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Social Security Administration To Shrink D.C.-Area Footprint

The office building at 5107 Leesburg Pike, where the Social Security Administration occupies 334K SF.

A new proposal could dramatically reduce the Social Security Administration's office footprint in the D.C. area. 

The General Services Administration sent a prospectus to Congress seeking approval to consolidate three SSA leases totaling 430K SF into one, 205K SF lease, the Washington Business Journal reports

The largest of the three existing leases is a 334K SF space at 5107 Leesburg Pike, part of the Somera Road-owned Skyline office complex in Falls Church. That lease had been set to expire last year before the GSA extended it for up to five years. 

The other two SSA leases the GSA is looking to consolidate are at JBG Smith's 2121 Crystal Drive in Crystal City and Saban Real Estate's 250 E St. SW in the District. The SSA is headquartered in Baltimore County, where it leases 825K SF in a deal that was extended for up to 10 years in 2018.

The SSA is one of a series of federal agencies the GSA is looking to consolidate in the D.C. area as it works through its backlog of expiring leases. The GSA has 7.5M SF of D.C.-area lease expirations this year and another 7.7M SF next year, according to a January Cushman & Wakefield report

In May, the GSA awarded nine contracts to brokerage firms with which it plans to execute nearly 39M SF in leases across the country. Last month, the GSA announced it would prioritize opportunity zones when looking to relocate federal agencies.