Original Broadcast Date: 04/05/26
The federal government is entering a new phase in how it manages its real estate footprint, and in this segment, Norman Dong, former commissioner of the Public Buildings Service at GSA, explains both the opportunity and the risk in that shift.
Dong begins by acknowledging a meaningful change in direction. For years, he says, the federal government held onto properties longer than it should have—a tendency he describes as a “hoarder mentality.” Now, the General Services Administration is moving more decisively to dispose of underutilized buildings, including a recent deal to sell a former regional office in Washington, D.C.
That increased momentum is a positive development. However, Dong cautions that speed alone should not define success. The current approach, he explains, often involves selling properties one at a time without a broader vision for how those assets fit into the surrounding neighborhood. This piecemeal strategy risks leaving significant value on the table, both financially and in terms of long-term urban development.
A central theme of the discussion is the importance of planning beyond the individual property. Dong points to past examples in Washington, such as the Navy Yard and NoMa developments, where federal and local governments worked together to align investments with a larger neighborhood strategy. In those cases, coordinated planning helped drive economic growth and revitalization. He argues that the same level of coordination is needed now—but in reverse—as the government sheds assets rather than builds new ones.
From the buyer’s perspective, Dong highlights several factors that influence the value of these properties. Many of the buildings being sold require significant capital investment for repairs and redevelopment. In addition, developers often face years of uncertainty before generating revenue, particularly when properties come with no existing tenants. Regulatory constraints, such as historic preservation requirements and environmental considerations, can further complicate redevelopment plans.
These uncertainties directly affect how much a buyer is willing to pay. Without a clear vision for the surrounding area, developers take on greater risk, which can drive down sale prices. Conversely, when there is a well-defined plan supported by both federal and local stakeholders, it sends a strong signal to the market and can increase the attractiveness—and value—of these assets.
Dong also reflects on past transactions to illustrate the challenges. He cites the example of the Georgetown West Heating Plant, which was sold more than a decade ago but took years to redevelop due to restrictions tied to historic preservation. Those constraints limited what the developer could do with the property and contributed to a lengthy and complex approval process. The result was a significant delay before meaningful progress could begin.
This example underscores a broader point: the process of disposing of federal property does not end with the sale. What happens afterward—how easily a site can be redeveloped, how quickly it can generate economic activity, and how well it integrates into the surrounding community—is just as important. Dong emphasizes that both sides of the equation must be considered.
Looking ahead, he advocates for a more unified approach. The federal government determines which properties to sell, while local governments control zoning and land use decisions. For redevelopment to succeed, these two levels of government need to work together and present a consistent vision to the market. A coordinated “go-to-market” strategy, he suggests, would help maximize both financial returns for taxpayers and broader community benefits.
Ultimately, Dong frames the current moment as an opportunity. The federal government has a chance to rethink not just how it disposes of assets, but how those decisions shape cities and neighborhoods. Done well, these transactions can unlock new housing, retail, and economic activity, transforming underused properties into vibrant community assets.
In this segment, Dong offers a clear and practical perspective: progress is happening, but realizing the full potential of these changes will require thoughtful planning, collaboration, and a focus on long-term outcomes—not just short-term deals.