Federal Agencies Consolidate Headquarters in Major Real Estate Restructuring; USDA Relocation Underway

April 28, 2026 - 17:28

The Office of Personnel Management (OPM) and the General Services Administration (GSA) are preparing to consolidate their headquarters operations under a single roof, marking a significant step in the federal government's ongoing effort to reduce its real estate footprint. Beginning in July, GSA employees will vacate their current offices and relocate into OPM’s existing headquarters facility, creating a shared workspace for the two agencies.

This move is part of a broader, government-wide initiative to streamline operations, cut costs, and optimize the use of federally owned properties. By co-locating OPM and GSA staff, officials aim to improve interagency collaboration while significantly reducing the amount of leased and owned office space across Washington, D.C.

In addition to the OPM-GSA merger, the U.S. Department of Agriculture (USDA) is also proceeding with its own relocation plans. The USDA is moving a substantial portion of its workforce out of the nation's capital as part of a long-term strategy to decentralize operations and lower overhead expenses. The agency has been shifting staff to the Kansas City region, a process that began several years ago and continues to unfold.

Federal real estate officials have described these consolidations as essential for modernizing the government's property portfolio. The changes are expected to yield millions of dollars in annual savings by eliminating redundant leases and reducing maintenance costs on underutilized buildings. However, the transitions have also raised logistical challenges, including the need to reconfigure office layouts to accommodate a larger combined workforce and address potential commuting impacts for employees.