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About Enhanced Use Leasing

Title 10 USC, Section 2667, of the National Defense Authorization Act, authorizes the Department of Defense to make underutilized, non-excess real property available for lease. In return, the government can obtain consideration in cash or in-kind. This authority enables the Navy to maximize the utility and value of installation real property and provide additional tools for managing the installation's real estate assets to achieve business efficiencies. Specifically, installations can, among other things:

  • Enter into long-term leases, providing greater flexibility for facility use and reuse, including:
    • Office space
    • Warehouses/industrial buildings
    • Laboratories/Research and Development facilities
    • Energy Cogeneration Plants
    • Hotels/temporary lodging/conference centers
    • Land (underutilized)
  • Receive cash or in-kind consideration for income on leased property, which can be used for:
    • Alteration, repair, improvement of property or facilities
    • Construction or acquisition of new facilities
    • Lease of facilities
    • Facilities operation support
  • Offer base commanders and the Navy numerous benefits:
    • Enhances mission performance through cooperative efforts with private developers
    • Improves utilization of property
    • Reduces base operating costs through improved business practices
    • Fosters cooperation between the military services, the private sector and the local community
    • Enhances mission performance through in kind consideration for reinvestment of resources back to the mission or base
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