The U.S. Department of Justice (U.S. DOJ) Facility in Paducah, Kentucky is a 2022 construction, build-to-suit development that is 100% leased to the U.S. General Services Administration (U.S. GSA) for a new 15-year lease term. This facility houses three U.S. Federal Government law enforcement agencies operating within the U.S. DOJ – Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA), and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Comprising 9,861 square feet, the facility features exceptionally high levels of security and specialized improvements, designed and constructed to meet the specific and unique needs of each of the occupying agencies.
Providing an essential base of operations for three federal law enforcement agencies, the U.S. DOJ Facility in Paducah houses the FBI, occupying 3,851 square feet, DEA, occupying 3,320 square feet, and ATF, occupying 2,690 square feet. FBI, DEA, and ATF create a highly resilient agency roster, and an assemblage of three of the most sought-after tenants within the field of federal real estate investments. The requirements of these groups for specialized space and extensive tenant improvements are prohibitive to replicate in both cost and functionality, thus resulting in captive tenancy. Over $2.2 million in Tenant Improvements were funded by the agencies within the U.S. DOJ Facility (approx. $225 per foot), demonstrating significant tenant investment in this location.
The U.S. GSA lease is guaranteed by the full faith and credit of the United States of America, featuring an Aaa rating from Moody’s Investor Services and unrivaled income security. Additionally, the U.S. GSA has a long-standing reputation as a tenant with one of the highest possible renewal probabilities in the commercial real estate industry. Historical data published by the GSA regarding their portfolio of over 8,000 leases nationwide reflects a retention rate which typically exceeds 95%, and studies of this data indicate that GSA occupancy of single-tenant facilities result in an occupancy period which typically exceeds 35 years.