Trump Administration Greenlights Quick Disposal of Massive Federally Owned Offices

The General Services Administration (GSA) is clear to swiftly shed 11 federally owned office buildings across the U.S., including four in the Washington, D.C., area. 

The U.S. Office of Management and Budget (OMB) authorized the accelerated dispositions this week following recent recommendations from the Public Buildings Reform Board. The approval allows the GSA to bypass a typical requirement when ditching federal buildings — determining if local government agencies or nonprofits want the space — which can add weeks to the process, according to the Business Journals.

The four affected buildings in the DMV are the James V. Forrestal Building, the 1.7 million-square-foot headquarters of the Department of Energy at 1000 Independence Avenue SW; the Regional Office Building, a roughly 1 million-square-foot building at 301 Seventh Street SW; the Wilbur J. Cohen Federal Building, the 1.2 million-square-foot home of the U.S. Agency for Global Media at 330 Independence Avenue SW; and 4700 River Road, a 337,000-square-foot office used by the Animal and Plant Health Inspection Service in Riverdale, Md. 

“OMB fully supports increasing the effectiveness and cost efficiency of the federal real property portfolio, and the disposition of these properties furthers that goal,” Russell T. Vought, OMB director, said in a statement. “OMB encourages the disposition of the identified assets in a manner that maximizes the return to the taxpayer.”

All four of the D.C.-area buildings have been on the GSA’s dispositions docket in one form or another lately. The Regional Office Building and 4700 River Road were previously identified for disposal by the outgoing Biden administration, Congress ordered the sale of the Cohen Building in December, and the Forrestal Building was included on the GSA’s initial list of properties slated for accelerated disposition in March.

The Forrestal Building in particular has long been eyed for possible redevelopment, due to its size and location near the National Mall. Washington, D.C., Mayor Muriel Bowser recently suggested spending $1.5 million to develop a master plan for the area, as part of her Fiscal Year 2026 Budget proposal. The master plan is expected to call for a “new mixed-use community that maximizes its proximity to the National Mall.”

Despite the quick disposal greenlight from OMB, the GSA must still jump through several hoops to fully shed the properties. That includes inquiries to other federal agencies if they want the spaces, as well as a study to determine if the properties can be used to assist the local homeless population, per the Business Journals.

Nick Trombola can be reached at ntrombola@commercialobserver.com.