Exploring GSA's Widespread Lease Terminations
A GSA official stated that approximately 3,000 federal leases are eligible for termination without incurring any penalties.
TroibNews 
The recent decision by the Department of Government Efficiency to eliminate nearly 750 federal land leases has created confusion across the federal government, potentially leading to the closure of IRS help centers just weeks before tax returns are due and leaving prosecutors managing drug cases near the border without office space.
These cancellations might unsettle real estate markets in areas with a significant federal presence, including Washington, D.C., the tri-state area, and Kansas City, Missouri. They have already impacted 30 Social Security buildings nationwide, as reported by DOGE.gov, along with the National Centers for Environmental Prediction in Maryland, which provides data for the National Weather Service, according to the Verge.
The General Services Administration's Public Buildings Service, responsible for managing federal buildings, was directed to terminate leases that allow for early exits without substantial consideration for the existing workforce or the space involved, according to a GSA official who spoke on condition of anonymity.
The cancellation of millions of square feet of government office spaces aligns with DOGE's strategy for swift implementation of significant cost-cutting measures that will profoundly affect the federal workforce — and will be challenging to reverse. DOGE claims that the lease cancellations have already saved $660 million, though this figure may be inflated as it includes lease months already paid and other factors.
To execute this strategy, officials compiled a list of all federal leases allowing for termination rights and coordinated the agency lists with the respective political appointees. Approximately 3,000 federal leases are currently in their “soft term” phase, meaning they can be terminated without penalty or buyout. This figure represents nearly half of GSA's portfolio of over 7,000 leases.
In the past week, hundreds of Docusign packages containing formal termination notices have been sent, often arriving unexpectedly to property owners who typically coordinate with local GSA representatives for lease amendments.
“Most lease amendments of this sort are done locally, with known contacts so confusion is rampant,” noted the GSA official.
The expedited cancellation of contracts has already resulted in errors. Some leases flagged for termination do not actually contain termination rights, leading GSA to rescind notices after landlords pushed back. In other instances, property owners received unforeseen termination notices from unfamiliar GSA contacts, prompting a surge of urgent emails seeking clarification.
“We were completely shocked by this notice, especially considering that the IRS is actively occupying the entire space,” wrote Zaya Younan, the owner of a Phoenix office building that received a termination notice, in an email reviewed by PMG. “This location serves as the IRS’s main hub in Phoenix, and the office remains fully utilized with workers reporting to work daily.”
Younan speculated that the termination notice might be in error, asking GSA to confirm whether the termination was intended. The property is, in fact, one of over 110 IRS offices with taxpayer assistance centers designated for closure by the Trump administration.
In another case, GSA canceled the U.S. Attorney’s Office lease in Corpus Christi, Texas, leaving federal prosecutors who manage drug and immigration cases scrambling for new workspace. Additional terminations have also affected some offices of the U.S. Army Corps of Engineers, which oversees waterways and provides engineering support to the military.
This aggressive lease-cutting initiative aligns with the administration's efforts to reduce the federal workforce and enforce a strict return-to-office policy. As a result, many federal employees who retain their jobs will be forced into cramped, makeshift workspaces or left without office space altogether.
While mistakenly terminated employees can be reinstated relatively quickly, reversing lease terminations could be far more complex.
Once a lease termination notice is executed, reversing it is solely at the discretion of the property owner, according to the GSA official. Securing a new lease, renovating the space for government use, and relocating personnel typically takes around two years, assuming GSA's contracting staff is still available to manage the process.
Mathilde Moreau contributed to this report for TROIB News
These cancellations might unsettle real estate markets in areas with a significant federal presence, including Washington, D.C., the tri-state area, and Kansas City, Missouri. They have already impacted 30 Social Security buildings nationwide, as reported by DOGE.gov, along with the National Centers for Environmental Prediction in Maryland, which provides data for the National Weather Service, according to the Verge.
The General Services Administration's Public Buildings Service, responsible for managing federal buildings, was directed to terminate leases that allow for early exits without substantial consideration for the existing workforce or the space involved, according to a GSA official who spoke on condition of anonymity.
The cancellation of millions of square feet of government office spaces aligns with DOGE's strategy for swift implementation of significant cost-cutting measures that will profoundly affect the federal workforce — and will be challenging to reverse. DOGE claims that the lease cancellations have already saved $660 million, though this figure may be inflated as it includes lease months already paid and other factors.
To execute this strategy, officials compiled a list of all federal leases allowing for termination rights and coordinated the agency lists with the respective political appointees. Approximately 3,000 federal leases are currently in their “soft term” phase, meaning they can be terminated without penalty or buyout. This figure represents nearly half of GSA's portfolio of over 7,000 leases.
In the past week, hundreds of Docusign packages containing formal termination notices have been sent, often arriving unexpectedly to property owners who typically coordinate with local GSA representatives for lease amendments.
“Most lease amendments of this sort are done locally, with known contacts so confusion is rampant,” noted the GSA official.
The expedited cancellation of contracts has already resulted in errors. Some leases flagged for termination do not actually contain termination rights, leading GSA to rescind notices after landlords pushed back. In other instances, property owners received unforeseen termination notices from unfamiliar GSA contacts, prompting a surge of urgent emails seeking clarification.
“We were completely shocked by this notice, especially considering that the IRS is actively occupying the entire space,” wrote Zaya Younan, the owner of a Phoenix office building that received a termination notice, in an email reviewed by PMG. “This location serves as the IRS’s main hub in Phoenix, and the office remains fully utilized with workers reporting to work daily.”
Younan speculated that the termination notice might be in error, asking GSA to confirm whether the termination was intended. The property is, in fact, one of over 110 IRS offices with taxpayer assistance centers designated for closure by the Trump administration.
In another case, GSA canceled the U.S. Attorney’s Office lease in Corpus Christi, Texas, leaving federal prosecutors who manage drug and immigration cases scrambling for new workspace. Additional terminations have also affected some offices of the U.S. Army Corps of Engineers, which oversees waterways and provides engineering support to the military.
This aggressive lease-cutting initiative aligns with the administration's efforts to reduce the federal workforce and enforce a strict return-to-office policy. As a result, many federal employees who retain their jobs will be forced into cramped, makeshift workspaces or left without office space altogether.
While mistakenly terminated employees can be reinstated relatively quickly, reversing lease terminations could be far more complex.
Once a lease termination notice is executed, reversing it is solely at the discretion of the property owner, according to the GSA official. Securing a new lease, renovating the space for government use, and relocating personnel typically takes around two years, assuming GSA's contracting staff is still available to manage the process.
Mathilde Moreau contributed to this report for TROIB News
