The General Services Administration has announced plans to sell off half of the federal properties it manages, a dramatic downsizing effort that appears to contradict recent calls for government employees to return to in-person work.
The move, revealed in a notice sent to agency officials on Tuesday, could significantly reshape the federal workforce and its office footprint across the country.
A Push for Government Downsizing
The decision aligns with former President Donald Trump’s broader goal of shrinking the federal government. His administration previously imposed a hiring freeze and offered financial incentives for employees to resign, a strategy strongly opposed by the American Federation of Government Employees (AFGE). The union warned that these measures would create “chaos for the Americans who depend on a functioning federal government.”
According to reports, GSA regional managers were instructed to begin terminating leases on approximately 7,500 federal office spaces nationwide. A senior official estimated that cutting federal real estate holdings could save up to $100 billion—a key selling point for an administration focused on reducing government expenditures.
Contradictions in Return-to-Work Policies
Despite the push to reduce office space, Trump recently issued a directive requiring federal employees to return to in-person work “as soon as practicable.” The mandate, released on January 20, instructed all government agencies to eliminate remote work arrangements and bring employees back to their designated duty stations full-time.
However, with GSA planning to offload a significant portion of federal office space, many employees may soon find themselves without a physical workspace to return to.
Rationale for Downsizing
GSA’s Public Buildings Service (PBS) Commissioner Michael Peters stated in an internal message that a recent assessment identified “a gross excess of space” in the agency’s portfolio, coupled with “substantial levels of deferred maintenance.” These inefficiencies, he argued, have resulted in unnecessary spending and poor working conditions for federal employees.
To address these concerns, the agency plans to cut non-Department of Defense federal office space by “at least 50 percent.” Peters emphasized a shift toward a “whole government” approach to office utilization, aiming to consolidate resources across agencies and further reduce the need for physical office space and associated support staff.
Concerns Over Rapid Execution
Critics argue that such a drastic reduction in federal real estate should be a carefully managed, gradual process. Heather Long, an economic columnist at The Washington Post, warned that a sudden sell-off could lead to a “fire sale” of government properties, preventing taxpayers from getting a fair return on these assets.
A former GSA official, speaking anonymously to Federal News Network, expressed concerns over the impact on critical government operations. “It is the prerogative of the president to set budgets and shape the government’s structure, but mass layoffs and property sales without considering long-term consequences could disrupt mission-critical infrastructure,” the official said.
What’s Next?
While specific details and timelines remain unclear, GSA officials have signaled that the agency will be significantly smaller in the near future. Reports indicate that a non-voluntary Reduction in Force (RIF) could be implemented as early as this week, leading to further uncertainty among federal employees.
As the government moves toward a leaner workforce with reduced office space, the coming months will reveal whether these efforts result in cost savings—or create new logistical challenges for federal operations.
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