Federal Lease Cancellations in Florida Amid DOGE Initiatives

The recent DOGE slashathon has resulted in the cancellation of nearly 217,000 square feet of federal government leases in Florida. Notably, over a third of these terminations took place in Miami-Dade and Broward counties.

Overview of Lease Cancellations

According to an Avison Young online tracker, Florida now ranks as the seventh-highest state for lease cancellations coordinated by the General Services Administration (GSA). The GSA is collaborating with the Department of Government Efficiency (DOGE) to streamline the federal government’s commercially leased footprint.

Elon Musk, previously involved with DOGE, stepped down from his informal role, leading to tensions with President Donald Trump over the recently approved Big Beautiful Bill, which economists estimate will increase the national debt by $3.3 trillion.

National Context: A Widespread Approach

Since DOGE began its initiatives in January, the GSA has canceled close to six million square feet of commercial space leases across the nation:

• Washington D.C.: 1.5 million square feet
• California: 338,000 square feet

An Avison Young tracker highlights that 90% of the canceled leases were either now-expired or had reached dates allowing termination clauses to be exercised.

Impact on South Florida

In South Florida, approximately 77,000 square feet of GSA-leased commercial space has been terminated so far. Current projections indicate that an additional 723,000 square feet in Miami-Dade and Broward counties are eligible for cancellation this year, with Palm Beach County facing risks with nearly 120,000 square feet under lease.

• 83% of eligible GSA leases in South Florida are office spaces.
• The remainder primarily involves industrial spaces.

Major Lease Cancellations

Among the most significant lease cancellations in South Florida:

1. US Agency for Global Media (Doral): The lease for a 35,927-square-foot building located at 4201 Northwest 77th Avenue was targeted for termination. This facility, home to Radio Martí and TV Martí, faced potential cuts under DOGE and the Trump administration.

2. National Park Service (Homestead): A lease covering 21,356 square feet was canceled.

3. Food and Drug Administration (Westchester): The agreement for a 14,691-square-foot office lease was terminated.

Insights from Avison Young

Tucker White, one of the co-developers of the tracker, noted, “We were spinning around trying to find a good source for this data online. We couldn’t find one, so we just decided to make one. Any cancellations [on the GSA website] show up weekly. We’re tracking it closely.”

Grant Hayes, another co-developer, emphasized, “That’s the main way that they’ve been able to go about canceling these leases across the U.S."

Conclusion

The DOGE initiative represents a significant shift in federal lease management, particularly in Florida. With countless square feet of leases being canceled, the strategy not only aims to reduce costs but also to reallocate resources more efficiently. As we witness these developments unfold, stakeholders in the real estate and federal sectors will be keenly observing how this affects the landscape in the coming months.

For more detailed information on lease cancellations and updates, visit the official GSA website.