As part of its guidance on implementing governmentwide budget cuts, the Trump administration is instructing agencies to submit any plans for relocating offices out of the National Capitol Region by April 14.
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The guidance was issued via a memo from the Office of Management and Budget and Office of Personnel Management to all executive departments and agencies Wednesday, The Washington Post first reported.
Bisnow obtained a copy of the memo, which lays out instructions and timelines for agencies to report their progress in implementing President Donald Trump's Feb. 11 “workforce optimization” executive order, in conjunction with the Department of Government Efficiency.
The memo says agencies should report “any proposed relocations of agency bureaus and offices from Washington, D.C. and the National Capital Region to less-costly parts of the country” as part of the second phase of their reorganization and reduction in force plans.
The federal government leases 17.3M SF and owns 36.7M SF of offices in D.C., according to a JLL report released late last year. The report says 58% of the leased space was set to expire between 2024 and 2029. The government leases another 18.5M SF in Virginia and 10.9M SF in Maryland, according to S&P Global Ratings.
At the same time as this direction from the executive branch, there has been legislation proposed in Congress that seeks a similar outcome. The Strategic Withdrawal of Agencies for Meaningful Placement Act, or SWAMP Act, would direct agencies to solicit bids from municipalities around the country for potential relocations, Bisnow reported earlier this month.
During his first term, Trump moved two Department of Agriculture research agencies to Kansas City, Missouri. He also attempted to move the Bureau of Land Management to Colorado, a relocation the Biden administration reversed two years later.
Florida Gov. Ron DeSantis said last month that there was interest from NASA to relocate its headquarters to the Kennedy Space Center.
While a mass relocation of agencies away from the D.C. area could have huge implications for the region's economy, there is some skepticism in the market about how many offices will actually relocate.
“There has been talk about this with a lot of different Republican administrations,” a source involved with government leasing told Bisnow. “Bush talked about it, Reagan talked about it. But it never really happened. So I just don’t know if it’s realistic.”
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