Federal Property Divestment Plan Paused
The General Services Administration (GSA) has temporarily removed its list of over 440 federal buildings identified as nonessential from public view. A GSA spokesperson confirmed to Fierce Healthcare that the list, which was pulled offline on March 5—just one day after the administration announced plans to significantly reduce the nation’s real estate footprint—will be republished soon.
“Since publishing the initial list, we have received an overwhelming amount of interest,” the spokesperson explained. “We anticipate the list will be republished in the near future after we evaluate this initial input and determine how we can make it easier for stakeholders to understand the nuances of the assets listed.”
The temporarily removed list is expected to be updated dynamically once it returns to public access, allowing interested parties to track changes in real-time.
Healthcare Facilities Among Properties Identified
Before its removal, the list notably included several key healthcare-related federal buildings. The Hubert Humphrey Building, the 750,000-square-foot headquarters of the Department of Health and Human Services (HHS), was marked as nonessential. Additionally, four Centers for Medicare and Medicaid Services (CMS) headquarter buildings in Woodlawn, Maryland appeared on the list.
The Food and Drug Administration’s (FDA) White Oak campus in Silver Spring, home to the Center for Biologics Evaluation and Research (CBER), was also designated as nonessential. CBER has reportedly experienced significant staffing losses since HHS employees were first fired, according to Fierce Biotech. A regional FDA office located in Bothell, Washington was included as well.
Major Financial Implications
The government’s divestment strategy encompasses approximately 80 million in rentable square feet of property with more than $8.3 billion in recapitalization needs. According to the GSA, this initiative could potentially save taxpayers over $430 million in annual operating costs.
“Decades of funding deficiencies have resulted in many of these buildings becoming functionally obsolete and unsuitable for use by our federal workforce,” the agency stated. “We can no longer hope that funding will emerge to resolve these longstanding issues.”
Innovative Property Management Solutions Considered
To maximize efficiency and value, the GSA is exploring various alternatives to traditional property ownership. These include sale-leasebacks, ground leases, public-private partnerships, and interagency co-working agreements that would “drive full optimization” of federal real estate assets.
The spokesperson emphasized that inclusion on the list doesn’t necessarily mean immediate sale: “To be clear, just because an asset is on the list doesn’t mean it’s immediately for sale. However, we will consider compelling offers (in accordance with applicable laws and regulations) and do what’s best for the needs of the federal government and taxpayer.”
Lease Terminations Affecting Multiple Agencies
Beyond property sales, hundreds of government lease terminations are listed on the Department of Government Efficiency (DOGE) website. These terminations affect numerous agencies including CMS, the Centers for Disease Control and Prevention (CDC), FDA, Veterans Benefits Administration, and various departments within Agriculture, Indian Health Services, the Securities and Exchange Commission, the Occupational Safety and Health Administration, and the Federal Trade Commission.
The FDA alone faces 30 lease terminations across 23 states as of March 4, while the Indian Health Service is affected by approximately a dozen terminations. Most terminations are classified as “via mass mod,” indicating multiple contracts were changed simultaneously, with the remainder resulting from consolidation efforts.
Congressional Concerns Emerge
The rapid divestment plan has drawn criticism from some lawmakers. Senator Ron Wyden (D-Oregon) expressed skepticism about the initiative, stating: “Given Donald Trump’s checkered legacy in the private sector of multiple bankruptcies and real estate deals gone awry, forgive me if I’m more than a little skeptical when that dubious record gets applied to the public sector.”
Wyden added that he’s “nowhere near convinced this fire sale of federal assets throughout Oregon is in the best interest of U.S. taxpayers who paid for these facilities or for all Oregonians who depend on them for a reliable power grid, a functional court system, constituent services, and more.”
Workforce Impact Considerations
The property divestment comes amidst wider government restructuring led by DOGE architect Elon Musk and the Trump administration. Federal agencies are being tasked with creating reorganization plans, preparing for potential large-scale workforce reductions, and identifying unneeded federal buildings for sale.
Simultaneously, the administration is requiring federal workers to return to physical offices, sometimes relocating across state lines, despite uncertainty about available workspace. This return-to-office mandate could be further complicated if federal buildings are sold and workers face additional displacement.
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