The U.S. General Services Administration (GSA) has announced its plan to dispose of eight federally owned properties, which could save the federal government up to $475 million over the next decade. This move is part of the agency’s ongoing efforts to streamline the federal real estate footprint and reduce costs.

On Wednesday, the GSA took initial steps toward selling or repurposing properties, including post offices, courthouses, and office buildings located in Vermont, Florida, Indiana, and other areas. GSA Administrator Robin Carnahan emphasized the agency's commitment to optimizing the federal buildings portfolio, benefiting both local communities and taxpayers.

The properties will not be officially offloaded until the GSA gathers input from local stakeholders and ensures that each building is repurposed productively. The agency will also coordinate with federal tenants to create a relocation plan and budget. Where feasible, the GSA may consider redeveloping the properties into housing.

This latest move follows findings from the U.S. Government Accountability Office in fall 2023, which revealed that federal agency headquarters were using less than 25% of their office space. In response, the GSA has been actively shedding properties and adjusting leases. In November 2023, the GSA announced plans to dispose of 23 properties across 16 states, including courthouses and post offices.

Prior to Wednesday’s announcement, the GSA had already slated three properties for disposal in 2024, including a Department of Energy building in Tennessee, the historic Liberty Loan Building in Washington, D.C., and an office building in Atlanta.

Carnahan also noted that the GSA could expedite the process if it had full access to the Federal Buildings Fund, which is used for property management and construction activities. This fund is generated from rental income from tenants in GSA-controlled spaces.

If the disposal process moves forward as planned, the GSA could reduce its real estate footprint by 1.5 million square feet and save up to $475 million over 10 years. With other recent property reductions, the GSA could cut inventory by 6 million square feet, potentially avoiding up to $1.8 billion in costs over the next decade.