Darrell Crate, president & CEO of Easterly Government Properties, Inc. (NYSE: DEA), sat down for a video interview during Nareit’s REITweek: 2025 Investor Conference in New York City on June 2-5.
Crate emphasized that 2025 was shaping up to be a pivotal year for the company due to shifting federal priorities around real estate efficiency. He highlighted how the Department of Justice’s push for cost-effectiveness was aligning with Easterly’s strengths. “What’s super exciting is that the government’s now thinking for the first time economically about its buildings,” Crate said.
Crate noted that investor conversations have focused on how these changes present long-term growth prospects rather than risk. “DOGE (the Department of Government Efficiency) is a tailwind for us and not a problem,” he explained, referencing the federal government’s initiative. He pointed to a renewed lease in Aberdeen, Mississippi that, for the first time, includes “bumps” every five years—marking a transition toward more commercial-style agreements.
Crate also discussed the challenges of outdated government-owned buildings, which average 49 years in age, and the growing preference for leasing newer, more tech-friendly facilities as a cost-saving measure.