Advertisements
Accelerate Your Brand - Allwork.Space
Advertise
No Result
View All Result
Allwork.Space
Future of Work
Newsletters
  • Latest News
  • Leadership
  • Work-life
  • Coworking
  • Design
  • Career Growth
  • Tech
  • Workforce
  • CRE
  • Business
  • 🗣️Expert Voices
  • 🛒Product Reviews
  • 🌎Coworking Spotlights
  • 🎙️The Future Of Work Podcast
  • 🔎The Future of Work Urban Dictionary
Allwork.Space logo
Future of Work
No Result
View All Result
Newsletters
Allwork.Space
  • Home
  • News
  • Leadership
  • Work-life
  • Coworking
  • Design
  • Workforce
  • Tech
  • CRE
  • Business
  • Podcast
  • Career Growth
  • Newsletters
Advertisements
Become An Alliance Virtual Offices Partner
Home News

D.C. Lost 850,000 SF Of Office Space In 2025 As Federal Agencies Downsize Under Push To Cut Costs

A wave of federal agency cutbacks and canceled leases has pushed Washington D.C.’s office market into negative absorption, with 850,000 square feet shed in just six months, according to a new CBRE report.

Allwork.Space News TeambyAllwork.Space News Team
July 2, 2025
in News
Reading Time: 2 mins read
A A
D.C. Lost 850,000 SF Of Office Space In 2025 As Federal Agencies Downsize Under Push To Cut Costs

The FBI is preparing to relinquish 200,000 square feet at the Woodies Building downtown.

Washington, D.C. is feeling the effects of a federal pullback, with government agencies vacating major office space across the city. In the first half of 2025, the federal government shed approximately 850,000 square feet of leased space, according to CBRE’s latest Q2 report — a clear sign of the Trump administration’s push to reduce the federal real estate footprint.

This is playing out in high-profile leases. The Department of Justice, for example, renewed its lease at Two Constitution Square for 403,000 square feet, but returned 172,000 square feet in the process, which was a 30% space cut, according to BisNow. 

Advertisements

Meanwhile, the FBI is preparing to relinquish 200,000 square feet at the Woodies Building downtown.

Other agencies are scrapping plans entirely. The U.S. Agency for Global Media, under pressure from officials aiming to trim spending, cancelled a pending 290,000-square-foot lease at 1875 Pennsylvania Ave. NW. The space was originally secured during the Biden administration but later criticized as wasteful by Trump-aligned leadership.

Advertisements
Become An Alliance Virtual Offices Partner

As a result, the larger D.C. office market posted 396,000 square feet of negative absorption in Q2, adding to the 165,000-square-foot loss in Q1. Overall office vacancy remains high at 22.6% across the city’s 123 million square feet of office inventory. 

In contrast, D.C.’s trophy office segment — generally less dependent on government tenants — continues to outperform, with a vacancy rate of just 11.5%.

Advertisements
Source: CBRE
Tags: CRELeadershipNorth America
Share5Tweet3Share1
Allwork.Space News Team

Allwork.Space News Team

The Allwork.Space News Team is a collective of experienced journalists, editors, and industry analysts dedicated to covering the ever-evolving world of work. We’re committed to delivering trusted, independent reporting on the topics that matter most to professionals navigating today’s changing workplace — including remote work, flexible offices, coworking, workplace wellness, sustainability, commercial real estate, technology, and more.

Other Stories Recommended For You

Nvidia And Meta Expand AI Agent Partnership With $3 Billion Investment
News

Nvidia And Meta Expand AI Agent Partnership With $3 Billion Investment

byAllwork.Space News Team
15 hours ago

Nvidia invests $3 billion in Meta as the companies deepen their AI partnership.

Read more
Amazon, Microsoft And Google Face Growing Pressure To Prove AI Investments Are Paying Off

Amazon, Microsoft And Google Face Growing Pressure To Prove AI Investments Are Paying Off

16 hours ago
Gen Z Is Losing Faith In Business School As MBA Applications Plunge 25% Amid AI Job Fears

Gen Z Is Losing Faith In Business School As MBA Applications Plunge 25% Amid AI Job Fears

16 hours ago
RTO 3.0 Didn't Just Bring Back Office Gossip — It Brought Back An HR Nightmare

RTO 3.0 Didn’t Just Bring Back Office Gossip — It Brought Back An HR Nightmare

1 day ago
Advertisements
Become An Alliance Virtual Offices Partner
Advertisements
Become An Alliance Virtual Offices Partner

The Future of Work® Newsletter helps you understand how work is changing — without the noise.

Choose daily or weekly updates to stay current, and monthly editions to explore worklife, work environments, and leadership in depth.

Trusted by 22,000+ leaders and professionals.

2026 Allwork.Space News Corporation. Exploring the Future Of Work® since 2003. All Rights Reserved

Advertise   Submit Your Story   Newsletters   Privacy Policy   Terms Of Use   About Us   Contact   Podcast 

No Result
View All Result
  • Home
  • Latest News
  • Topics
    • Business
    • Leadership
    • Work-life
    • Workforce
    • Career Growth
    • Design
    • Tech
    • Coworking
    • Marketing
    • CRE
  • Podcast
  • Urban Dictionary
  • About Us
  • Advertise | Media Kit
  • Submit Your Story
Newsletters

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
-
00:00
00:00

Queue

Update Required Flash plugin
-
00:00
00:00