Federal Lease Terminations: What GSA and DOGE’s Efforts Mean for Landlords

02.24.2025

The General Services Administration (“GSA”) and the Department of Government Efficiency (“DOGE”) are initiating efforts to reduce the federal government’s extensive leased portfolio. This is particularly relevant for agencies with “non-firm term leases”. Recent reports indicate that DOGE, a project led by Elon Musk, has begun terminating leases, with 22 leases canceled as of early February.

As a result, landlords with GSA leases should be aware of their rights and responsibilities regarding these lease terminations. It is important to note that, unlike government contracts, federal leases do not automatically grant the government the right to terminate for convenience. Landlords are advised to thoroughly review their lease agreements to understand the terms surrounding termination, potential waivers, and claims. Consulting with legal counsel is recommended.

Leases generally cannot be terminated during the initial term unless specified in the lease agreement itself. If the government abandons a property and halts rent payments without an agreed buyout, landlords will need to file a claim under the Contract Disputes Act to safeguard their rights.

In addition, it is important for landlords to ensure compliance with all lease requirements to mitigate risks of termination for default. Given the governmental focus on eliminating waste and unoccupied buildings, landlords should proactively monitor their lease obligations and be prepared to address any notices of cure received from government tenants.

As this situation develops, landlords are encouraged to remain vigilant and consult with legal advisors for guidance on protecting their interests in this evolving landscape.

For further details or assistance, please do not hesitate to contact our office.