Federal agencies face an April 14 deadline to submit proposals for moving their office spaces out of Washington, D.C., as part of the broader push billed as a move to cut costs and decentralize the federal government.

While D.C.-area landlords and brokers lament the potential loss of major tenants, economic development and CRE professionals elsewhere in the U.S. are energized by the possibilities. But the realities and logistics of moving massive agencies and their employees are complex, and such an operation is unprecedented. 

“This is a new arena in economic development,” said John Boyd, principal at The Boyd Co., a site selection consultancy. “So much of the focus on relocating agencies has to do with creating efficiencies and saving the taxpayer money. It also represents an economic development opportunity for markets throughout the U.S.” 

Bisnow/created with assistance of OpenAI’s DALL-E

Agencies from NASA to Customs and Border Patrol are among those being courted by politicians and others from states across the country. Federal agencies lease roughly 35M SF of office space in D.C.

Ohio Gov. Mike DeWine has made a public push to bring the space agency’s headquarters to Cleveland, Ohio, assembling a bipartisan coalition of state lawmakers to support an effort to locate near the NASA Glenn Research Center. The Cleveland City Council sent a letter directly to Vice President JD Vance and NASA’s temporary administrator making its own appeal.

Aggressive pushes are also being made by Texas, Alabama and Florida, with the Sunshine State’s two senators introducing legislation to move NASA’s headquarters to Cape Canaveral, and local university leaders pushing the Space Coast, the site of the most rocket launches in the country.

But the process seems rushed relative to the realities of the leases in place, according to Diana Parks, executive chair of the National Federal Development Association, an industry group that leases space to government tenants.

“Have you ever packed two hours before you go into the airport?” Parks said. “You inevitably forget something. I think this is going to be one of these things that’s got a lot of issues and problems.” 

NASA itself isn’t in any rush.

“The NASA Headquarters building lease is up in 2028, and the agency is looking at options to lease a new facility in the Washington area,” NASA Press Secretary Bethany Stevens said in a statement to Bisnow. “In compliance with the Executive Order signed Jan. 20, NASA employees returned to full-time on-site work by no later than Friday, Feb. 28.”  

Parks said she believes any moves will take much longer than is currently recognized because the agencies lack the internal expertise to evaluate relocation options. This should be done through the General Services Administration, but the GSA has “already been decimated,” she said. 

Bisnow/Jon Banister

NASA headquarters in Washington, D.C. Many states are jockeying to be the new home of the nation’s space agency.

GSA is figuring out how to cut half its staff, an aggressive culling that has led to the loss of key personnel.

“To me, it seems a little performative,” Parks said. “It’s not going to result in immediate savings or receipts that can go up on the [Department of Government Efficiency] board. And I don’t think you can honestly say how much this is going to cost, because moving federal folks with the IT and the security is not inexpensive.”

Still, excitement over the possibility of relocating agencies and creating new economic development and real estate leasing opportunities has percolated. 

Boyd talked about the potential of, say, moving the National Institutes of Health to the Research Triangle in North Carolina, moving the Department of Transportation to Austin — a center of autonomous driving — or moving the Securities and Exchange Commission to one of the “new Wall Streets” like Dallas or Charlotte.

These are all hypotheticals, but he suggested that this is how local economic development officials are thinking about this opportunity and how congressional representatives, senators and governors are lobbying the federal government. 

@LtGovJimTressel and I sent a letter to President Trump this week to show our support for relocating @NASA‘s headquarters to @NASAglenn in Cleveland. Ohio is the birthplace of aviation, the heart of America’s aerospace industry, and a critical hub for advanced technology,… pic.twitter.com/LhQ8nBQ5FG

— Governor Mike DeWine (@GovMikeDeWine) March 15, 2025

In addition to efforts by DOGE and the Trump administration to move agencies out of D.C., a bipartisan group of lawmakers introduced the Strategic Withdrawal of Agencies for Meaningful Placement Act, or SWAMP Act, in February to decentralize the federal bureaucracy and move agencies out of the D.C. region.

Moving an HQ could create new leasing activity in a new market, including the additional organizations that interact with the agency such as startups and lobbyists. Boyd argues a relocated agency makes that market a center of that sector’s ecosystem and adds a flood of 9-to-5 office workers to a downtown area. Those workers could also be paid at lower rates that reflect cost of living in smaller cities.

“This was a model that [Elon] Musk has successfully utilized at Tesla,” he said. “A lot of workers will simply quit or resign. They’re not going to want to make the move. They’ll be replaced by workers at the lower end of the federal pay scale.”

But the speed at which DOGE and others are moving may not be factoring in the challenges of relocating large government agencies and swapping out real estate. There is a process the GSA has to go through to buy, sell or lease property to increase competition and make sure the government gets a fair price.

Parks said she has a number of government agency clients that are residing in leased space, and when they were told that the lease was canceled, they didn’t have any place to go or money for moving equipment and signing a new lease. 

In these scenarios, called a holdover, property owners can’t evict federal agencies because there’s a clause in the lease that means the agency simply needs to pay more rent. So if an attempt is made to move an agency before they’re ready, and without the proper planning and funding, holdover situations could mean more costs to taxpayers. 

There have been other efforts to relocate federal agencies from D.C. that highlight the challenges and opportunities of such a shift. The Bureau of Land Management was ordered to move to Grand Junction, Colorado, in 2019 during Trump’s first term, only to be relocated back to D.C. after former President Joe Biden took office. The agency ultimately lost 300 workers due to the initial move. A bill in Congress seeks to make the Grand Junction move permanent. 

The Federal Bureau of Investigation has been planning to move its headquarters to Greenbelt, Maryland, since 2023, only to have President Donald Trump vow to cancel the move. 

Parks points to the National Oceanic and Atmospheric Administration HQ’s move to College Park, Maryland, as an example of the kind of synergies and benefits such a relocation can bring. 

The agency has a spacious new headquarters due to cheaper real estate costs outside of the capital, and it can work with surrounding universities to collaborate on research and develop future talent. But that move took years to plan and act on. 

Parks said companies that move their headquarters spend years trying to maximize their savings. Expecting a government agency to do the same on a significantly abbreviated timeline may be wishful thinking, she said.

“It just absolutely underscores how misaligned the appropriateness of making this decision before you even know how many personnel are going to be employed,” she said. “You could say I have concerns.” 

Bellevue, WA-based Terreno Realty Corporation, an acquirer, owner and operator of industrial real estate in six major coastal U.S. markets, completed the redevelopment of a property in Santa Ana. Located at 1720 E. Garry Ave., the property is immediately adjacent to the Costa Mesa Freeway (CA 55) and less than two miles from the intersection of CA 55 and I-405 and John Wayne Airport.

The 4.9-acre property, which Terreno acquired in September 2023, contained three multi-tenant office buildings that were demolished. The redeveloped property contains a 92,000-square-foot rear-load industrial distribution building with 10 dock-high and two grade-level loading positions and parking for 145 cars for a total investment of $41.3 million.

The redeveloped property is LEED Silver certified and is 100% leased to a provider of temperature-controlled life sciences supply chain solutions. The estimated stabilized cap rate is 5.1%, according to Terreno.

Register Today to “Be in the Room” when Michael Brennan receives Connect CRE’s Lifetime Achievement Award and will participate in the Keynote Interview with Kevin Brennan, also of Brennan Investment Group. Join us at Connect Industrial Midwest 2025 on the afternoon of Wednesday, March 5, at Joe’s Live in Rosemont, IL, for this exclusive presentation! 

The Macy’s Inc. department store at WestShore Plaza in Tampa is closing. The department store said Thursday that it will close 66 stores across the U.S. Seven of those stores, including WestShore Plaza, are in Florida. A time frame for the store closures was not disclosed.

The Tampa Business Journal reports WPG, the mall owner, has been planning for the moment for a few years now and has been exploring redevelopment options. In late 2024, WPG paid $10 million for Macy’s real estate — the last remaining piece of WestShore Plaza that it did not own.

Macy’s (NYSE: M) is the second major retailer to close at WestShore Plaza in less than four months. Dick’s Sporting Goods left the mall to move down the road to International Plaza, where it opened its new concept Dick’s House of Sport in October.

WPG’s redevelopment plans include up to 3.5 million square feet of mixed-use development including entertainment, retail, dining, office, wellness, medical, hotel and residential components.

RIPCO Real Estate closed the sale of 350 Grand Concourse, a prime development site located in the Mott Haven neighborhood of the Bronx. The buyer, Shorewood Real Estate Group, acquired the site for $28.5 million from Atlantic Development & Investment. RIPCO represented the seller and buyer in this transaction.

350 Grand Concourse spans more than 31,000 square feet and features more than 300 feet of frontage along the Grand Concourse. The RIPCO team included executive managing directors Mitchel Flaherty and Brian Whelan, vice chairman Stephen Preuss and VP of investment sales Kevin Schmitz.

“We are extremely pleased to have played a key role in the sale of 350 Grand Concourse, a truly exceptional development site in one of the Bronx’s most dynamic neighborhoods,” said Flaherty. “Mott Haven’s ongoing transformation into a thriving residential and commercial hub presents an unparalleled opportunity for developers, and this site is perfectly positioned to capitalize on that momentum.”

The old Eastland Mall is now called Eastland Yards, and the developer, Crosland Southeast, has delivered its first project. Evoke Living, a 72-unit, 55-and-up multifamily community, recently opened its doors in East Charlotte.

It has one- and two-bedroom apartments and includes a mix of market rate and affordable units priced for residents who earn between 30% and 80% of the area median income.

Evoke also has 6,000 square feet of tenant amenities across all four floors that include a lounge and coffee bar, fitness center, computer room, screened in patio, multipurpose room and rooftop terrace.

The Charlotte Business Journal reports Truist Financial Corp. contributed $25 million to the project.

The overall Eastland Yards project calls for 470 housing units, including Evoke and a mix of single-family homes, townhomes, and market-rate multifamily, some of which are currently under construction. Also planned are a 5-acre county-owned park, retail and restaurants. 

DarwinPW Realty/CORFAC International recently brokered the sale of 2224 W. Grand Avenue in Chicago, a 9,600-square-foot building on a 0.29-acre site, to an undisclosed residential developer.

The property is home to Rainbow Art, Inc. and is zoned for a mixed-use development. DarwinPW’s Associates Marc Hale and Ali Nix brokered the transaction. “This property was originally on the market for more than eight months before DarwinPW Realty took over the listing,” said Hale.“We were able to quickly secure multiple offers, creating a competitive environment, ultimately leading to a sale with a qualified buyer who closed without contingencies, allowing for an expedited transaction.”

The property is located in the West Town neighborhood and is ideal for mixed-use development. It offers convenient access to the Western Avenue Metra Station and is within walking distance of the Damen Avenue Green Line station. The existing building features 12-to-16-foot clear heights, one drive-in door, and a two-story office.

Colliers facilitated the $24.5-million sale of Harmon Ranch on Oak Knoll, a land development site in Poway. SVP Ciara Trujillo, senior EVP David Santistevan and VP Erin McKinley brokered the deal on behalf of the sellers, Susan Lynn Roschke and Sherry Anne Urena, Successor Trustees of the Harmon Family Trust Agreement.

Harmon Ranch encompasses approximately 10.87 acres and is fully approved for 64 single-family homes. “The seller carefully selected Lennar Homes because of their thoughtful and considerate plan to provide 64 homes to the City of Poway,” said Trujillo. “We are excited to see this development come to life.”

Located at 12624, 12650 and 12702 Oak Knoll Rd., the property provides convenient access to local restaurants, gyms, car dealerships and shopping centers. Additionally, Harmon Ranch is less than a 30-minute drive from downtown San Diego and within a two-hour drive from Los Angeles and Riverside.

Don’t miss Connect Retail West happening on Wednesday, Nov. 6 in Los Angeles! Join the leading names and major industry players from ICSC, Caruso, Anderson Real Estate, Primestor, and more there. Be sure to register in advance; registration pricing increases on event day! 

Amazon has paid $277 million for a 220-acre site in Laveen that could be used as a data center campus. IDM Companies was the seller.

The Laveen property is located near Loop 202 and Dobbins Road, about 20 minutes west of downtown Phoenix. It is part of an industrial corridor the city wants to establish as a technology center. The Phoenix Business Journal reports it was one of two areas Taiwan Semiconductor Manufacturing Co. first considered for its Phoenix manufacturing complex.

In Mesa, plans are already underway for two Amazon data center projects, each with two main buildings and a total of 465,541 square feet. The company also plans to open three new facilities, each totaling more than 1 million square feet, across the West Valley, creating hundreds of new jobs.

Phoenix is the No. 2 market in the U.S. for planned data center growth, with 757 megawatts under construction and an additional 3,766 planned. The market is also home to all major cloud providers including Microsoft, Oracle, Google, Amazon Web Services and Meta.

Wellstone Health System has brought in The Integral Group to spearhead the effort to redevelop the shuttered Atlanta Medical Center. Construction will begin in the next few weeks.

The 22-acre campus vision includes a mixed-use neighborhood with affordable housing, residential properties, community and public green space, neighborhood-level retail, new street access, commercial uses, and health and well-being resources.

Over the next few weeks, Integral will develop an implementation plan and engage with neighbors and community stakeholders to gather further feedback. The revitalization effort will take place in phases over several years, with community input at every stage. In response to the neighborhood’s desire to see progress quickly, Integral expects to apply for permits soon with the goal of beginning the demolition of certain aging structures in the first quarter of 2025.

Wellstar closed Atlanta Medical Center in November 2022. Wellstar blamed the closure on falling revenue and increasing costs for staff and supplies.

 JLL Capital Markets closed the sale of 2 Hilton Ct., a 10.41-acre site, which will be redeveloped into a 123,000-square-foot warehouse in Parsippany, NJ by the purchaser, Link Logistics. Terms were not disclosed.

A JLL team led by senior managing directors Marc Duval and Jose Cruz, along with managing director Jordan Avanzato and directors Nicholas Stefans and Jason Lundy, worked on behalf of the seller, 2 Hilton Court LLC.

“The industrial market in northern New Jersey has been a strong performer despite the headwinds over the past few years and the quality locations that offer accessibility and labor remain a top choice for developers,” said Duval.

2 Hilton Ct. is located near the major I-80 and I-287 interchange in Morris County within the SED-10 zone, one of the specialized economic development districts in Parsippany. The site offers convenient access to major thoroughfares and is located less than 60 miles from three major international airports.