- Federal office utilization averages below 60%, with most agencies far lower.
- GSA data covers nearly 10,000 sites and will inform space reduction plans.
- Multiple agency headquarters in D.C. are slated for disposition and sales.
- Agencies must consolidate or release space under new USE IT Act mandates.
Federal Space Shrinks
Bisnow reports that the General Services Administration (GSA) released new data showing federal office utilization rates have dropped below 60% at nearly 10,000 government sites nationwide. This marks the first detailed, near real-time look at how agencies use their owned and leased office properties, following requirements under the 2024 USE IT Act.
The findings come amid a broader push by the federal government to consolidate operations and shrink its office portfolio, especially as hybrid work continues and maintenance costs mount.
Agency Utilization Rates
The report highlights low occupancy across major agencies. For example, the Department of Agriculture has a 26.2% utilization rate across 19.1M SF, the Department of Justice sits at 23.8% with 42.6M SF, and NASA uses just 16% of its 11.2M SF portfolio. No agency reached the 60% office utilization mark in the most recent assessment.
Other notable numbers include the Department of Energy at 33%, Treasury at 31.4%, and the Environmental Protection Agency at 27.3%. The National Science Foundation was lowest at 3.3% utilization of its 800K SF.
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Mandated Reductions and Dispositions
Under the USE IT Act, agencies must review any federal office space below 60% utilization. They must consider reduction, consolidation, or sale.
Meanwhile, the GSA is accelerating large office asset sales. This includes recent D.C. deals like the nearly 1M SF Regional Office Building. This aligns with a broader shift across the office sector, where evolving usage patterns continue to reshape demand and long-term space needs.
In addition, dozens of offices, courthouses, and warehouses are slated for faster disposition. Agencies like HUD, Agriculture, Energy, and the FBI plan to vacate major headquarters.
What’s Next
GSA officials say this new office utilization data will drive greater transparency and accountability. Ongoing updates are expected as more agencies report and as methodologies improve, with the ultimate goal of aligning federal office needs with current usage and eliminating costly unused space from the portfolio.
