• The Trump administration is considering the sale of two-thirds of the government’s owned office space and the termination of three-quarters of its leased office space, managed by the General Services Administration (GSA). The GSA currently leases over 149 million square feet of office space, paying nearly $5.2 billion in annual rent.
• The move is part of the Senate Department of Government Efficiency (DOGE) initiative, aimed at reducing government waste and improving efficiency.
• The proposed changes will have significant impacts on metropolitan areas, especially Washington D.C., where the GSA leases nearly 10 percent of the office market, spanning 35.8 million square feet. Other major affected areas include New York City, Kansas City, Philadelphia, Atlanta, Los Angeles, Dallas-Fort Worth, Chicago and Denver.
• Elon Musk and Vivek Ramaswamy were appointed by Trump to lead the DOGE, working with the White House and Office of Management and Budget to drive large-scale structural reform and create an entrepreneurial approach to government.

The Trump administration is considering shedding a substantial portion of the government’s massive office space portfolio, managed by the General Services Administration (GSA).

According to sources cited by the Wall Street Journal, the administration is exploring the sale of two-thirds of the office space the government owns, along with the termination of three-quarters of its leased office space. (Related: Democratic congressman joins House DOGE Caucus, suggests axing 2 agencies from DHS.)

The proposal aims to reduce government waste and improve efficiency. The GSA currently leases over 149 million square feet of office space across the country, paying nearly $5.2 billion in annual rent to private-sector landlords.

A recent report from Sen. Joni Ernst, chair of the Senate Department of Government Efficiency (DOGE) caucus, highlighted the severe under-utilization of government-owned office space. The report found that none of the headquarters for major federal agencies in Washington, D.C., are operating at more than half capacity, with occupancy rates averaging just 12 percent in GSA-owned buildings in the nation’s capital.

The GSA owns over 7,500 vacant buildings nationwide, with more than 2,200 partially empty. These underutilized properties are a significant drain on the government’s budget, with maintenance and operational costs eating away at the funds available for other critical initiatives.

This proposal to sell or terminate leases on such a large scale is likely to exacerbate the already depressed office market. Default rates on office mortgages have surged to a record 11 percent at the end of 2024, surpassing the peak levels seen during the 2008 Financial Crisis. The commercial mortgage-backed securities (CMBS) market, which is a crucial source of financing for office buildings, is under severe stress.

The impact of the GSA’s potential lease terminations will be most pronounced in certain metropolitan areas, with Washington D.C. being the most affected. The GSA leases nearly 10 percent of the entire office market in the Washington D.C. metro area, spanning 35.8 million square feet across 446 buildings. In 2025 alone, the GSA has the right to terminate 9.6 million square feet of space, which currently generates $1.47 billion in annual rent.

Other major metropolitan areas that will be impacted include New York City, Kansas City, Philadelphia, Atlanta, Los Angeles, Dallas-Fort Worth, Chicago and Denver. Together, these metros account for 66.3 million square feet of GSA-leased office space, with termination rights on 18.9 million square feet in 2025.

DOGE to reduce federal workforce, federal spending and federal agencies

These office space cuts are part of the DOGE’s initiative to reduce the federal workforce by 75 percent, cut federal spending by $2 trillion and eliminate several agencies.

On Nov. 13, Trump initially appointed Elon Musk and Vivek Ramaswamy as DOGE leaders who will work with the White House and the Office of Management and Budget to “drive large-scale structural reform and create an entrepreneurial approach” to government.

As a response, Musk and Ramaswamy outlined a plan to significantly streamline the federal government on Dec. 5. Their agenda includes reducing the federal workforce by 75 percent, cutting federal spending by $2 trillion and eliminating several agencies, such as the Consumer Financial Protection Bureau.

They also propose abolishing outdated regulations, enforcing strict in-office attendance for federal employees and relocating agencies outside of Washington, D.C., to decentralize power. Additionally, they aim to secure executive authority to nullify unnecessary regulations and modernize government functions.

But shortly before Trump’s inauguration, Ramaswamy abruptly departed from the project to run for governor of Ohio. He believes that his candidacy will contribute to DOGE’s goal of reducing the power of the federal government.

Head over to BigGovernment.news for more stories like this.

Watch this interview of Vivek Ramaswamy and Tucker Carlson from November 2024, where the former DOGE co-commissioner explains the implications of a second Trump administration for the future of America’s bloated government bureaucracy.

This video is from the Sanivan channel on Brighteon.com.

More related stories:

Deep State sabotage: Lawsuit targets DOGE in an attempt to block government overhaul.

DOGE faces monumental task as U.S. budget deficit SOARS TO RECORD HIGH going into 2025.

DOGE leaders Elon Musk and Vivek Ramaswamy present vision for government reform to Congress.

Canadian group urging Trudeau to adopt Trump’s DOGE initiative to curb wasteful government spending.

Trump’s DOGE initiative will task Elon Musk with auditing the IRS, a department rife with arrogance and waste.

Sources include:

WolfStreet.com

NPR.org

YourNews.com

Brighteon.com