FOLLOW US

The U.S. government is considering selling a massive portfolio of 443 Government buildings across 47 states, the District of Columbia, and Puerto Rico. This move aligns with former President Donald Trump’s initiative to reduce the federal workforce and cut government expenditures.

 The General Services Administration (GSA) published an inventory of these "non-core" assets on Tuesday, marking a significant step toward shrinking government real estate holdings.

Among the properties listed are key commercial buildings that house local and regional offices for federal agencies. These offices provide essential services to taxpayers, Social Security recipients, farmers, and workers. The total space of these structures' spans nearly 80 million rentable square feet—equivalent to 12 times the size of the Pentagon.

The GSA estimates that the sale of these properties could result in more than $430 million in annual operational savings. Trump was expected to address this initiative in a joint session of Congress later that day.

Real Estate on the Market?

While these properties have not yet been officially put up for sale, the listing signals the administration’s intent to divest government-owned real estate.

"Just because something is on the non-core list doesn’t mean it’s for sale by any means," said Michael Peters, a former investment banker appointed by Trump to lead the Public Buildings Service. "But if someone put an offer on the table, we would evaluate it."

The shift toward remote work has also reduced the need for office space, leaving many major cities with rising vacancy rates. However, converting these commercial buildings for residential use poses challenges, especially with high construction and financing costs.

Aging Government Buildings

Many of the federal buildings in question are outdated and may require extensive repairs.

"The deferred maintenance is reflected in the condition of these buildings," Peters noted during a Public Buildings Reform Board meeting in January. "You know, if you toured many of them, you wouldn’t want to be there with your dog, much less with your work environment."

About one-third of the buildings on the list are located in the Washington, D.C. metro area. However, due to the concentration of federal agency headquarters, these properties represent a disproportionate share of the total square footage.

 Agencies with properties potentially up for sale include the Departments of Agriculture, Energy, Health and Human Services, Housing and Urban Development, Labor, Justice, and Veterans Affairs.

Historic Government Buildings Among the Listings

Some of the government’s most well-known properties are included in the proposed sale. The GSA even listed its own headquarters as a potential property for sale. The Trump administration also explored relocating agencies outside of Washington, D.C. to save on rent and salaries.

Other buildings eligible for sale include historic customs houses from the 19th century in cities like New Bedford, Massachusetts; Portland, Maine; and Norfolk, Virginia. These buildings once played a key role in collecting import duties that funded the federal government before income taxes were introduced.

The properties vary greatly in size, from the Department of Agriculture’s 4,500-room building in Washington—once the world’s largest office building before the Pentagon was built—to a mere 74-square-foot toll booth at the Good Neighbor International Bridge in El Paso, Texas.

Several buildings named after significant historical figures could also be on the market, including the John F. Kennedy Federal Building in Boston, the Speaker Nancy Pelosi Federal Building in San Francisco, the Rosa Parks Federal Building in Detroit, and the Martin Luther King Jr. Federal Building in Atlanta.

Sale and Leaseback Possibilities

In some cases, properties could be sold and then leased back to the federal government. According to Peters, the goal is to eliminate under-utilized space, lower maintenance costs, and centralize property management.

"Core" federal buildings, such as courthouses, laboratories, land ports of entry, and law enforcement offices, are typically exempt from sales. Additionally, buildings deemed "intrinsically significant," like the White House and the National Building Museum, are not considered for sale.

Trump adviser Elon Musk working with DOGE has drawn attention to government buildings and properties leased from private landlords. Musk took credit for canceling 748 leases covering over 9 million square feet, pointing out the inefficiency of maintaining empty buildings.

"Crazy that the government was just renting and paying for upkeep services of hundreds of empty buildings!" Musk stated on his social media platform last week.

As the government moves forward with its plans, investors and developers will be watching closely to see how these federal property sales unfold.