GSA plans to sell hundreds of federal buildings
Employees of General Services Management (GSA) is told to sell 500 Plus Federal Government US buildings, sources tell Wired.
Wired has obtained the full list of GSA buildings. All of these are designated as “core” or “non-core” assets. Of the over 1500 assets listed, more than 900 are designated as “cores” and are protected from sales for the time being. The “core” designation applies to buildings such as federal courts, border inspection stations, and law enforcement facilities.
The GSA plans to sell most of the remaining 500 or more buildings, according to sources that were allowed to be anonymous for fear of retaliation.
A note on the building listing states that the agency’s intention is ultimately to “a 50% reduction in the size of the real estate footprint owned and 70% reduction in the number of buildings. The reduction is the private lease market We will focus on general office spaces outside the core of the portfolio that can be exchanged if necessary. As we move forward, all non-core buildings will be disposed of and that tenant will be transferred to leases.”
GSA, a Important government agencies It manages federal buildings and technology and serves staff Elon Musk’s companionIncludes Nicole Hollander from X Staff. He has a high level of agency access and an official government email address. Thomas Shedd, the recently installed director of Technology Transformation Services within GSA, worked as a software engineer for eight years at Tesla. Wired also reported many young engineers Has connections with mask companies and has little or no government experience with many government agencies, including the GSA.
According to the list, buildings destined for blocks John C. Kruchinsky Federation Building In Chicago, which houses the satellite offices of the Department of Labor, the Drug Enforcement Bureau, the Internal Revenue Service, the Probation Bureau, and Democrats Illinois Sens. Tammy Duckworth and Dick Durbin offices. The building also has a wider cultural significance. It was designed by the famous architect Ludwig Mies van der Rohe and features the iconic Alexander Calder sculpture.
The John F. Kennedy Federal Building in Boston is also listed as a “non-core” asset. In addition to this building I live in many government agenciesalso owns an office for Massachusetts Democrat Sens. Elizabeth Warren and Edward Markey.
Ed Jones Federal Building in Jackson, Tennessee holds the offices of Republican Sens. Marsha Blackburn and Bill Hagerty, and Republican Sens. David Kastoff is also listed as a “non-core” asset .
“By optimizing GSA’s real estate portfolio, we can help reduce postponed maintenance debt, help federal employees return to offices, and take advantage of stronger private/government partnerships to manage the future workforce. It will be prioritized,” reads GSA press release issued today.
The GSA did not immediately reply to requests for comment.
“The intention of the GSA and the entire federal government is to reduce the number of old buildings owned with high debt. This is to support a more flexible, more modern, new leased building, and teams. They have a way to work together. Shedd spoke to TTS staff at a meeting on February 5th, according to audio obtained by Wired.
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Slimming federal real estate portfolio and associated maintenance costs Agent priorities Even before Donald Trump took office. Many buildings are not suitable for modern office layouts, underutilized or inappropriate. In 2023, the GSA sold a total of five buildings and identified 23 additional properties for future sales.
Now, that target looks a few orders of magnitude higher. However, the commercial real estate (CRE) market is vulnerable, but the aftermath of Covid and the rise of remote work have reduced assets value. Last summer for Harvard Business Reviews, OP-Ed with one Chief Economist I warned Banks with a substantial CRE portfolio can face exposure from looming loan obligations and fail, leading to a financial crisis. It has hundreds of new buildings placed in the market, many in the centre of an already struggling city, putting even more instability at stake.