The General Services Administration (GSA) plans to terminate approximately 1,000 federal real estate leases by week’s end, impacting about 13% of its portfolio. These leases, part of over 7,500 total, are primarily nearing the end of their initial five-year terms. Some agencies remain unaware of terminations, leading to confusion among lessors and agencies. Exemptions include leases for the Departments of Defense, Homeland Security, Veterans Affairs, State, FBI, DEA, U.S. Marshals Service, ATF, Social Security Administration, intelligence community, and the Executive Office of the President. Michael Peters, commissioner of the Public Buildings Service, aims for a 50% reduction in federal building space. This occurs as the Trump administration mandates full-time office returns for federal employees. Concerns arise regarding sufficient office space for returning workers. GSA is also undergoing a nonvoluntary Reduction in Force (RIF), potentially eliminating up to 60% of its workforce. The Public Buildings Service, managing federal real estate, faces significant cuts, aiming to reduce staff from 5,600 to 1,200. PBS plans to phase personnel cuts to manage asset disposal and office optimization. New technologies, including AI, will enhance efficiencies in lease and acquisition processes. GSA set March 3 as the deadline for full-time office returns, though deadlines vary for employees. About 2,000 GSA employees live over 50 miles from the nearest regional office. — news from Federal News Network
