The federal government on Wednesday officially sold an office building that had been vacant since March 2025, a move expected to save the U.S. at least $200 million.
The U.S. General Services Administration (GSA) confirmed in a press release Wednesday the sale of the former GSA Regional Office Building (ROB) at 301 7th St SW, Washington, D.C. to Dalian Development. Republican Iowa Sen. Joni Ernst praised GSA Administrator Edward C. Forst for pushing the deal through.
“After years of working to put empty and expensive federal buildings up for sale, today, the GSA Regional Office Building is officially sold!” Ernst told the Daily Caller News Foundation. “Even though this building has been vacant, the American people have still been footing the bill. With this sale, we are saving Americans over $205 million and taking an additional $500 million in required updates off taxpayers’ tab. I’m thankful Administrator Forst and the Trump administration are putting taxpayers first.”
The building serving as GSA’s ROB was originally constructed between 1929 and 1932 as a warehouse before being converted later into office space, the GSA said in its announcement. Dalian Development plans to turn the building into a multi-use facility, with residences, restaurant space and stores, according to the GSA release.
A Public Buildings Review Board (PBRB) report released March 5 estimated it would cost $50 billion to clear up the building’s maintenance backlog, an amount more than twice what the GSA had previously estimated. The report noted that GSA was “chronically underfunded” compared to industry standards for building maintenance.
PBRB praised the sale of the building in a statement sent to reporters Wednesday.
“The bi-partisan Public Buildings Reform Board (PBRB) is pleased to see the General Services Administration (GSA) has sold the Regional Office Building, located at 301 7th Street, SW, Washington DC,” the agency said. “The Regional Office Building is one of the many buildings PBRB has recommended for disposition or consolidation by the federal government. It was included in PBRB’s Second Round Report, issued in May 2025.”
“GSA has historically received funds equal to about 0.375% of the portfolio’s Functional Replacement Value (FRV), far below the industry standard of 2–4% considered sustainable,” the reports stated.
In January, the United States Postal Service (USPS) admitted that 285 of its buildings across the country are partially or completely unused. A February report from the Department of Agriculture stated that despite a return to the workplace mandate that doubled building usage, the agency is still only using a third of the space in its D.C. headquarters.
In a 60-page report released on Dec. 5, 2024, that covered findings from her investigations into telework issues, Ernst noted that largely vacant office buildings resulting from the liberal remote work policies established during the COVID-19 pandemic and continued through the Biden administration had detrimental effects on the environmental quality in the workplaces.
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