The federal government is moving to offload or consolidate 11 underused office buildings across seven U.S. cities, including Washington, D.C., Chicago, and Houston, in a push to cut costs and modernize its real estate footprint.
The proposal, released by the Public Buildings Reform Board, estimates $5.4 billion in long-term savings and $346 million in potential property sales.
The nearly 7.1 million square feet of real estate under review includes high-profile properties such as the U.S. Department of Energy’s headquarters in D.C. and the William O. Lipinski Federal Building in Chicago.
Officials say many of the buildings are outdated or too costly to maintain, with limited demand for traditional office use in many markets, according to CoStar.
Instead, real estate experts suggest the properties could be repurposed as housing, museums, or mixed-use developments, better suited to today’s urban needs. Cushman & Wakefield’s Darian LeBlanc noted that many sites are unlikely to remain office spaces, citing weak demand and outdated layouts.
The Office of Management and Budget must approve the latest recommendations before the General Services Administration can act. The initiative aligns with efforts to reduce federal waste and reimagine government space use as more agencies monitor real estate utilization and weigh long-term telework trends.
The board’s mandate is set to expire at the end of 2026 unless extended. Another batch of properties is expected to be proposed next year.
