Federal Agencies Maintain Offices That Sit Mostly Empty

Published

1 year ago

October 31, 2023

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The federal government is sitting on millions of square feet of unused office space.

That’s the upshot of a new report by the Government Accountability Office (GAO), which found that even before the COVID-19 pandemic cleared out offices and introduced much of the country to remote work, “federal agencies have long struggled to determine how much office space they need to fulfill their missions.”

“The federal government owns over 460 million square feet of office space that costs billions annually to operate and maintain,” the report notes.

The GAO surveyed the 24 federal agencies that use most of the federal government’s buildings; these included the Departments of State, Commerce, Justice, Transportation, Homeland Security, and Education, as well as agencies like the Social Security Administration and the Environmental Protection Agency. Then, the GAO calculated the square footage of each agency’s headquarters compared to its average in-person attendance during one week each in January, February, and March 2023.

The report found that, on average, 17 of the 24 agencies surveyed used 25 percent or less of the available space in their headquarters buildings. Even agencies on the higher end only averaged between 40 percent and 49 percent.

This problem is not unique to the federal government. Washington, D.C.’s WTOP News reported in July that 18.9 percent of office buildings in the nation’s capital are empty, a record high. In the first quarter of 2023, the vacancy rate in New York City rose to 16.1 percent, signifying 76 million square feet of empty office space.

But the situation is obviously very different when the taxpayers are the ones footing the bill. The GAO report notes that the 24 agencies it surveyed “spend about $2 billion a year to operate and maintain owned federal office buildings.” Owing to the sheer size and scope of the cost, some agencies put off maintenance and repairs. The GAO recommends “disposing of underutilized buildings in need of repair” as a cost-saving measure.

To make matters worse, even as agency headquarters are mostly empty, “federal agencies spend about $5 billion annually to lease office space from the private sector and from the federal government,” accounting for over 83 million square feet of office space.

The GAO recommends that agencies reassess their respective needs, using “benchmarks…that account for greater levels of telework.” It also notes that there is a “unique opportunity to reconsider the federal government’s real property portfolio.”

Getting rid of unused real estate could also have positive effects outside of federal balance sheets. “In the local economy, unneeded properties and land could be put to productive use,” the report notes. “Selling a federal building to the private sector also can increase the local tax base, as federal buildings are generally exempt from local taxes.”

Reason previously reported on an earlier version of the final report, related to data compiled by government watchdog organization OpenTheBooks.com, showing that government agencies spent more than $3.3 billion on office furniture since the beginning of the pandemic even as their buildings sat largely vacant.

Entertainment

MTV EMAs red carpet: Stars arrive in Manchester ahead of ceremony

Published

28 mins ago

November 10, 2024

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MTV EMAs red carpet: Stars arrive in Manchester ahead of ceremony

Music stars have hit the red carpet in Manchester for the MTV Europe Music Awards.

Taylor Swift leads the nominations this year, with singers including Sabrina Carpenter, Raye, Charli XCX, Beyonce, Coldplay and Eminem also up for prizes.

It is the first time the MTV event, which was cancelled last year amid security concerns, has taken place in the UK since 2017, when it was held in London.

Manchester is well represented, with DJ Paulette, Blossoms, and Happy Mondays stars Shaun Ryder and Bez among the guests.

Here are the pictures as they come in from the red carpet.

US

Donald Trump’s top team: Who is in, who is out and who are the leading contenders?

Published

29 mins ago

November 10, 2024

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Donald Trump's top team: Who is in, who is out and who are the leading contenders?

As the dust settles on Donald Trump’s US election win, the president-elect has begun choosing who will be in his administration for his second stint in the White House.

During the campaign, Mr Trump avoided directly confirming any appointments but frequently dropped hints about who he would like in his top team.

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So who is in, who is out and who are the leading contenders for jobs?

Who is in?

Susie Wiles

Susie Wiles is a veteran Republican campaign manager – having helped Ronald Reagan and Ron DeSantis get elected as well as Donald Trump in 2016 and 2024. She is the first member of his team to be announced – and becomes the first female chief-of-staff in American history.

The 67-year-old, who lives in Florida, has a political career that spans decades but has largely kept out of the limelight and rarely given interviews.

She is the daughter of late American footballer Pat Summerall and one of her first jobs in politics was as an assistant to one of his former New York Giants teammates when he became a Republican representative.

Outside politics, she has worked in the private sector as a lobbyist, for both Ballard Partners, whose clients include Amazon, Google, and the MLB (Major League Baseball), and then Mercury, which works with Elon Musk’s SpaceX and the Embassy of Qatar.

This time around, Mr Trump credited her with his “best-run” presidential campaign, describing her as “incredible” at a Milwaukee rally earlier this year, and an “ice maiden” in his victory speech.

Who is out?

Nikki Haley

Ms Haley was once Mr Trump’s main rival during his run for the Republican presidential nomination.

Despite losing the contest, she proved her popularity with parts of the GOP and previously served in his first presidential cabinet as the US ambassador to the United Nations.

The 51-year-old also served as governor of South Carolina but news of her not being involved this time around was broken by the president-elect on his own social media platform, Truth Social.

In a short statement, Mr Trump said he would not be inviting either her nor former secretary of state Mike Pompeo back but thanked them for their service.

In response, Ms Haley, who eventually endorsed Mr Trump despite harshly criticising him in the party primaries, said: “I was proud to work with President Trump defending America at the United Nations.

“I wish him, and all who serve, great success in moving us forward to a stronger, safer America over the next four years.”

Mike Pompeo

Mr Pompeo also served as the director of the CIA under Mr Trump and had been mentioned in some reports as a possible defence secretary or in relation to another role linked to national security, intelligence or diplomacy.

Mr Trump confirmed Mr Pompeo would not be returning to his cabinet in the same post that he ruled out Ms Haley.

Previously among Mr Trump’s closest allies, Mr Pompeo is one of the fiercest US defenders of Ukraine.

Mike Waltz, a congressman from Florida, and Tom Cotton, a Harvard College and Harvard Law School-educated Army officer-turned-senator from Arkansas, are also believed to be in the running for the defence role.

Who is yet to be decided?

Elon Musk

Tech billionaire Elon Musk became one of Mr Trump’s staunchest supporters in the months leading up to the election and spent at least $119m (£92m) canvassing for him in the seven battleground states.

His loyalty looks set to be rewarded as Mr Trump has promised the X owner a role as the head of a new Department of Government Efficiency (or DOGE for short, a reference to the Dogecoin cryptocurrency Mr Musk often promotes).

The department would be “tasked with conducting a complete financial and performance audit of the entire federal government”, Mr Trump said at an event in September.

It could give the billionaire the power to slash through the US federal bureaucracy both he and Mr Trump say has long held America back.

Robert F Kennedy Jr

Robert F Kennedy Jr abandoned his independent presidential campaign to back Mr Trump in August.

It was a move that saw the prominent vaccine sceptic condemned by many members of his family, but as with Musk, his public support looks set to be rewarded by the president-elect.

Mr Trump has pledged to give him a role focusing on health policy and Mr Kennedy has hinted at one possible initiative, stating on X that “the Trump White House will advise all US water systems to remove fluoride from public water”, on inauguration day.

Mr Kennedy – the son of politician Robert F Kennedy and the nephew of assassinated president John F Kennedy – made a name for himself as a vaccine sceptic during the COVID-19 pandemic and has frequently repeated debunked claims, including linking vaccines to autism in children.

Don Jr, Eric and Lara Trump

Mr Trump’s daughter and son-in-law, Ivanka Trump and Jared Kushner, were among his senior advisers during his first term. But will the businessman once again keep any family members close when he is in the Oval Office?

In June 2023, Mr Trump said he did not want his children to serve in a second administration, saying it was “too painful for the family”.

Nevertheless, while Ms Trump and Mr Kushner have stayed away from politics since, two of Mr Trump’s other sons – Don Jr and Eric – have played prominent roles on the campaign trail.

Eric’s wife, Lara Trump, already has a significant role in US politics, as she serves as co-chair of the Republican Party.

Richard Grenell

Among Mr Trump’s closest aides on foreign policy, Richard Grenell is thought to be a potential pick for national security adviser.

His private dealings with foreign leaders and often caustic personality have made him into a controversial figure, but he could well be part of Mr Trump’s second administration.

Mr Grenell has in the past supported establishing an autonomous zone in eastern Ukraine to end the war, an idea that Kyiv rejected as unacceptable.

Larry Kudlow

Fox News personality Larry Kudlow served as director of the National Economic Council for much of Mr Trump’s first term and is said to have an outside shot at becoming his treasury secretary this time around.

Other names being linked to the post include John Paulson – a billionaire hedge fund manager and donor, who hosted a fundraiser that raked in more than $50m (£38m) for the former president.

Marco Rubio

Marco Rubio, a Florida senator who unsuccessfully ran against Mr Trump to be the Republican’s presidential candidate in 2016, is a potential candidate for secretary of state.

His policies are very much in line with Mr Trump’s and he was a contender to be his 2024 running mate before JD Vance landed the role.

Bill Hagerty – another of the running mate contenders – is also being linked to the position, as is Robert O’Brien, who served as Mr Trump’s fourth and final national security adviser during his first term.