Washington, D.C. is set for a major transformation as the federal government moves to reduce its real estate holdings, potentially creating space for a new neighborhood between the National Mall and the Wharf.
During President Donald Trump’s first term, his administration introduced a plan seeking to reduce the federal government’s footprint in prime areas by up to 50 percent through selling off underutilized office buildings, according to The Washington Post.
The Public Buildings Reform Board, a federal agency tasked with streamlining government real estate holdings, has been working since its creation by Congress in 2016 to identify properties that can be sold or repurposed.
In its first two reports, the board recommended selling $775 million worth of federal property.
Now, it is eyeing $1.8 billion worth of real estate, including more than 20 buildings in the D.C., Maryland and Virginia region.
A major focus of this downsizing effort is the cluster of federal buildings between the National Mall and the Wharf, including the U.S. Department of Energy, the Bureau of Engraving and Printing and the U.S. Department of Agriculture. The goal is to consolidate office space and release surplus buildings for private development, potentially transforming the area into a thriving mixed-use district.
Federal agencies are experiencing significant workforce reductions, further accelerating the shift, according to NBC News. The NBC News article stated that The U.S. Agency for International Development (USAID) has undergone a drastic downsizing, shrinking from over 5,000 employees to just 290. This move has displaced thousands of foreign service officers, civil servants and contractors.
In a symbolic moment, people watched crews remove the U.S. Agency for International Development signage from the Ronald Reagan Building, marking the agency’s diminished presence in Washington, D.C.
USAID employees were informed they would be placed on administrative leave starting at 11:59 p.m. on Friday, Feb. 14.
“This is truly an unprecedented opportunity to save taxpayer dollars, improve the federal government’s mission and greatly enhance the economic prospects of the District of Columbia,” said Dan Mathews, a Biden appointee to the Public Buildings Reform Board.
Architecture firm Skidmore, Owings & Merrill created mock-ups showcasing a transformed mixed-use district, replacing outdated government buildings.
The proposal envisions a plan to transform the area with new homes, retail and public spaces including parks, plazas and pedestrian-friendly streets.
Mayor Muriel Bowser supported reclaiming underused buildings, arguing that converting them into taxable properties would generate revenue and revitalize downtown.
“The federal footprint could shrink up to 50 percent in that area,” said Michael Peters, a Trump appointee overseeing government buildings, in a The Washington Post article.
While the potential for a new neighborhood could be promising for developers and residents looking for new areas to expand in, major financial and structural challenges remain.
High interest rates have made large-scale construction costly, discouraging some developers.
“A good building to convert to residential is skinnier, and federal office buildings are not like that,” said Philippe Lanier, a principal for Eastbanc real estate investors.
According to The Washington Post, some federal buildings may not be suitable for residential conversions due to their large size and lack of natural light, and may require demolition.
The Public Buildings Reform Board is moving forward with its recommendations, but the White House’s Office of Management and Budget has the final say on which properties are sold or repurposed.
Copy edited by Aniyah Genama
