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Jonathan Price – CRE & Flex Expert
The Trump administration is moving forward with a new coworking initiative that could significantly alter how and where federal employees work.
The U.S. General Services Administration (GSA) has awarded contracts to two coworking marketplace operators — LiquidSpace and DHC Real Estate Services — to develop platforms that will allow government employees to share office space across agencies. The effort aligns with President Donald Trump’s push to consolidate federal real estate holdings.
According to BisNow, the two firms have been awarded a combined $100,000 to create competing digital platforms that will facilitate the conversion of agency-specific offices into coworking hubs accessible to employees from multiple federal departments.
A New Model for Government Workspaces
“The government’s objective is to start creating environments where instead of individual agencies occupying their own space with their own needs, it’s thinking more about a flex space model for the agencies where that makes sense,” said Jon Luttwak, CEO of DHC Real Estate Services, in a statement to BisNow.
DHC Real Estate Services will oversee a pilot project covering 6.3 million square feet of GSA-owned office space across 89 buildings in Chicago, serving approximately 48,000 government employees. Simultaneously, LiquidSpace will manage a similar program across multiple states. Initially awarded for properties in San Francisco, LiquidSpace’s contract has since been expanded to a multi-agency, multi-state initiative.
The platforms are designed to operate as cloud-based marketplaces where federal employees can book office space as needed. Agencies will have the option to reserve individual desks, entire office sections, or even full floors at underutilized government buildings.
If no federal space is available, the system will also enable employees to access commercial coworking spaces through private vendors.
Technology-Driven Space Optimization
The project requires integrating artificial intelligence for advanced analytics and cost optimization, a feature that could help agencies manage their real estate needs more efficiently. BisNow reports that the pilot could expand to include approximately 150 federally owned and leased buildings across the U.S. if successful.
LiquidSpace CEO Mark Gilbreath stated that the goal is to accelerate the transition to a smaller, high-utilization real estate portfolio. “The expectation is that they’re going to try as fast as they can to get into a smaller portfolio with higher utilization,” Gilbreath told BisNow.
DHC Real Estate Services is also collaborating with Upflex and Gospace AI to enhance digital booking capabilities. Luttwak noted that leveraging existing federal office space is the government’s top priority, as it represents a cost-free transaction compared to renting external space.
A Fast-Moving Federal Initiative
The GSA is implementing the initiative quietly and under a tight timeline. The request for services was issued on February 27, with proposals due by March 3. Contracts began on March 24, and the platforms were initially slated to launch by March 31. However, the rollout has been delayed to late April, according to BisNow.
The initiative is part of broader efforts by the administration to reshape government operations and reduce spending. President Trump’s executive order requiring all federal employees to return to the office five days a week has created logistical challenges, including overcrowded offices and supply shortages. The coworking platform reportedly aims to provide a flexible solution while helping the GSA consolidate underutilized spaces and potentially divest outdated properties.
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BisNow reports that GSA officials are moving aggressively to reduce the federal real estate footprint. A recent list of 443 properties under consideration for disposition included major federal agency headquarters, though it was quickly removed from public view. A revised list of eight properties totaling 2 million square feet has since been released for accelerated disposition.
Luttwak emphasized that the coworking initiative represents a new approach to government real estate management, stating, “Real innovation always happens at the edge, at the nexus between two disciplines, which is why incubators work so well.”
As federal agencies navigate this transition, the success of the coworking initiative could set the stage for a more flexible and cost-efficient government workspace model in the years ahead.
