U.S. Has Now Canceled About One in 10 Active Federal Commercial Real Estate Leases

GSA Leasing & Federal Real Estate attorney Gordon Griffin was quoted in a CoStar article about the recent acceleration in federal commercial real estate lease terminations by the Department of Government Efficiency (DOGE). DOGE's latest list of lease cancellations shows terminations have spread to all 50 states and represent about 10 percent of the U.S. General Services Administration's (GSA) portfolio. The article highlighted the impact of these cancellations on property owners and service providers. Mr. Griffin noted he's heard from clients that some of the terminations are for fully utilized spaces and commented about the next steps in these situations.

"Given the broad brush approach to terminating leases, it's possible that the government will need to negotiate succeeding leases for tenants in these terminated leases," he said.

READ: U.S. Has Now Canceled About One in 10 Active Federal Commercial Real Estate Leases