GSA May Make Major Impact on U.S. Office Market

“The Trump administration is considering selling two-thirds of the Federal government’s office stock to the private sector, according to people familiar with the transition operations. About three-quarters of the 70 million square feet of office space GSA leases from private landlords in D.C. is also likely to be canceled.  The GSA has been working to reduce the real estate it owns as more of its buildings deteriorate from a lack of maintenance.  But it is hardly an easy task. Before auctioning off any properties, GSA must first typically make them available free or at a reduced cost to government entities. Ultimately the agency doesn’t keep the profits of the sales. Much of what it can sell will likely be at fire-sale prices. Buildings will sell for 30 cents on the dollar.” The Wall Street Journal 1/21/25