The U.S. federal government holds a massive portfolio of real estate, and for over a decade, there has been bipartisan agreement on the need to sell underutilized properties. However, standard disposal methods have proven slow and complex, often frustrating potential buyers.
While programs designed to streamline these sales have yielded only modest results, an effective but lesser-known alternative exists: targeted legislation. This approach allows private entities and local governments to bypass bureaucratic hurdles and acquire federal assets more directly.
Key Takeaways
- The U.S. government has been working to reduce its extensive real estate portfolio to save on maintenance costs.
- The 2016 FASTA law was created to speed up property sales but the process remains lengthy and complicated.
- Targeted legislation offers a highly effective alternative for acquiring federal property, enabling direct sales and transfers.
- Successful transactions, like the sale of the Webster School in Washington D.C., demonstrate the power of legislative action.
- The Public Buildings Reform Board's mission to identify properties for disposal has been extended through 2026.
The Government's Real Estate Challenge
Washington has long recognized the need to shrink its physical footprint. The federal government owns a vast collection of buildings and land, with maintenance and operational costs running into the billions annually. The core issue is simple: many of these properties are no longer used efficiently, representing a significant financial drain on taxpayers.
Efforts to offload these assets have been a consistent, if slow-moving, priority across different administrations. The logic is sound and enjoys support from both sides of the political aisle. Selling surplus property generates revenue, reduces long-term expenses, and can return valuable land to productive use in local communities.
A Massive Portfolio
In 2016, at the time the Federal Assets Sale and Transfer Act was enacted, the federal government's real property holdings totaled approximately 2.8 billion square feet. Despite years of effort, only a small fraction of this has been sold.
The primary obstacle has never been the goal, but the process. The traditional method for property disposal, established by the Federal Property and Administrative Services Act of 1949, is a multi-step, often cumbersome affair that can take years to complete.
FASTA: An Attempt to Streamline Sales
To address these delays, Congress passed the Federal Assets Sale and Transfer Act (FASTA) a decade ago. The law was designed to create a more modern and strategic mechanism for identifying and selling high-value federal properties. It established an independent body, the Public Buildings Reform Board (PBRB), tasked with a clear mission.
The Role of the PBRB
The PBRB's job is to analyze the federal inventory, pinpoint properties that are ripe for disposal, consolidation, or redevelopment, and make formal recommendations to the Office of Management and Budget (OMB) and the General Services Administration (GSA). Once a property is recommended for disposal, federal agencies have a two-year deadline to start the process and six years to complete the sale.
Despite this structured approach, the results have been limited. While several million square feet of property have been sold under FASTA, it represents a tiny portion of the overall federal portfolio. For private sector buyers accustomed to a faster pace, the timelines and inherent risks of the process remain significant deterrents.
Board's Mandate Extended
The work of the Public Buildings Reform Board was originally set to conclude in May 2025. Recognizing the ongoing need to address the government's real estate inventory, its operations have been reauthorized, with a new sunset date of December 31, 2026. This extension signals a continued federal commitment to property disposal.
The Legislative Alternative: A Direct Approach
For those interested in acquiring federal property, there is a powerful and often overlooked alternative to the standard administrative channels: direct legislative action. Over the past two decades, Congress has enabled dozens of successful property transfers through standalone bills or provisions within larger legislative packages.
"Whether through standalone bills or as part of larger legislative packages, congressional action has enabled dozens of successful property transfers over the past two decades," noted Elliot Doomes, a former GSA Public Buildings Service Commissioner and senior counsel at Husch Blackwell.
This method can take several forms:
- Direct Sales: Legislation can authorize the GSA to sell a specific property to a designated buyer, bypassing the competitive auction process.
- Long-Term Leases: Congress can approve long-term lease agreements that give entities control over a property for development.
- Jurisdictional Transfers: Federal land can be transferred directly to local or state governments for public use, such as parks or community facilities.
A Case Study in Success
The recent sale of the Webster School in Washington, D.C., provides a clear example of how legislation can accelerate a transaction. In July 2023, Del. Eleanor Holmes Norton and Rep. Scott Perry introduced a bill specifically authorizing the school's sale. After the bill passed the House, the GSA proceeded with an auction.
The property sold for $4.138 million in December 2024, with the deal finalized just months later. This timeline is significantly faster than what is typically seen through the standard disposal process, illustrating the effectiveness of a targeted legislative push.
Navigating the Path to Acquisition
The government's desire to dispose of underutilized real estate is clear and persistent. For potential acquirers, channeling this desire through a legislative strategy can unlock what some experts call "once in a lifetime" opportunities. This applies not only to properties yet to be identified but also to those already on the PBRB's list for disposal.
However, this path requires a different set of tools and expertise. Success depends on understanding the legislative process, building coalitions, and articulating a clear public policy benefit for the transfer. According to former officials, interested parties should seek out advisors with deep knowledge of both the administrative and legislative mechanisms governing federal real estate.
By aligning the interests of a potential buyer with the government's long-standing goal of efficient property management, targeted legislation can create a win-win scenario. It provides a more certain and often faster route for the buyer while helping the government achieve its cost-saving objectives.
