What is Arizona’s exposure to potential cost-cutting efforts in federal real estate?

Article originally posted on Phoenix Business Journal on February 3, 2025

The General Services Administration (GSA), which oversees the federal government’s roughly 360 million-square-foot portfolio, could be a target of the cost-reduction efforts led by President Donald Trump’s newly formed Department of Government Efficiency. This includes real estate that’s leased and owned by the federal government in Arizona.

Recently, Stephen Ehikian was appointed as Acting Administrator and Deputy Administrator of the GSA to oversee more than $110 billion dollars in products and services through federal contracts, and the delivery of technology services across dozens of federal agencies, according to GSA’s website.

Billionaire Tesla CEO Elon Musk, who leads the Department of Government Efficiency, visited the GSA headquarters in Washington on Jan. 30, according to a report from the New York Times. Musk’s cost-cutting group “has so far focused on terminating leases of what it has called ‘mostly empty’ federal offices,” the New York Times reported.

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