GSA accelerates efforts to right-size federal real estate with plans for 3.5 million square feet in reductions and $1 billion in cost avoidance

November 08, 2023

GSA announces first step in disposition process for up to 23 properties in its federal real estate portfolio

WASHINGTON — Today, the U.S. General Services Administration (GSA) announced that it has identified 23 properties to begin the disposition process as it accelerates its efforts to right-size and modernize the federal buildings portfolio.

Today’s announcement represents a potential reduction of 3.5 million square feet and more than $1 billion in estimated cost avoidance over 10 years. This is the first step in GSA’s disposal process, under which the properties could be transferred, exchanged, or sold to a federal, state, or local entity, or to the public, after robust input and engagement with stakeholders.

The agency recently testified before Congress on the need to optimize the federal portfolio. This involves reinvesting in many buildings the federal government already owns (by providing GSA with full access to the Federal Buildings Fund [PDF - 2 MB]) while also reducing reliance on costly leases and moving underutilized and underperforming assets out of the federal portfolio. These combined efforts will help increase occupancy in federally owned assets, reduce the overall federal footprint, and provide significant taxpayer savings.

“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. “GSA and our agency partners will continue to assess space needs and accelerate the disposition of federal buildings that are underperforming, underused, or otherwise don’t use taxpayer dollars effectively.”

GSA will be working closely with customer agencies whose spaces are affected by disposition decisions, which are aimed at ensuring agency workforces have safe, comfortable, and efficient workspaces that empower employees, advance agency missions, and ensure taxpayer dollars are used responsibly. GSA’s FY 2024 budget includes funding needed to relocate customer agencies into GSA-controlled federally owned space as part of the disposition process.  

GSA will also coordinate with communities and local officials to keep them informed of the disposition process—including opportunities for engagement—with the goal of meaningful continued use of properties, such as advancing local economic development and employment.  

“GSA’s robust process includes ongoing dialogue with local communities and thoughtful planning to help ensure we maximize the benefits of new uses and minimize any potential adverse impacts,” said GSA’s Public Buildings Commissioner Elliot Doomes. “We look forward to working with our customer agencies and local communities to make the federal buildings portfolio more efficient and effective, while seizing opportunities to advance local development goals.” 

GSA is responsible for promoting effective use of federal real property assets, including disposing of property that is no longer mission-critical to federal agencies. The process to identify a property for disposition, report the property excess, and then convey or sell the property typically takes a few years. Throughout that process, GSA coordinates with tenants to plan and budget for relocation, and with the local community to better understand and address potential concerns and/or objectives. The timing of dispositions is often dependent on the availability of funding for the agencies that occupy properties to relocate to other GSA-controlled federally owned space or to leased space, as applicable. 

Today’s announcement builds on GSA’s record of driving efficiencies and savings throughout its portfolio. GSA divested of five properties in FY23 and in FY24 GSA plans to complete the disposition process for an additional six properties that were previously announced. Over the past decade, GSA has helped to reduce the footprint of tenant agencies housed in office buildings in GSA’s custody and control by disposing of almost 12 million owned square feet and reducing 18 million square feet of leased space. Since 1987, GSA has conveyed over $3 billion in properties, about one third of which has been conveyed to state or local governments or nonprofits.

The 23 properties that will begin the disposition process are:

• Huntsville Post Office and Courthouse - Huntsville, AL. 
• George Howard, Jr. Federal Building and Courthouse - Pine Bluff, AR.
• John F Shea Federal Building - Santa Rosa, CA.
• Frank Hagel Federal Building - Richmond, CA.
• Nebraska Avenue Complex - Washington, DC.
• The Webster School Building - Washington, DC.
• Fort Lauderdale Federal Building and Courthouse - Fort Lauderdale, FL.
• U.S. Customs Warehouse - Hilo, HI.
• William O Lipinski Federal Building - Chicago, IL.
• Captain JF Williams Coast Guard Building - Boston, MA.
• Hastings Keith FB - New Bedford, MA.
• Sammy Davis Federal Building - Overland, MO.
• 8930 Ward Parkway - Kansas City, MO.
• Bridgeton SSA Trust Fund Building - Bridgeton, NJ.
• GSA Motor Pool Site - Santa Fe, NM.
• Howard Street Garage - New York, NY.
• Joel W Solomon Federal Building and Courthouse - Chattanooga, TN.
• E Kefauver Federal Building - Nashville, TN.
• La Branch Federal Building - Houston, TX.
• Pearsall Federal Building and Post Office - Pearsall, TX.
• San Antonio Federal Building West - San Antonio, TX.
• 58 Pearl Street - Burlington, VT.
• Louisa Swain Federal Building - Cheyenne, WY.

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About GSA: GSA provides centralized procurement and shared services for the federal government, managing a nationwide real estate portfolio of nearly 370 million rentable square feet, overseeing about $87 billion in products and services via federal contracts, and delivering technology services that serve millions of people across dozens of federal agencies. GSA’s mission is to deliver the best customer experience and value in real estate, acquisition, and technology services to the government and the American people. For more information, visit GSA.gov and follow us at @USGSA.