The U.S. Department of Housing and Urban Development plans to leave its longtime headquarters in Washington, D.C., for an office building across the Potomac River in Virginia, as the federal government looks for more ways to cut real estate costs.
HUD, the agency responsible for overseeing federal housing programs, said Wednesday it plans to move from the Robert C. Weaver Federal Building in the nation's capital to 2415 Eisenhower Ave. in Alexandria, currently home to the U.S. National Science Foundation. Exactly where NSF, a federal agency that supports science and engineering, will go is uncertain at this point.
Maintenance issues at HUD's brutalist-style, government-owned office building at 451 Seventh St. SW are behind the decision to relocate, HUD Secretary Scott Turner said in a statement.
"There are serious concerns with the current state of HUD's headquarters including health hazards, leaks, and structural and maintenance failures," Turner said. "Many of these risks will needlessly and irresponsibly continue to absorb taxpayer dollars. Relocating is about more than just changing buildings; it's about a mission-minded shift that we hope will inspire every employee."
The more than 1.12 million-square-foot complex, located just south of the National Mall, was added to the government's accelerated disposition list in April. The pending action is part of a push by President Donald Trump's administration to slim down the federal real estate portfolio and return government employees to the office five days a week.
A timeline for its potential sale or offloading is still in the works.
Staggered relocation process
Immediate next steps center on coordinating a "staggered and thoughtful relocation process," Turner said at a press conference Wednesday. The HUD move would involve 2,700 employees, Virginia Gov. Glenn Youngkin said at the press conference, adding that he is committed to keeping the NSF in Virginia.
"The decision to relocate HUD's headquarters is a move that reflects our commitment to fiscal responsibility and mission effectiveness," Michael Peters, the commissioner of the Public Buildings Service at the General Services Administration, the government's civilian real estate management agency, told CoStar News in an email.
The move will save American taxpayers more than $500 million in deferred maintenance and $56 million in annual operating and maintenance expenses, Peters said during the press conference.
HUD's new space will be significantly smaller than its current headquarters. Its future home, built in 2017, totals roughly 700,000 square feet, including ground-floor retail space.
San Antonio-based Affinius Capital owns the Alexandria property, CoStar data shows. The complex is made up of two interconnected office towers, one that's 19 stories and another that's 14 stories, Affinius said on its website. The owner did not immediately respond to an email request for comment.
A federal employee union denounced the HUD relocation and said in a statement that more than 1,800 NSF employees currently work in the Alexandria building. The National Science Foundation declined via email to comment, and the Virginia governor's office referred a request for further comment to a statement.
HUD did not immediately respond to an email request for further comment.