91视频

The Trump administration鈥檚 push to sell federal office buildings across the nation 鈥� including two totaling more than 900,000 square feet in Portland 鈥� appears to be far from dead.

A revised version of the 鈥渘on-core鈥� federal properties list is being prepared, a spokesperson for the General Services Administration, the federal property management agency, stated on Monday.

鈥淲e anticipate the list will be republished in the near future after we evaluate this initial input and determine how we can make it easier for stakeholders to understand the nuances of the assets listed,鈥� stated the GSA spokesperson, who declined to be named.

Last week, the GSA posted and then took down a list of 鈥渘on-core鈥� federal properties to be sold. It鈥檚 unclear if the buildings will be added to the market, although the agency is listening to offers, according to the spokesperson.

The local federal buildings initially intended for sale, according to Wired, which has maintained a database of the unpublished list, include:

• The Edith Green 鈥� Wendell Wyatt Federal Building is in downtown Portland, at 1220 S.W. Third Ave. The 18-story, 512,474-square-foot office building was completed in 1974 and substantially renovated in 2013 by Howard S. Wright, with design by SERA Architects. It鈥檚 a recognizable contributor to Portland鈥檚 riverfront skyline.
• The Bonneville Power Administration鈥檚 headquarters is in the Lloyd District at 905 N.E. 11th Ave. The building, completed in 1985, totals 417,324 square feet.
• The Vancouver Federal Building is in Vancouver, Washington, at 500 W. 12th St. It鈥檚 a two-story office building that houses an Internal Revenue Service office.

A glut of office space

The Trump administration鈥檚 threat to unload large-scale federal office buildings now risks selling into a weak market.

Substantial economic data suggests the office market, particularly in Portland鈥檚 urban core, where the federal buildings are located, is in a fragile recovery that could be washed away by a flash flood of unneeded inventory.

Greg Goodman, co-president of Downtown Development Group, noted that Portland has approximately 10.5 million square feet of vacant office space. In a good year, the market absorbs about 400,000 square feet 鈥� meaning Portland has about a 25-year supply of vacant office space.

Given that reality, if the federal government wants to dispose of office space, waiting may not make sense, Goodman said. 鈥淭he market is where the market is, and if you want to wait, you鈥檙e going to be waiting a while.鈥�

Net absorption in Portland was negative 964,776 square feet in 2024, according to JLL, meaning tenants put nearly 1 million square feet back into the market. Urban office vacancy hit 29.9 percent and may not have reached its peak, according to analysts.

鈥淣ear-term negative absorption is expected to persist as two sizable occupancy losses remain on the horizon,鈥� JLL stated in its fourth-quarter report, citing moves by U.S. Bank and Standard Insurance.

鈥淗owever, Portland office vacancy is approaching its peak and positive absorption is expected after the market works through these announced give-backs,鈥� JLL reported.

Pain in Portland鈥檚 office market appears to be spreading. Last week, lender Ready Capital indicated on a call with investors that it was considering taking possession of the Block 216 tower, which includes 134,000 square feet of office space on five floors in addition to a Ritz-Carlton hotel, condominiums and retail space.

Investors have seen a 鈥渇light to quality,鈥� where new, Class-A office buildings are performing better than their older peers. Some law firms and other professional services firms have committed to downtown office space, signing lengthy leases. Still, the office market remains far from its pre-pandemic peak.

鈥淚t鈥檚 definitely weak,鈥� Goodman said.

Investors see opportunities

Yet some investors are skeptical that a major federal office sell-off will come to pass.

Menashe Properties doubled down on urban office space when it purchased the Montgomery Park building for $33 million in August 2024. Jordan Menashe, the firm鈥檚 CEO, said he doesn鈥檛 expect President Donald Trump to purge government office space.

鈥淚t would inflict too much pain,鈥� he said. 鈥淚t doesn鈥檛 make sense.鈥�

Menashe said some federal agencies could choose to execute sale-leasebacks.

鈥淩emember,鈥� Menashe said of Trump, 鈥渉e鈥檚 a real estate guy.鈥�

The Trump administration鈥檚 鈥渘oise first and think later strategy is backfiring,鈥� Buzz Ellis, managing director for JLL in Portland, stated in an email.

鈥淢any of those federal buildings have significant infrastructure in them,鈥� he added.

But Goodman said it makes sense for the federal government to consider selling real estate.

鈥淚f they鈥檙e signing a lease in the building and then selling it, that鈥檚 great,鈥� he said.

Institutional investors will line up to purchase the buildings, Goodman said.

鈥淚nstitutions will buy these as financial instruments,鈥� he said. 鈥淭here is no better credit than the federal government. If you have a 20-year lease, that鈥檚 better than a 20-year bond.鈥�

Oregon鈥檚 state government should also consider sale-leasebacks of some of its real estate, Goodman said.

Menashe said he鈥檚 noticed signs of life in the office market. Competition has increased among institutional investors such as New York Life, which has snapped up distressed office properties in San Francisco.

鈥淭he institutions are back,鈥� he said.

Return to what office?

The GSA鈥檚 website states the government is 鈥渋dentifying buildings and facilities that are not core to government operations, or non-core properties, for disposal. Selling ensures that taxpayer dollars are no longer spent on vacant or underutilized federal spaces. Disposing of these assets helps eliminate costly maintenance and allows us to reinvest in high-quality work environments that support agency missions.鈥�

The initial 鈥渘on-core鈥� property list also included the Washington headquarters of numerous federal agencies, including the Federal Bureau of Investigation, the Department of Labor and the Department of Housing and Urban Development, The Associated Press reported.

鈥淭o be clear, just because an asset is on the list doesn鈥檛 mean it鈥檚 immediately for sale,鈥� the GSA spokesperson stated. 鈥淗owever, we will consider compelling offers (in accordance with applicable laws and regulations) and do what鈥檚 best for the needs of the federal government and taxpayer.鈥�

The GSA spokesperson stated that the goal of publishing a list of 鈥渘on-core鈥� real estate assets was two-fold: to 鈥渁lign with the president鈥檚 direction to bring federal employees back to high-performing office spaces throughout the country鈥� and to 鈥渄rive maximum value for the federal real estate footprint for the benefit of the American taxpayer.鈥�

The move to sell off federal offices is in addition to lease cancellations that DOGE (the Department of Government Efficiency) is also considering, according to reports.

Some commentators have noted that the Trump administration鈥檚 push to sell federal buildings comes at the same time as the administration has ordered workers back to the office. The Office of Personnel Management, in a Jan. 28 email, told federal workers, 鈥淭he substantial majority of federal employees who have been working remotely since Covid will be required to return to their physical offices five days a week,鈥� The Associated Press reported.

That matches comments from Trump, who said publicly, 鈥淵ou have to go to your office and work. Otherwise, you鈥檙e not going to have a job.鈥�