St. Louis Federal Government Lease Cancellations
Recent months have witnessed a significant acceleration in the termination of federal government leases, a concerted effort driven by a new administrative focus on cost-reduction and enhanced efficiency within the government’s real estate portfolio. The GSA, the government’s de facto landlord, spearheads this initiative alongside the newly established DOGE. These terminations are substantial, encompassing hundreds of leases, millions of square feet of office and other operational space, and projected savings in hundreds of millions of dollars. For instance, various reports have cited nearly 700 lease terminations totaling 7.8 million square feet nationally, with plans to continue cutting back. However, St. Louis has seen far fewer cancelled leases than other cities with major Federal offices.
Lease Terminations in the St. Louis Area:
Based on reports, several federal leases in the St. Louis area were identified for termination by the Department of Government Efficiency (DOGE) as part of its cost-cutting measures:
Defense Counterintelligence and Security Agency
A 3,400 square foot office in St. Louis was listed for true termination.
Federal Mediation and Conciliation Service
A 4,300 square foot office in St. Louis. This office was located in the University Tower in Richmond Heights.
Occupational Safety and Health Administration
Located in Fairview Heights, the 3,000 square foot office was listed for termination, effective April 30th.
Federal Acquisition Service
A service center in O’Fallon, 4,600 square feet, had its lease termination sent on January 22, effective April 21.
Food and Drug Administration
In early March 2025, the FDA and DOGE announced the lease cancellation of a 52,000-square-foot office in St. Louis, but later revised their statements and confirmed the office would remain open.
Some of these offices have consolidated into another government-leased building within St. Louis, with no expansions plans insight to cover the addition of new agencies in the building.
Federal Properties Under Review in St. Louis
Beyond specific lease terminations, the GSA has also identified multiple federal properties in the St. Louis metropolitan area as “non-core” and placed them on a list for potential closure and sale. These include:
Robert A. Young Federal Building
Located Downtown, this building houses agencies such as the U.S. Citizenship and Immigration Services, the Internal Revenue Service, and the U.S. Army Corps of Engineers. Its non-core designation suggests risk of closure.
Charles F. Prevedel Federal Building
Located in Overland, this building houses the Veterans Affairs Office and the National Agricultural Service. It is under review for a potential consolidation.
The GSA’s initiative to optimize federal space in St. Louis is part of a national strategy to repurpose or sell underutilized federal buildings. But, due to the small-scale nature of these leases, the overall office vacancy rate in St. Louis is 10 basis points lower entering May than it was at the start of 1Q, prior to the April move outs and consolidation.
