Most federal agencies utilize less than 25% of their office space, according to GAO.

Most Federal Agencies Underutilize Headquarters Space, GAO Report Finds

According to a recent report by the U.S. Government Accountability Office (GAO), the majority of federal agencies are using less than 25 percent of their headquarters space. This revelation came to light during a testimony by GAO Acting Director of Physical Infrastructure David Marroni before the House Transportation and Infrastructure Committee on July 13.

Marroni explained that an assessment was conducted earlier this year to determine the actual office space needs of federal agencies. The findings were surprising, as all 24 agencies assessed were found to have extra space, with most utilizing less than 25 percent of their headquarters capacity on average.

While the rise of remote and hybrid work due to the COVID-19 pandemic has contributed to the decline in office space utilization, Marroni emphasized that the issue predates the health crisis. Outdated buildings were identified as a major obstacle to consolidating and reconfiguring a modern workforce.

The GAO’s preliminary report highlighted several challenges faced by agencies in addressing this problem, including funding limitations, concerns about attendance policy changes, reluctance to share space with other agencies, and a lack of consistent standards for office utilization.

It is important to note that the assessment is still ongoing, and further actions will be taken to address the issue.

Keeping the Lights On

The General Services Administration (GSA) estimates that the federal government owns approximately 511 million square feet of office space, incurring billions of dollars in annual maintenance costs.

Among the agencies reviewed by the GAO, some were found to be utilizing a higher percentage of their headquarters’ capacity, ranging from 39 to 49 percent. These agencies include the Department of Commerce, Department of Homeland Security, Department of Justice, Department of State, Department of the Treasury, and the Nuclear Regulatory Commission.

However, the majority of agencies fell below this mark. Those in the smallest office usage category, averaging around 9 percent, included the Department of Agriculture, Department of Housing and Urban Development, Office of Personnel Management, Small Business Administration, Social Security Administration, and the GSA.

Regardless of usage, taxpayers are still footing the bill for the extra space in these agencies. This fact was emphasized by Rep. Scott Perry (R-Pa.), the committee’s chairman, who stated, “The taxpayer is quite literally paying to keep the lights on even when no one is home. And the lights are just the beginning of it, right? There’s security, there’s utilities, there’s upkeep when nobody’s there. And if this trend is any indication of space usage and lease space, we are wasting literally billions of dollars each year.”

Marroni concluded by acknowledging the need for action to address this issue and optimize the utilization of federal agency headquarters space.