realestate

Federal Real Estate Footprint Contracts in DC: A Shrinking Presence

Trump Administration Moves Swiftly to Sell Federal Buildings, Chair Says

F
ederal Real Estate Empire Under Scrutiny in DC

    A seismic shift is underway in the nation's capital, as President Trump's administration accelerates efforts to shed federal office buildings and terminate hundreds of leases. This move has sent shockwaves through the D.C. area, where federal workers are bracing for change.

    Rep. Marjorie Taylor Greene, chair of the House Subcommittee on Delivering on Government Efficiency, led a field hearing in DC examining the federal real estate portfolio. "Taxpayers shouldn't be footing the bill for government empires," she said, praising the administration's swift action to sell off federally owned buildings and discontinue leases.

    The General Services Administration is spearheading Trump's goal of reducing federally owned and leased property by 50%. So far, nearly 700 leases have been canceled, saving an estimated $400 million. The list of terminated leases includes a D.C. building at 1875 Pennsylvania Ave., home to the parent company of Voice of America.

    Greene and Republicans on the subcommittee took aim at excessive spending on government buildings, including expensive furniture and art purchases. They also criticized the Centers for Disease Control and Prevention's $230,000 investment in solar-powered picnic tables during the pandemic.

    However, David Marroni, lead of the physical infrastructure team for the Government Accountability Office, cautioned against rushing federal office sales. "There is a risk of moving too fast," he said, urging "deliberate planning" to balance speedy reductions with tenant relocation costs.

    A 2023 GAO survey revealed that 17 federal agencies reported using less than 25% of their office space. Ranking Democrat Rep. Melanie Stansbury criticized the administration's hasty efforts to dispose of properties, citing concerns about the value of prime real estate in Washington D.C.

    D.C. Del. Eleanor Holmes Norton spoke out against relocating federal agencies from the District, arguing it would harm operations and waste taxpayer dollars. The Trump administration has proposed moving some agencies to other parts of the country to save money, but Norton recently introduced a bill prohibiting such relocations without congressional approval.

Federal real estate footprint shrinks in Washington D.C. with reduced presence.