By the numbers: The 443 buildings—mostly offices—originally included various agency headquarters, including the Department of Justice, the Department of Energy, the FBI, and even the GSA’s headquarters.
- The GSA reduced the list of “non-core” buildings to around 300 before removing it.
- While some of the buildings could have been included in error, many observers noted much of the real estate is outdated and needs over $8 billion in capital improvements.
Go deeper: The effort to sell underused or unused federal real estate will likely continue, but the process is subject to certain federal requirements mandated by law. GSA’s website lists the major considerations as part of this process, as summarized below. Not all requirements apply to every property.
- Excess Property: When a federal agency no longer needs a property to carry out its program responsibilities, it reports this property as “excess” to its needs.
- Federal Transfer: GSA first offers excess property to other federal agencies that may have a program need for it. If another federal agency identifies a need, the property can be transferred to that agency.
- Surplus Property: If there is no further need for the property within the federal government, the property is determined “surplus” and may be made available for other uses through public benefit conveyances (PBCs), including efforts to help the homeless.
- Homeless Conveyance: The U.S. Department of Housing and Urban Development requires that any federal property is first considered to house the homeless before any other public benefit conveyance can be considered.
- Public Benefit Conveyance: As a PBC, the price of the property can be discounted substantially (up to a 100% reduction in fair-market value) if it is used for a specific public use that qualifies for a PBC through a partner federal agency.
- Negotiated Sale: GSA can negotiate a sale at appraised fair market value with a state or local government if the property will be used for another public purpose.
- Public Sale of Property: If state and local governments or other eligible non-profits do not wish to acquire the property, GSA can dispose of surplus property via a competitive public sale (sealed bid or auction).
The bottom line: Cracks are emerging in the Musk/DOGE/Trump/GOP relationships, yet the effort remains popular in the party.
- The sale or lease cancellation of real estate may be among the easiest paths to identify and execute when it comes to a larger cost-cutting effort.
- However, the impact beyond the Washington, D.C., region could generate pushback from members of Congress if key facilities or programs in their districts are targeted.
Contact David McCarthy (dmccarthy@crefc.org) with any questions.