• Admin

GovGuam lease cost doubled in 10 years

Several GovGuam offices are leasing space at ITC building.

From 2004 to 2015, the government of Guam doubled its annual cost for leasing commercial space going from $6.8 million to $12.5 million, according to the Office of Public Accountability's report released Tuesday.

The burgeoning lease cost has prompted the OPA to revisit its recommendation to GovGuam made more than 10 years ago.

“Since 2005, the Office of Public Accountability urged the Legislature to begin evaluating whether or not it is feasible to initiate long-term planning to acquire or build facilities to house government entities for the future,” OPA said. “In the audit report, OPA stated that the amount of money spent on leases could be used to purchase or build office space to house government entities.”

In more than a decade, OPA said, the average cost per sq. ft. more than doubled from $1.15 per sq. ft. in 2004 to $2.11 in 2015.

A majority of GovGuam’s commercial leases were for office space at $11.8 million, while other commercial lease space was $692,000 in fiscal 2015.

The Top 10 entities with the highest lease costs for office space accounted for 80 percent, or $9.4 million of the total annual lease costs for GovGuam in 2015.

The Guam Customs and Quarantine Agency had the highest annual lease cost for office space at $2.8 million, nearly 82 percent