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U.S. Office Space Shrinks 16.2 Million Sq. Ft.

By Drooid · Oct 30, 2026 · How we work

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Summary

U.S. federal agencies reported a 2.69% drop in office building area and a 0.79% cost rise for FY 2025.
Gross office space fell from 601.045 million to 584.880 million square feet, a loss of 16.165 million sq ft.
Annual office costs rose to $8.439 billion, up $65.9 million, with owned costs up $282.5 million and leased costs down $214.7 million.
Cost per square foot climbed to $14.43, a 3.57% increase, according to the GSA FY 2025 Real Property Profile.

History

Created in 1949 to manage the federal estate of roughly 363 million square feet, the General Services Administration first cut office space during the 2008 Great Recession, shedding 5.2 million sq ft and saving $1.3 billion, while the Department of Defense trimmed about 1 million sq ft. The FY 2025 profile repeats that pattern, showing a 2.69 % drop to 584.9 million sq ft, echoing earlier real-estate consolidations driven by fiscal pressure.

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Created in 1949 to manage the federal estate of roughly 363 million square feet, the General Services Administration first cut office space during the 2008 Great Recession, shedding 5.2 million sq ft and saving $1.3 billion, while the Department of Defense trimmed about 1 million sq ft. The FY 2025 profile repeats that pattern, showing a 2.69 % drop to 584.9 million sq ft, echoing earlier real-estate consolidations driven by fiscal pressure.

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