GSA Sells Underutilized Federal Property in Washington, D.C.

GSA News Releases

Published March 25th, 2026

Detected March 25th, 2026

Summary

The U.S. General Services Administration (GSA) announced the sale of the GSA Regional Office Building in Washington, D.C. This disposition is part of an initiative to reduce underutilized federal property and is expected to save taxpayers over $200 million in maintenance and $5.5 million in annual operating costs.

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What changed

The U.S. General Services Administration (GSA) has completed the public sale of the GSA Regional Office Building (ROB) located at 301 7th St SW, Washington, D.C. This sale, part of a directive to reduce waste and shrink the federal real estate portfolio, is the first major D.C. office building disposition by the current administration and is intended to serve as a model for future property sales. The sale of the 940,000 square foot facility is projected to save taxpayers over $200 million in delinquent maintenance and $5.5 million in annual operating and maintenance costs.

While this is a completed sale and not a new regulatory requirement, the GSA's actions and stated goals highlight a focus on optimizing federal real estate. Regulated entities, particularly those involved in government contracting or real estate development in Washington D.C., may observe this trend as an indicator of potential future opportunities or shifts in federal property management. The GSA has also indicated further property disposals are planned, aiming to eliminate $5 billion in delinquent maintenance and operating costs across the federal portfolio.

Source document (simplified)

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March 25, 2026
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GSA Sells Its Underutilized Federal Property in Washington, D.C.

GSA Regional Office Building sale signals momentum in property dispositions

WASHINGTON – Today, the U.S. General Services Administration (GSA) announced the completion of a competitive public sale for the GSA Regional Office Building (ROB), located at 301 7th St SW, Washington, D.C. GSA listed the property for accelerated disposition last year, following President Trump’s directive to reduce waste, including unnecessary properties.

This first major D.C. office building sale by this administration serves as an important blueprint for future dispositions. The private purchase of the 940,000 square foot office facility on over 3.4 acres supports GSA’s efforts to offload underutilized space.

“GSA is leading by example, eliminating underutilized property and delivering savings to the American taxpayer. This move demonstrates GSA’s commitment to President Trump’s agenda to shrink the federal real estate portfolio to a better core that focuses on workspace needs and agency missions,” said GSA Administrator Edward C. Forst. “The sale is expected to save taxpayers over $200 million in delinquent maintenance and $5.5 million in annual operating and maintenance costs.”

The building, originally constructed as a warehouse between 1929 and 1932 and later adapted for office use, most recently housed the Department of Homeland Security, but has sat vacant since March 2025.

“After years of working to put empty and expensive federal buildings up for sale, today, the GSA Regional Office Building is officially sold!” said Senator Joni Ernst. **** “Even though this building has been vacant, the American people have still been footing the bill. With this sale, we are saving Americans over $205 million and taking an additional $500 million in required updates off taxpayers’ tab. I’m thankful Administrator Forst and the Trump administration are putting taxpayers first.”

Situated at the intersection of Washington’s government quarter and the Southwest waterfront district, the GSA ROB stands within walking distance of national landmarks, Metro connectivity at L’Enfant Plaza, and the rapidly transforming Southwest neighborhood. The area has seen accelerated redevelopment through public-private partnerships, waterfront activation, and residential conversion projects, creating opportunities for adaptive reuse that aligns with the district’s evolution into a vibrant mixed-use community.

“We are grateful to the GSA team for their professionalism and the efficiency with which they brought this transaction to completion,” said Hossein Fateh, CEO, Dalian Development, LLC. “This project is an opportunity to create something beautiful for Southwest Washington — something aligned with the city’s larger vision for the neighborhood and a catalyst for its resurgence. I have had a home in Washington for more than four decades, and realizing this vision will require a substantial investment of time and capital — a reflection of my long-term commitment to this city.”

In addition to the sale of this property, GSA has listed other buildings for potential disposal to ensure taxpayers no longer pay for underutilized federal office space. GSA projects that the sale of these buildings will eliminate $5 billion in delinquent maintenance and annual operating costs.

GSA remains committed to solving long-term problems that exist in the federal portfolio of assets, reduce waste, and deliver long-term value to the American people. For more information, visit realestatesales.gov.

About GSA: GSA provides centralized procurement and shared services for the federal government. GSA manages a nationwide real estate portfolio of approximately 360 million rentable square feet, oversees more than $116 billion in products and services via federal contracts, and delivers technology services to millions of people across dozens of federal agencies. GSA’s mission is to deliver exceptional customer experience and value in real estate, acquisition, and technology services to the government and the American people. For more information, visit GSA.gov and follow us at @USGSA.

Contact
press@gsa.gov

Last updated: Mar 25, 2026

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