September 11, 2025
The Cyclicality of Real Estate: A critical Lesson for Government Infrastructure
The Federal real estate has long operated out of sync with the natural boom-and-bust cycles that shape the commercial real estate market.
While private sector real estate has adapted to cyclical shifts, the federal government has continued to expand its 3.2 billion square foot portfolio — even as market demand began to cool down.
The costs of this imbalance are significant
$120 – $130
Annual maintenance fee for federal real estate per square foot
9 – 35%
Average office space utilization
With 11.4 million square feet of leases set to expire, the government has an incredible opportunity to realign it’s real estate holdings to the market. By embracing hybrid work trends, divesting underused properties and consolidating space, federal infrastructure can become more resilient, cost-efficient and aligned with future workforce needs.
