GSA Administrator Edward Forst Rejects Mass Selloff Strategy for Federal Office Portfolio

GSA Administrator Edward Forst testified before Congress, favoring agency colocation over mass sales to optimize the federal government's aging office portfolio.

By: AXL Media

Published: Mar 6, 2026, 6:27 AM EST

Source: Bisnow

Strategic Consolidation Over Liquidations

Edward Forst, the former Cushman & Wakefield CEO who took the helm of the GSA in December, outlined a vision centered on "colocation" during his Wednesday testimony on Capitol Hill. Forst informed the House transportation and infrastructure subcommittee that his team has identified several opportunities to house multiple federal agencies within single buildings. By creating these shared environments, the GSA intends to vacate underutilized properties, which could then eventually be prepared for sale or redevelopment. This move marks a strategic pivot toward operational efficiency rather than a primary focus on real estate divestment.

The Crumbling State of Federal Infrastructure

During a notable moment in the hearing, Forst emphasized the urgency of infrastructure reform by holding up a piece of concrete that had reportedly fallen off the J. Edgar Hoover Building. The FBI’s headquarters has long been a symbol of the maintenance backlog facing federal properties in Washington, D.C. The demonstration served as a visual reminder of the "deferred maintenance" crisis, highlighting that many federal buildings require significant investment or replacement. Forst's testimony suggests that consolidation is not just a cost-saving measure, but a necessity driven by the physical decay of existing facilities.

Regional Impact on the Washington D.C. Market

The GSA’s strategy has profound implications for the Washington, D.C. real estate market, where the federal government remains the dominant tenant and owner. If the GSA successfully colocates agencies, it could lead to a significant amount of office space being returned to the private sector for residential conversion or mixed-use development. However, by avoiding a "grand plan" for immediate sales, the GSA is signaling a measured approach that avoids flooding a market already struggling with high vacancy rates. This cautious pace may provide local developers more time to plan for high-scale redevelopments of former government sites.