In a bold effort to slash government spending and reduce bureaucracy, the Trump administration has placed some of Chicago’s most iconic federal buildings up for sale, marking a historic shift in how the federal government operates.
The General Services Administration (GSA), the agency responsible for managing federal real estate, released a list on Tuesday of 443 “non-core” properties slated for disposal. Among them are two major Loop high-rises—the Kluczynski Federal Building and the Metcalfe Federal Building—as well as the U.S. Post Office’s Loop Station and the Social Security Administration’s regional office.
In total, the GSA plans to sell 11 properties in Chicago as part of the administration’s sweeping effort to cut federal costs.
Major Federal Buildings on the Chopping Block
The Kluczynski Building, located at 230 S. Dearborn St., is the largest Chicago property on the sale list, boasting more than 1.1 million square feet of office space. It currently houses multiple federal agencies, including:
- Department of Labor
- Drug Enforcement Administration (DEA)
- Internal Revenue Service (IRS)
- General Services Administration (GSA)
- Offices of Illinois Senators Dick Durbin and Tammy Duckworth
The Metcalfe Federal Building, another Loop landmark, is also set to hit the market.
Trump Administration’s Push to Shrink Government
The administration has set an ambitious goal of selling off half of all federally owned buildings and canceling half of all leased office spaces used by the government. The move is part of a broader effort to reduce the size of the federal workforce and, in some cases, eliminate entire agencies deemed non-essential.
A statement from the GSA emphasized that selling these properties will cut costs, reduce waste, and create efficiencies:
“We are identifying buildings and facilities that are not core to government operations. Selling ensures that taxpayer dollars are no longer spent on vacant or underutilized federal spaces. Disposing of these assets helps eliminate costly maintenance and allows us to reinvest in high-quality work environments that support agency missions.”
The GSA’s Great Lakes office in Chicago has yet to provide additional details on how the sales will impact current tenants.
Leases Canceled, Obama Archives Affected
The downsizing effort also extends to federal leases, with plans to cancel agreements on 30 of the 112 private properties rented by the government in the Chicago area.
One notable cancellation involves a furniture warehouse in Hoffman Estates, where the National Archives had been storing and digitizing the Obama administration’s presidential papers.
The new Department of Government Efficiency (DOGE), led by Trump ally Elon Musk, touted the decision as a major win for taxpayers, claiming it would save $1.4 million annually. However, GSA records indicate that the lease was already set to expire on December 31, as Obama’s presidential library will be entirely digital.
Impact on Chicago’s Office Market
Chicago’s commercial real estate sector is already struggling with record-high vacancy rates, and the Trump administration’s aggressive cost-cutting could further shake the market.
By drastically reducing the number of federal employees and eliminating agencies, the administration aims to permanently downsize the government’s physical footprint. However, questions remain about where federal offices and employees currently housed in these buildings will be relocated—or whether their jobs will even exist after the downsizing.
What’s Next?
As the administration presses forward with its government-reduction strategy, more federal properties across the country are expected to hit the market in the coming months.
With major government agencies on the chopping block, and a renewed push for privatization, the future of Chicago’s federal buildings—and the thousands of employees who work in them—remains uncertain.
One thing is clear: the era of big government is over, at least in Trump’s Washington.
