The Fate of Federal Buildings: Real Estate Disposition and the Future of Washington, D.C.

The United States federal government is the largest property owner in the country, with more than 370 million square feet of real estate under its control. Much of this portfolio is outdated, underutilized, and located in the urban cores of American cities. Nowhere is this more evident—or more consequential—than in Washington, D.C., where the federal government controls approximately 27% of the office market. As federal agencies adopt hybrid work models, and as the operational needs of government evolve, the existing real estate footprint has become increasingly inefficient, expensive, and misaligned with civic and market realities. This thesis investigates the opportunity to rethink federal land ownership and management as a catalyst for urban regeneration, civic stewardship, and housing production. Using the James V. Forrestal Building as a focal case study, the research examines the historical, policy, and spatial dynamics that have led to the current moment of reckoning. Located on Independence Avenue SW, straddling 10th Street between the National Mall and the Wharf, Forrestal is emblematic of the postwar federal design ethos: monumental, inward-facing, and hostile to street life. Once a symbol of bureaucratic permanence, the building now stands as a physical and symbolic barrier to urban connectivity and civic vitality. The case of Forrestal is used to explore broader questions: How can the federal government dispose of surplus property more effectively? What policy tools exist—or are needed—to unlock value and enable redevelopment? And what role should cities play in shaping the outcomes of federal land disposition? The thesis employs a mixed-methods approach that includes policy analysis, stakeholder interviews, precedent case studies, and spatial analysis of Southwest D.C. The work identifies a range of obstacles to effective disposition, including Title V of the McKinney-Vento Homeless Assistance Act, opaque OMB budget scoring rules, jurisdictional fragmentation, and the absence of a coordinating authority across federal agencies. It also identifies key lessons from successful projects such as The Yards, Walter Reed, and the Volpe Center, where thoughtful structuring and strong federal-local partnerships enabled transformative redevelopment of surplus land. The thesis concludes with ten detailed recommendations for reform, including reauthorization of the Federal Assets Sale and Transfer Act (FASTA), modernization of Title V and OMB scoring, the creation of Federal Redevelopment Zones, and the prioritization of housing, civic infrastructure, and design quality in disposition strategy. It argues that the federal government must shift from a passive landlord to an active steward of public land—one that collaborates with cities, integrates public benefit, and reflects democratic values through the built environment. In this moment of shifting federal needs, declining office demand, and urban transformation, the question is not whether federal real estate reform is needed—it is whether we will seize the opportunity. The fate of buildings like Forrestal will shape not only the skyline of Washington, D.C., but also the federal government’s legacy in America’s cities for generations to come.

Name thesis:degree_name

Master

Department dc:contributor.department

Massachusetts Institute of Technology. Center for Real Estate. Program in Real Estate Development.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2025

Author dc:creator

• Mulcahy, Robby L.

Advisor dc:contributor.advisor

• Saiz, Albert

Statement dc:rights

• In Copyright - Educational Use Permitted
• Copyright retained by author(s)

Licence dc:rights.uri

• https://rightsstatements.org/page/InC-EDU/1.0/

Handle dc:identifier.uri

https://hdl.handle.net/1721.1/164557

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/164557