The Quiet Unwinding of Federal Office Leases

For decades, the federal government has been one of the most stable tenants in the U.S. office market. Long lease terms, limited sensitivity to market cycles, and a willingness to occupy buildings that private tenants often bypass made federal agencies a stabilizing force, particularly in secondary and tertiary office stock. That stability is now eroding. Workforce reductions, telework policies, and a renewed focus on efficiency are pushing agencies to reassess how much space they actually need. The result is a steady, largely under-the-radar return of federal office space to the market.

This moment has been building for years.    ...more

RSK: There is more to this than just cancellations. Most lease cutbacks are owned by the Feds. Others are Class B space which may allow for adaptive reuse which lends itself to opportunity. Good article.