What Happens When the Government Offloads Billions in Real Estate?

Imagine being called back to the office only to find out your office doesn’t exist anymore. That’s the reality for many federal employees as the U.S. government moves to offload up to two-thirds of its real estate portfolio - a staggering 370 million square feet across the country. With lease cancellations in D.C. alone projected to reach 75%, what does this mean for the office market, commercial landlords, and surrounding businesses? Could this trigger a real estate crash in key cities?

In this episode, we break down:

- Why the U.S. government is shrinking its office footprint and what it signals about the future of commercial real estate

- The impact on landlords and investors—who stands to lose, and who might seize an opportunity

- How cities like D.C., L.A., Denver, and Kansas City will be affected by the loss of government tenants

- Potential ripple effects across retail, hospitality, and multifamily housing as office demand collapses

- The case for converting office buildings to apartments—is it financially viable?

- Speculation on discounted government property sales—how low could prices go, and what does it mean for taxpayers?

This is the largest shift in federal real estate history—and it could reshape urban markets for years to come. What do you think? Is this a necessary move to cut waste, or could it create long-term economic disruptions? Tune in for expert insights.

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Credits

Producer: Blue Lake Capital

Strategist: Syed Mahmood

Editor: Emma Walker

Opening music: Pomplamoose

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