Government real estate comprises property owned by the state such as courthouses, ports, public libraries, post offices and educational-related buildings which includes state-owned schools and universities. Private interests participate in these public properties through public/private partnerships and hybrid models wherein private funds subsidize publicly-owned property. Properties guaranteed by government-backed debt can also be foreclosed on when in default and become government-owned property. Most real estate will be put back on the market for sale through live auctions or bids where the public can acquire these properties for their own. The government also can acquire private property for public use through eminent domain whereby the state provides just compensation in return for public purpose use.
Looking to the future
The government will continue to play its part in the real estate sector and will continue to be a presence in this industry. For example, HUD will likely play a bigger role in their affordable housing programs through new developments or additional subsidiaries to private real estate owners. Public/Private partnerships are expected to multiply in size and scope, notably in infrastructure, as both parties gain greater expertise and ease in collaboration.