USDA Plans to Sell Portions of Headquarters Complex as Part of Major Employee Relocation Strategy in D.C.

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USDA Plans to Sell Portions of Headquarters Complex as Part of Major Employee Relocation Strategy in D.C.

The U.S. Department of Agriculture (USDA) is planning to sell its South Building in Washington, D.C. as part of a broader effort to reorganize the agency. This move comes as the USDA looks to shift a significant portion of its workforce to regional hubs across the country.

Agriculture Secretary Brooke Rollins highlighted that over 70% of the offices in the South Building are empty day-to-day. During a press conference, she described the building as “a former shell of what it once was,” with rows of vacant offices lining the halls.

While USDA hasn’t detailed exactly where employees will go, they are expected to announce specifics soon. By the end of the year, many USDA employees will transition to five new hubs located in Raleigh, North Carolina; Kansas City, Missouri; Indianapolis, Indiana; Fort Collins, Colorado; and Salt Lake City, Utah.

According to USDA Deputy Secretary Stephen Vaden, the agency aims to finalize the relocation by the upcoming school year, mindful of employees with school-aged children. “We want to ensure a smooth transition,” he said.

The move to sell the South Building also has financial implications. GSA Administrator Edward Forst noted that the building has significant maintenance costs, estimated at $1.6 billion, making it a heavy liability for the General Services Administration (GSA).

This effort aligns with past directives from the Trump administration, which sought to reduce the size of the federal real estate portfolio. The goal, as Forst put it, is to turn underutilized spaces into economic opportunities.

Interestingly, the USDA isn’t alone in this effort. Other agencies like the Department of Housing and Urban Development and the IRS are also downsizing their office spaces. The Public Buildings Reform Board recently reported that the GSA requires $50 billion for outstanding repairs—money that isn’t realistically available from Congress. Therefore, offloading buildings is seen as a necessity.

If USDA successfully sells the South Building, they predict an 80% utilization rate for their buildings in D.C., surpassing a government-wide standard of 60%. This aligns with the USE IT Act, which mandates that federal agencies must optimize their office space.

In recent years, USDA’s workforce expanded by 8%, with salaries increasing by around 15%. However, Rollins pointed out that this growth did not lead to improved services for constituents. She criticized the surplus of vacant offices as a waste of taxpayer dollars, referring to the situation as indicative of government excess.

Moreover, USDA is relocating its Food and Nutrition Service staff from a leased space in Alexandria back to other USDA buildings, after employees raised concerns over the condition of their current office.

This reorganization marks a significant shift from previous attempts in 2019 when many employees opted to leave rather than relocate to Kansas City. This time, Vaden anticipates a higher acceptance rate of relocation offers, partly due to the challenging job market in the D.C. area.

As the USDA implements these changes, it reflects a broader trend in federal agencies to adapt and optimize their operations, ensuring they serve communities more effectively while addressing financial liabilities. For more related information on federal real estate and the ongoing reforms, you can refer to the U.S. General Services Administration’s official site.



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