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GSA Sells Long-Vacant D.C. Federal Office to Dalian Development

Officials tout the deal as a template for shedding costly empty space.

Overview

  • GSA, which finalized the sale Wednesday, transferred the former Regional Office Building at 301 7th St SW in Southwest Washington to Dalian Development.
  • The agency says the move avoids more than $200 million in deferred repairs and cuts about $5.5 million a year in operating costs.
  • Sen. Joni Ernst promoted the sale as a taxpayer win, citing over $205 million in savings and saying $500 million in upgrades will no longer fall to the public.
  • Dalian Development plans a long-term mixed-use project in a neighborhood that has been shifting to homes, shops, and restaurants near L’Enfant Plaza.
  • GSA and allied officials call the transaction a blueprint for more sales recommended by the Public Buildings Reform Board, a bipartisan panel that flags underused federal buildings, as the maintenance backlog tops $6 billion with projections that it could reach $20 billion.