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USDA Transfers Largely Vacant South Building to GSA for Disposal

Officials say the handoff averts roughly $1.6 billion in deferred repairs, with GSA now evaluating reuse, sale or other paths.

Overview

  • The 1930s-era complex, spanning roughly 2.0–2.2 million square feet on Independence Avenue SW, is more than 80% empty and carries about $1.6 billion in deferred maintenance, according to GSA.
  • GSA added the property to its accelerated disposition activity but set no timeline, saying it will consult stakeholders and the private sector before deciding on reuse, transfer, sale, demolition or redevelopment.
  • USDA plans to move thousands of Washington-area employees by year-end to five regional hubs in Raleigh, Kansas City, Indianapolis, Fort Collins and Salt Lake City, shrinking its D.C.-area workforce from about 4,600 to roughly 2,000.
  • Officials frame the move as part of President Trump’s push to reduce underused federal real estate and relocate staff closer to constituents, with USDA also exiting its Braddock Place lease and shifting Food and Nutrition Service staff to other nearby facilities.
  • Local reporting projects around 2,500 Washington jobs affected as roles shift, and potential reuse scenarios include residential conversion, though shared systems with the adjacent Whitten Building and other complexities will factor into GSA’s review.