Representative Marjorie Taylor Greene (R-GA) seems to be pushing a new initiative by the Department of Government Efficiency (DOGE), led by Elon Musk, to drastically reduce the federal government’s real estate footprint. This initiative involves the termination of federal leases and the potential sale of vacant government buildings.
Based on the confidence in the X posts, the Trump administration likely supports her, and this initiative could be set to significantly impact several major cities. Washington, D.C., is bearing the brunt of the initial wave of cuts, with 11 leases totaling 1.4 million square feet slated for termination. According to CRE Daily, this represents a substantial blow to the district’s already struggling office market, which experienced a vacancy rate nearing 23% last year.
Analysts predict that these lease terminations will exacerbate the downturn, potentially reversing recent signs of stabilization. The difficulty in attracting replacement tenants for older government buildings further complicates the situation. The impact extends beyond Washington, D.C. Other major cities with significant federal presences, including New York, Los Angeles, and Atlanta, are expected to experience increased vacancies as DOGE continues its cost-cutting measures.
DOGE may be ending all those empty building leases
Smaller cities with a large concentration of federal offices, such as Hagerstown, Maryland, and Martinsburg, West Virginia, are also at risk. These secondary markets, where government jobs and leasing activity have long served as stabilizing economic forces, face the potential for prolonged downturns and associated economic challenges. A similar pattern is expected in Ohio, which is already facing a substantial number of lease terminations (ten at the current count).
Rep. Greene directly linked DOGE’s actions to her concerns about wasteful government spending on X, stating: “Empty federal buildings = BILLIONS in WASTED taxpayer cash!” She highlighted the upcoming hearing held by her DOGE Committee, scheduled to expose what she calls “one of the biggest scams in Washington—$10 BILLION a year to maintain empty federal buildings.” The hearing aims to detail the extent of wasteful spending and to advocate for increased accountability and efficiency within the federal government’s real estate management.

The connection between DOGE’s actions and Rep. Greene’s concerns is clear. The large-scale lease terminations and potential sales of vacant properties are a direct response to the concerns raised by Rep. Greene and others about the financial burden of maintaining underutilized federal real estate.
The consequences for landlords with numerous federal tenants are potentially severe. The increased vacancies resulting from DOGE’s actions could lead to mounting financial pressure, particularly in Washington, D.C., where the concentration of federal leases is highest. This pressure will be especially acute for owners of older buildings, which may face significant challenges in refinancing due to higher vacancy rates and reduced rental income.
Published: Apr 8, 2025 10:20 am