Doge-led federal real estate liquidation begins

The Trump administration is looking to sell hundreds of federal buildings as part of a broader push to privatize government assets. According to a Fortune study, the initiative led by the government's Department of Efficiency (DOGE) follows the Private Equity Playbook.

Doge fisushead billionaire Elon Musk, a major government contractor and billionaire, revealed that at a cabinet meeting in February.

Anything that can be reasonably privatized must be privatized.

This includes, according to Fortune, J. It includes Edgar Hoover Building (FBI headquarters), Veteran Affairs, and buildings that house the offices of Senators in Boston and Chicago. The Washington Post had only two dozen buildings officially listed for sale, but “authors have confirmed that they are quietly moving forward with pushes to sell hundreds of publicly available buildings to private companies.

The General Services Administration (GSA) warned of Fortune and briefly posted it before deleting its list of 500 “non-core assets” in March.

Fast cash, long-term loss?

Experts warn that plans could backfire. The government may receive immediate cash inflows, but at the expense of long-term control over public infrastructure. Fortune quotes: “It's great to get this big money slug upfront when selling a building, but if you're trying to lease a building for a period of time you lose control over your property.”

Ventura questioned the financial logic: “Does your lease cost ultimately outweigh what you made with profit?”

In addition to concerns, commercial real estate remains low in value, particularly at DC Ermengarde Jabir, director of economic research at Moody's Analysis.

Many buildings have been on sale at deep discounts in recent months, especially in the Washington, DC area. (That) Corporate Office Landlord may be more hesitant at this point to buy office real estate, having no idea whether the value of the office market has bottomed out.

She added that dumping multiple government buildings into the market could further reduce prices.

Do you repeat the Chicago mistake?

Critics point to past city disasters as warning stories. What was the most cited example? Chicago's 2008 parking meter contract.

That year, the city quickly sold its parking meter rights for $1.2 billion in an opaque deal. In exchange it gave up 75 years of meter revenue. The rate almost doubled, reaching $6.50 an hour in some regions. Investors recovered all the costs in just 15 years, leaving behind 60 years of pure profit.

Chicago has taken control of the core parts of its infrastructure and handed over long-term public assets in short-term cash. It was effectively a fire sale.

Federal plans to sell and lease buildings follow almost identical logic. Today's cash, tomorrow's results.

Donald Cohen, author of all privatizations, warned of the risk that the government would be “deprived of the hose” like the city of Chicago. He said,

Real estate investors don't pay less than they already pay to maintain the building. There is no way to pay less. It's physically impossible.

Cohen sought a smarter alternative: “Get raises unused spaces to private tenants. Don't give up on seed corn.” Meanwhile, Doge automates several government functions, which means selling is taking place amid a massive, and often chaotic federal workers layoffs. So at least some of the buildings are really redundant.

How it all started

The selling of federal buildings was not improvised. It was ordered from above – and it came with instructions.

On February 26, President Trump signed an executive order overseeing waste reductions and spending. The order required that agencies “confirm all existing covered contracts and grants and … terminate or modify them as necessary,” and all of them “in consultation with the agency's Doge team lead.”

It didn't stop there. Section 3(g) of the Order directly targeted federal property. Agents had to update their property inventory, review lease termination options, and critically began preparing to unload the property “no longer needed.” The president has given the GSA, the agency responsible for managing federal real estate, 60 days to submit a full disposal plan to the White House Budget Office.

A week later, the GSA publicly announced it would begin selling more than 440 buildings considered “non-core,” setting its goal of saving “potentially” and “potentially” with “over $430 million in annual operating expenses.”

The order was clear. Reduce the government's physical footprint and do that with Doge surveillance. Remaining lists – Posts, revised, deleted lists are just run.

Who will win it?

The full list of buyers remains unknown, but real estate investment trusts (REITs) focusing on government leases are good for profit. One of these, Easterly Government Properties, publicly supports GSA reforms that streamline leasing and sales. In February, CEO Darrell Crate (former Massachusetts GOP Chairman) publicly supported Doge's mission. He called the institution an “exciting opportunity” and provided detailed recommendations for reducing bureaucracy, saving taxpayer money, and reforming GSA lease rules.

Crate argued that the current system would lead to “significant waste,” supporting ownership, streamlined lease approvals, and leases that govern more flexible federal budgeting rules.

Even cities with high vacancy rates are fishing for their artwork. For example, Hartford officials are reportedly preparing a pitch to Doge to attract federal offices that have been kicked out for sale. As CT Insider pointed out, they see the property shake-up as an opening to fill empty downtown spaces.

What's next?

GSA owns and leases around 8,400 buildings, so initial sales of the 440 may not seem like much. But authorities have shown that this is just the first wave. Wired reports that “ultimately, it will reduce the size of the footprint of the property owned by 50% and the number of buildings by 70%.”

Critics warn as the government prepares to load and unload public property, including some of the country's most iconic buildings. Americans can borrow what they once owned.

The news features a creepy echo of the infamous projection of the World Economic Forum (WEF). Under Doge's plan, the federal government, and even the public, would lease the back courts, federal offices and national landmarks from private property indefinitely.