June 5, 2025
Subscribe and listen to the Fed Gov Today Podcast anytime on Apple Podcasts, Spotify, or at FedGovToday.com.
Dan Mathews, former Commissioner of the Public Buildings Service at the General Services Administration, joins Francis to
share a behind-the-scenes look at how the federal government begins the process of shrinking its vast real estate footprint. With a friendly but no-nonsense approach, Mathews explains the two core metrics that drive decisions about federal buildings: occupancy and capital liabilities.
The conversation starts with the concept of occupancy—how full are the buildings the government already owns or leases? According to Mathews, this is the “starting point” for evaluating real estate decisions. If a building is sitting half-empty, it naturally becomes a candidate for consolidation or disposal. Mathews notes that this has become an even more important conversation in light of increased remote and hybrid work across federal agencies. Many offices are no longer seeing the same volume of daily workers they once did, and the data reflects it.
He emphasizes that these decisions aren’t just made based on a feeling or anecdotal observation. Real, measurable data on building utilization helps leaders understand how much space is truly needed. Occupancy rates provide that clarity and help guide next steps for agencies and the General Services Administration (GSA), which manages the federal real estate portfolio.
Once occupancy is assessed, the next big piece is capital liabilities—the cost of keeping a building in usable shape. Mathews explains that some buildings, even if partially used, require major investments to remain operational or bring up to modern standards. If the cost to maintain or repair outweighs the value of the building—or if the building no longer supports the mission effectively—it becomes a strong candidate for release.
Mathews shares that this kind of analysis helps agencies make strategic choices rather than reactive ones. Instead of waiting for systems to fail or budgets to tighten, they can proactively identify which properties are worth investing in and which are not. It’s a more deliberate approach that aligns with long-term efficiency goals.
The former commissioner also touches on the broader benefits of footprint reduction. It’s not just about cost savings, he says—though those can be significant. It’s also about modernizing the workplace to better fit how federal employees work today. Smaller, more efficient spaces that support hybrid work can lead to improved morale, better productivity, and smarter spending of taxpayer dollars.
Mathews highlights the importance of balancing data with practical leadership. These are not easy decisions, he acknowledges, but when done right, they reflect good stewardship and responsible government.
For agencies across the federal landscape, the message is clear: the status quo is no longer sustainable. By starting with occupancy and capital liabilities, the government can make informed, mission-driven decisions about its physical footprint.
Mathews offers a thoughtful, experienced voice on a complex challenge—showing that the path to smarter government starts with asking the right questions about space, cost, and value.
You can read the Public Building Reform's Second Round submission here
Please fill out the requested information below