Trump Administration Reverses Plan to Sell 443 Federal Properties Across U.S.

In a quick turnaround from yesterday’s announcement, the Trump administration has reversed its decision to unload hundreds of federally owned properties across the U.S.

The General Services Administration (GSA) announced Tuesday that it was considering selling 443 “non-core” assets totaling nearly 80 million square feet in 47 states, Washington, D.C., and Puerto Rico, costing a combined $8.3 billion in recapitalization costs, as Commercial Observer previously reported.

But about 18 hours later, that decision was reversed, putting a wrench in President Donald Trump and Elon Musk’s plans to cancel hundreds of federal leases and shrink the size of the federal government portfolio, Bloomberg reported.

“GSA is taking swift, common-sense action to solve the nation’s toughest problems of reducing the federal deficit and increasing government efficiency,” the GSA said in a statement Wednesday.

“That’s why we’re exploring innovative approaches — including public-private partnerships, ground leases, sale leasebacks and interagency co-working agreements — to optimize our real property portfolio in support of the administration’s [executive order],” the GSA said. “These actions will result in increased service quality to our customers and savings to the American taxpayer.”

After the list of 443 properties was posted as up for sale on the GSA’s website at 2 p.m. Tuesday, more than 100 properties were soon removed from the catalog. By Wednesday morning, the entire list had been scrubbed to a lone message saying “non-core property list (coming soon),” Bloomberg reported.

The GSA said Wednesday the list will be “republished in the near future” after evaluating “initial input.”

Musk is expected to meet with Republican members of Congress today, according to Bloomberg.

The GSA has said it plans to keep “core” assets, however, which include courthouses, ports of entry and properties “critical to our national defense and law enforcement.”

But some of the properties listed for sale yesterday raised some eyebrows, based on sheer size and use, CO reported.

That includes the U.S. Census Bureau headquarters at 4600 Silver Hill Road – North and 4600 Silver Hill Road – South in Suitland, Md., which comprise roughly 804,000 square feet and 664,000 square feet, respectively. Also on the list was the GSA’s own 522,181-square-foot headquarters at 1800 F Street NW in D.C.

Isabelle Durso can be reached at idurso@commercialobserver.com.