Trump administration considers selling two-thirds of underused government office space

 The Trump administration is looking to sell two-thirds of the government's owned office space and end three-quarters of its rented office space, managed by the General Services Administration (GSA). Currently, the GSA leases over 149 million square feet of office space, costing about $5. 2 billion in annual rent. This initiative is part of the Senate Department of Government Efficiency (DOGE) program, which seeks to cut government waste and enhance efficiency.

The proposed changes will significantly affect urban areas, particularly Washington D. C. , where the GSA leases almost 10% of the local office market, about 35. 8 million square feet. Other major cities that will be impacted include New York City, Kansas City, Philadelphia, Atlanta, Los Angeles, Dallas-Fort Worth, Chicago, and Denver.

Elon Musk and Vivek Ramaswamy have been assigned by Trump to lead the DOGE, collaborating with the White House and Office of Management and Budget to implement structural reform and introduce a more entrepreneurial style to governance. They aim to streamline the federal government and address the issue of underused office space. A recent report pointed out that most major federal agencies in Washington D. C. are operating at less than half their capacity, with occupancy rates at about 12% in GSA-owned buildings.

The GSA has over 7,500 vacant buildings across the country and approximately 2,200 that are only partially occupied. Maintaining these properties is draining government funds. The potential sale or lease terminations could worsen the already struggling office market, as default rates on office mortgages have soared to record highs.

The GSA’s lease terminations would hit Washington D. C. the hardest, with 9. 6 million square feet of space generating about $1. 47 billion in annual rent set to be terminated in 2025. Other metropolitan areas total around 66. 3 million square feet of GSA-leased office space, with 18. 9 million square feet eligible for termination in the same year.

Additionally, the DOGE initiative aims to reduce the federal workforce by 75%, cut $2 trillion from federal spending, and eliminate various agencies, including the Consumer Financial Protection Bureau. Musk and Ramaswamy have proposed strict in-office attendance, relocation of agencies away from D. C. , abolishing outdated regulations, and securing authority to nullify unnecessary regulations.

However, Ramaswamy left the project before Trump's inauguration to focus on his campaign for governor of Ohio, believing his run will support DOGE's aim to lessen federal government power. 

https://www.naturalnews.com/2025-01-31-trump-sell-two-thirds-government-office-space.html