The federal government has saved $5.6 billion in real estate savings and is on track to save more than $8 billion as part of a White House initiative to cut federal real estate costs.
Office of Management and Budget Controller Danny Werfel said the savings come from both Base Closure and Realignment and non-BRAC projects.
“The Federal Government is the largest property owner in the United States,” Werfel said. “But over time, agencies accumulated more properties than the Government needs to effectively meet its mission. That’s why from his first days in office, the President has made it a priority to eliminate wasteful spending on Federal real estate. At his direction, agencies have worked to reduce office space, encourage wider adoption of telework, provide alternate workspace configurations, reduce operating costs, and consolidate data centers. Through these efforts, agencies have generated millions of dollars in savings from selling or consolidating properties, on top of numerous examples of lease cancellations, improved space management, and reductions in operating costs that are driving greater returns for the taxpayer.”
- This year the Federal Government sold the General Services Administration Nome Federal Building in Nome, Alaska – a 27,000-square-foot, two-story office building that was built in 1958 – for $1.68 million. The building is slated for continued office use in downtown Nome. The government recently were able to sell the Moscow, Maine Radar Site. This roughly 1,425 acre radar site previously functioned as part of a system of facilities used to track military targets across the Eastern seaboard. After a public auction, the Government sold this site for roughly $750,000.
- Last week, the IRS announced plans to close 43 smaller offices and reduce space in many larger facilities – cutting total IRS office space by more than one million square feet.
- In January of this year, the Department of Agriculture announced that it will close 259 offices, facilities and labs across the country, driving efficiencies for the Department that will net roughly $150 million annually.
- The Federal Government is moving aggressively to sell the Portland Custom House in Portland, Ore. The property is expected to be sold as early as this summer, and could yield upwards of $4 million in proceeds for the taxpayer.