P
resident Trump has set a deadline of April 14th for federal agencies to propose plans to relocate out of Washington, D.C. and move to "less-costly" areas. The administration is also requiring agencies to inventory their real property and leases, with the General Services Administration tasked with creating a disposal plan for unnecessary real estate.

    A mass relocation could significantly impact the commercial real estate market in Washington, D.C., where federal employees make up a large portion of the regional workforce. Agency heads have been given until April 14th to come up with plans for their departments to leave the nation's capital.

    The administration has also ordered agencies to submit property inventories within seven days and lease terminations within 30 days. The General Services Administration will then have 60 days to develop a plan to dispose of any unnecessary real estate. This move could create winners and losers across the country, with office owners in the nation's capital region at risk due to the significant impact on the commercial real estate market.

    The Trump administration is on a cost-cutting spree in federal real estate, with 254 terminations, $114.7 million in annual lease value canceled, and total savings of $255.3 million reported as of Wednesday. However, some calculations have been called into question.