state-of-the-art, mission-critical courthouse represents our recognized definable edge in our ability to develop in this specialized market. We look forward to working with the government and serving as their trusted partner for years to come.”
Sitework is slated to commence in late 2024 or early 2025 with an anticipated delivery date in the first half of 2026. Once delivered, a brand-new 20-year firm term lease will commence with the General Services Administration for the benefit of the United States Judiciary.
About Easterly Government Properties, Inc.
Easterly Government Properties, Inc. (NYSE:DEA) is based in Washington, D.C. , and focuses primarily on the acquisition, development and management of Class A commercial properties that are leased to the U.S. Government. Easterly’s experienced management team brings specialized insight into the strategy and needs of mission-critical U.S. Government agencies for properties leased primarily through the U.S. General Services Administration (GSA). For further information on the company and its properties, please visit www.easterlyreit.com .
This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as “believe,” “expect,” “intend,” “project,” “anticipate,” “position,” and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to those risks and uncertainties associated with our business described from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K filed on February 27, 2024. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of the date of this release, and we undertake no obligation to update any forward-looking statement to conform the statement to actual results or changes in our expectations.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240304846914/en/
Easterly Government Properties, Inc.
IR@easterlyreit.com
Source: Easterly Government Properties, Inc.
What is the ticker symbol of Easterly Government Properties, Inc. mentioned in the press release?
The ticker symbol is DEA.
Where is the 50,777 RSF federal courthouse being developed by Easterly located?
The courthouse is being developed in Flagstaff, Arizona.
What type of security standards will the courthouse be built to?
The courthouse will be built to Level III security standards.
What certification is the courthouse expected to achieve?
The courthouse is expected to achieve LEED Silver certification.
When is the expected completion date for the courthouse project?
The project is expected to be completed in the first half of 2026.
