Trading Nvidia earnings report? These are the entry and exit levels to watch for
Investing.com -- The US government, under the administration of President Donald Trump, is exploring the prospect of selling a vast portfolio of federal properties. The portfolio comprises non-core assets across 47 states, the District of Columbia, and Puerto Rico. The assets, almost 80 million square feet of commercial space, are currently owned and maintained by the General Services Administration’s Public Buildings Service (GSA PBS).
The GSA PBS is tasked with providing cost-effective workspace solutions for federal agencies. The organization has identified core federally-owned assets within its portfolio that are crucial for government operations, such as courthouses, land ports of entry, and facilities critical to national defense and law enforcement. These core assets will be retained for long-term needs.
However, a significant portion of the GSA’s portfolio consists of non-core assets, primarily office space. The agency currently owns over 440 of these non-core assets across the nation, representing over $8.3 billion in recapitalization needs. Due to funding deficiencies over the years, many of these buildings have become functionally obsolete and unfit for use by the federal workforce.
The GSA’s plan is to divest these non-core assets in an orderly manner. The aim is to ensure taxpayers no longer bear the burden of maintaining empty and underutilized federal office spaces or the significant costs associated with long-term building ownership. This move could potentially save more than $430 million in annual operating costs.
The GSA PBS is planning to engage in market research and solicit feedback from customer agencies regarding potential disposition strategies for non-core assets. Factors such as current use, occupancy, cost of agency relocation, and local market conditions will be considered when assessing disposition. The GSA is open to creative solutions like sale-lease backs, ground leases, and other public/private partnerships to optimize the use of space while providing federal employees with high-quality work environments. The list of non-core assets will be regularly reviewed and updated, and more information on how interested parties can submit information will be released soon.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.