Breaking News/03.04.2025

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Another blow to downtown Boston: Federal office buildings could hit the market as the Trump administration slashes the government workforce

Boston’s already struggling and half-vacant office market is about to take another big hit.

The Trump administration wants to potentially offload more than 440 federal buildings around the country, including a pair of major government hubs in Boston.

The Gropius-designed JFK Federal Building, whose two 26-story towers are next door to Boston City Hall, is on the list of properties being eyed for sale, as well as the 11-story Thomas P. O'Neill, Jr. Federal Building in the West End.

The move comes as Elon Musk’s Department of Government Efficiency looks to jettison tens of thousands and even hundreds of thousands of federal workers.

JFK Federal Building in Boston

The sale of the JFK Federal Building alone could add several hundred thousand square feet of space to a Boston office market that already has more than 16 million square feet available for lease, according to a report by Cresa, a commercial real estate consulting firm.

The local offices of Sens. Elizabeth Warren and Edward Markey are both currently located in the JFK Federal Building, as well as space leased by the IRS, the DEA and federal immigration services.

Overall, nine federal buildings across Massachusetts are listed for potential sale by the General Services Administration, including the new Volpe Transportation Systems Center in Cambridge’s Kendall Square and the IRS complex in Andover.