The GSA is planning to sell hundreds of its federal government buildings

Employees at the General service administration (GSA) was told to sell 500-plus federal government Buildings in the US say sources Wired.

Wired has obtained a complete list of GSA buildings, all of which are referred to as “core” or “non-core” assets. Of the more than 1500 assets identified on the list, more than 900 are referred to as “core”, and are therefore protected against sale for the time being. The “core” indication applies to buildings such as federal court buildings, border inspection stations or law enforcement facilities.

The GSA, according to sources that have been given anonymity because they are afraid of retribution, intends to sell most of the remaining 500 plus buildings, some of which are government agencies and the offices of US senators.

A remark on the list of the buildings states that the intention of the agency is ultimately to reduce the ‘size of the property of the property with 50 percent and the number of buildings by 70 percent. Reductions will be aimed at the non-core general office space of the portfolio that can be replaced if necessary in the private rental market. In the future, all non-core buildings will be thrown away and their tenants will be transferred to lease contracts. “

GSA, A Critical government agency who manages federal buildings and technology is staffed by Elon Musk’s employeesIncluding X employee Nicole Hollander, who has access at a high level and an official government e-mail address. Thomas Shedd, the recently installed director of the Technology Transformation Services within GSA, worked for eight years as a software engineer at Tesla. Wired also reported that a number of young engineers With ties with Musk’s companies and little or no government experience, access to a number of government agencies, including GSA, have been gained.

According to the list, the buildings that are intended for the block are the John C. Kluczynski Federal Building In Chicago, which houses satellite offices for the Ministry of Labor, the Drug Enforcement Administration, the Internal Revenue Service, a probation office and offices for Democratic Illinois Senators Tammy Duckworth and Dick Durbin. The building also has a broader cultural significance – it was designed by the renowned architect Ludwig Mies van der Rohe and has an iconic sculpture by Alexander Calder.

The John F. Kennedy Federal Building in Boston is also mentioned as a “non -core” active. This building, next to Housing A number of government agenciesAlso holds offices for Democratic Massachusetts Senators Elizabeth Warren and Edward Markey.

The federal building of Ed Jones in Jackson, Tennessee, which holds an office for Republican senators Marsha Blackburn and Bill Hagerty, as well as the Republican Congressman David Kustoff, is also mentioned as a ‘non-core’ assets.

“Optimizing GSA’s real estate portfolio gives priority to reducing our deferred maintenance obligations, to support the return to the office of federal employees and benefit from a stronger private/government partner in the management of the workforce of the future,” reads a GSA press release that was published today.

GSA did not respond immediately to a request for comments.

“The intention of GSA and the entire federal government is to reduce the number of old buildings owned by high obligations … in favor of newer rental buildings that can be more flexible and more modern, who have ways for teams to work together And have private rooms, “Shedd told TTS employees during a meeting on 5 February, according to Audio obtained by Wired.

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Cut the real estate portfolio of the federal government and the corresponding maintenance costs are one Priority for the agency Since before the inauguration of Donald Trump. A number of buildings have been poorly repaired, underented or poorly suitable for modern office layouts. In 2023, the GSA disposed of a total of five buildings and identified 23 extra properties for future disinvestment.

Now that goal seems to be an order of size higher. However, the market for commercial real estate (CRE) is vulnerable in the aftermath of COVID and the rise of external activities, which lower the property values. In an OP-ED last summer for the Harvard Business Review, a chief economist warned That banks with considerable CRE portfolios are confronted with exposure due to showing loan obligations and can fail, which leads to a financial crisis. By placing hundreds of new buildings on the market, many in already struggling city centers risk further instability.