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

Most Federal Agencies Underutilize Office Space, GAO Report Finds

A recent report from the U.S. Government Accountability Office (GAO) reveals that the majority of federal agencies are using less than 25 percent of their headquarters space. This assessment, conducted earlier this year, aimed to determine the actual office space needs of these agencies.

During a testimony before the House Transportation and Infrastructure Committee, GAO Acting Director of Physical Infrastructure David Marroni highlighted the findings. “All 24 of those headquarters buildings had extra space and that most agencies were using less than 25 percent of their headquarters capacity on average,” he stated.

While the rise of remote and hybrid work due to the COVID-19 pandemic has contributed to the decline in office space usage, Marroni emphasized that this issue existed prior to the outbreak. Outdated buildings were identified as a major obstacle to modernizing the workforce and consolidating office spaces.

The preliminary report also identified various 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 use.

The assessment is still ongoing, but the current underutilization of office space comes at a significant cost to taxpayers. The federal government owns approximately 511 million square feet of office space, which incurs billions of dollars in annual maintenance expenses.

Usage Disparities Among Agencies

Among the agencies reviewed by the GAO, some utilized a higher percentage of their headquarters’ capacity, ranging from 39 to 49 percent. These included 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. The Department of Agriculture, Department of Housing and Urban Development, Office of Personnel Management, Small Business Administration, Social Security Administration, and the General Services Administration (GSA) were among those with the lowest office usage, averaging around 9 percent.

Regardless of usage, taxpayers continue to bear the cost of maintaining these underutilized spaces. Rep. Scott Perry (R-Pa.), the committee’s chairman, emphasized this point, stating, “The taxpayer is quite literally paying to keep the lights on even when no one is home. And if this trend is any indication of space usage and lease space, we are wasting literally billions of dollars each year.”

Marroni also highlighted the “opportunity costs” associated with this issue, emphasizing that every dollar spent on unused office space could have been allocated to other important areas.