Statement regarding GSA’s disposal of non-core assets

March 04, 2025

GSA’s Public Buildings Service’s (PBS) foundational mission is to deliver cost-effective workspace solutions for its federal agency customers, enabling them to fulfill their missions for the American taxpayer. This requires providing functional facilities to meet the needs of our federal agency customers at the best possible value.

PBS has identified certain core Federally-owned assets within its portfolio that are needed for critical government operations, such as: courthouses, land ports of entry, and facilities critical to our national defense and law enforcement. These core assets are intrinsically significant to the mission of the federal government and will be retained for long-term needs.

Federally-owned assets in GSA’s portfolio that are not core to government operations primarily consist of office space. GSA currently owns and maintains over 440 non-core assets comprising almost 80 million rentable square feet across the nation and representing over $8.3 billion in recapitalization needs. Decades of funding deficiencies have resulted in many of these buildings becoming functionally obsolete and unsuitable for use by our federal workforce. We can no longer hope that funding will emerge to resolve these longstanding issues. GSA’s decisive action to dispose of non-core assets leverages the private sector, drives improvements for our agency customers, and best serves local communities.

GSA will consider non-core assets for divestment from government ownership in an orderly fashion to ensure taxpayers no longer pay for empty and underutilized federal office space, or the significant maintenance costs associated with long-term building ownership — potentially saving more than $430 million in annual operating costs.

As part of our strategy to optimize the GSA portfolio, PBS will be engaging in market research and customer agency feedback regarding the potential disposition strategies for non-core assets, and will consider current use, occupancy, cost of agency relocation, and local market conditions when assessing disposition. PBS welcomes creative solutions, including sale-lease backs, ground leases and other forms of public/private partnerships to drive the full optimization of our space while delivering our federal employees the high quality work environments they need to fulfill their missions. GSA will continuously review and update the list of non-core assets. GSA will be releasing more information on how interested prospective parties can submit information soon. 

PBS remains fully committed to meeting the mission needs of our customer agencies and seeks to improve the quality of space provided through consolidation into a smaller footprint. PBS is excited to undertake this overhaul of the portfolio and looks forward to delivering the federal workforce world class work environments as they return to office.

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About GSA: GSA provides centralized procurement and shared services for the federal government. Managing a real estate portfolio of over 360 million rentable square feet, GSA oversees more than $110 billion in products and services via federal contracts and delivers technology services that support millions across various federal agencies. GSA’s mission is to enhance government efficiency and service delivery to the American people. For more information, visit GSA.gov and follow us at @USGSA.