Massive Lease Terminations Under Trump Slash Government Office Space, Saves $144 Million

The Trump administration has terminated leases for about 2.3 million square feet of federal office space, generating $144.5 million in savings as part of broader government downsizing efforts.

The Department of Government Efficiency, a task force spearheading federal cost-cutting initiatives, reported the lease terminations as part of an estimated $55 billion in total savings, according to Newsweek.

“Lease terminations are the clear priority at this time,” wrote a senior General Services Administration manager in a Jan.  29 note seen by the Associated Press. The directive ordered regional managers to begin canceling leases on roughly 7,500 federal offices nationwide.

Don't Miss:

• If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it?
• Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — you can become an investor for $0.80 per share today.

The terminated leases span multiple locations and agencies. The largest single reduction came from the Department of Labor in Washington, D.C., where 845,389 square feet of office space was eliminated, saving over $7.1 million.

Two Department of Homeland Security leases in Arlington, Virginia generated combined savings exceeding $25 million through the elimination of nearly 105,000 square feet of office space.

Some affected agencies have relocated to federally-owned properties, while others have closed offices entirely. Several remain in their current locations until the terminations take effect.

Trending: Many don’t know there are tax benefits when buying a unit as an investment — Here’s how to invest in real estate by mirroring BlackRock's big move

“These were probably not surprises for the building owners, given that typical negotiations for GSA leases that are expiring commence at the latest 12 months prior to expiration but typically 24 to 18 months prior,” Lucy Kitchin, head of Transwestern’s government services group, told Bisnow.

The lease terminations coincide with a GSA announcement earlier this month indicating plans to sell half of its federally-managed property portfolio. As of September, the agency owned and leased more than 363 million square feet across 8,397 buildings nationwide.

See Also: Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Many are rushing to grab 4,000 of its pre-IPO shares for just $0.26/share!

Some federal entities have expressed concerns about operational continuity. “The [Administrative Office] is currently working to respond to GSA’s inquiry and provide justification for each of these locations [affected by lease terminations] and intends to work with GSA to ensure that Judiciary operations in each of these locations can continue undisturbed,” the Administrative Office of the U.S. Courts wrote in a Feb. 13 internal memo.

The lease terminations represent one component of broader efficiency measures, which the government efficiency task force categorizes as “fraud detection/deletion, contract/lease cancellations, contract/lease renegotiations, asset sales, grant cancellations, workforce reductions, programmatic changes, and regulatory savings.”

Read Next:

• These five entrepreneurs are worth $223 billion – they all believe in one platform that offers a 7-9% target yield with monthly dividends
• Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – with $1,000 you can invest at just $0.26/share!