Feds to dispose of 23 buildings as GSA seeks to trim office space to match fewer workers

The federal government’s chief landlord agency said Wednesday it has identified 23 properties it will try to dispose of because the pandemic and more lenient telework policies have turned offices into ghost towns.

The General Services Administration said it could cut 3.5 million square feet and save more than $1 billion over 10 years in “cost avoidance” by ditching the unused space.

“GSA is committed to right-sizing and optimizing the federal buildings portfolio in ways that benefit local communities and taxpayers,” said GSA Administrator Robin Carnahan.

Ms. Carnahan’s announcement comes just days before she is scheduled to face Capitol Hill, where lawmakers have been showing impatience over paying for so much office space that federal workers just aren’t using anymore.

GSA acts as the main agency for holding office space for civilian agencies in the Executive Branch. Its portfolio includes about 370 million square feet nationwide.

Identifying the 23 properties is just the first step.

Now GSA must work with local communities to try to figure out what to do with them. Options include selling or exchanging them within the federal government or to state or local governments, or selling to the general public.

The 23 buildings include two in the District of Columbia: The Webster School Building and the sprawling Nebraska Avenue Complex, which was the headquarters for the Homeland Security Department until it moved into a massive complex across the Anacostia River in the city’s southeastern quadrant.

California, Massachusetts, Missouri and Tennessee each also have two buildings slated for disposal. Texas has three.

Wyoming, Vermont, New York, New Mexico, New Jersey, Illinois, Hawaii, Florida, Arkansas and Alabama each have one building on the list.

GSA said it divested five properties over the last year, and in the current fiscal year it will finish the divestment of six properties previously announced.

How the government uses its space is always a thorny issue, but it has become deeply divisive in recent years as the pandemic banished workers from buildings, and they have been slow to return.

The Biden administration has begged agencies to get people back as much as possible, but employees — and the powerful unions that represent them — are in many cases resisting.