P
resident Trump is targeting government waste by putting 443 federal properties spanning 47 states, DC, and Puerto Rico up for sale. This move aims to reduce the bloated federal workforce and costly buildings they occupy, potentially saving taxpayers $430 million annually in upkeep costs.
The list includes prime commercial hubs hosting local and regional offices for various agencies, such as Agriculture, Energy, Health and Human Services, and Veterans Affairs. Even the General Services Administration's own headquarters is on the chopping block. About a third of these properties are clustered in the DC metro area, but the list stretches far and wide.
The sale could dump nearly 80 million square feet of commercial space onto the market, equivalent to 12 times the Pentagon's footprint. The properties range from historic customs houses to newer spots like the John A. Volpe Transportation Systems Center in Cambridge, Massachusetts.
However, not all properties are immediately for sale. Michael Peters, head of the Public Buildings Service, said that just because a property is on the non-core list doesn't mean it's for sale. But if someone makes an offer, they will consider it.
The commercial real estate scene is struggling due to high interest rates and the COVID-19 pandemic, with office prices plummeting 36% from their 2022 peak. Converting old federal buildings into residential units is also a major obstacle due to construction and financing costs.
Trump's administration has been trimming its property fat for over a decade, offloading over 1,000 properties totaling 24 million square feet since 2015. The Biden administration even floated selling eight buildings in December, but any sales come with red tape and require offers from other agencies or non-profit organizations before private buyers can purchase them.
The sale of these properties could have significant implications for the DC office market, which is already struggling with high vacancy rates. Trump's adviser Elon Musk has been vocal about reducing government waste, claiming he axed 748 leases for 9 million square feet of privately rented space.
