T
he Trump administration's plan to shrink the federal government, initially backed by Elon Musk, aims to create a leaner workforce and shift economic influence away from traditional government hubs. The effort involves relocating agencies out of Washington, D.C., to less-costly locations, with an executive order requiring agencies to map out their exits by mid-April.

    The Department of Government Efficiency, led by Musk, has reported some successes, including 254 terminations and $114.7 million in annual lease savings. However, real estate professionals are questioning the accuracy of these figures, citing leases that were set to expire anyway.

    Despite gaining traction, the effort faces significant logistical and political challenges. Previous downsizing attempts have run into resistance from Congress, unions, and local economies reliant on government jobs. Restructuring federal agencies requires extensive legal and logistical maneuvering, making it a complex task.

    In Chicago, where Trump and Musk aim to cut the federal footprint by 50 percent, security constraints and market challenges pose significant hurdles. Developers are hesitant to take on buildings with potential restrictions on sightlines into court facilities, while lease terminations can lead to expensive lawsuits or settlement negotiations.

    Meanwhile, cities vying to attract relocated federal agencies may see a boost, as secondary markets with lower costs of living and ample office space could emerge as winners in the shake-up. Beyond the relocation efforts, other news includes a lawsuit against Douglas Elliman and its former CEO Howard Lorber, allegations that Trump's plan to replace EB-5 with a "golden visa" will face significant financial and regulatory hurdles, and Charles Cohen's attempt to settle his $187 million judgment with Fortress Investment Group.