DOGE Puts Texas Office Space on Chopping Block

What is DOGE trying to close in Texas?

Elon Musk’s Department of Government Efficiency aims to sell federal property across the Texas Triangle, according to a list of 443 buildings the General Services Administration briefly posted to its website earlier this week.

The cuts are part of the agency’s efforts to unload “functionally obsolete” real estate under Musk and President Donald Trump’s administration.

The list named three buildings in Houston, including the U.S. Custom House at 701 San Jacinto Street, built in 1911, which occupies a full downtown block and is listed on the National Register of Historic Places.

In Dallas, Musk’s department wants to axe 1 million square feet of office space, including the 261,000-square-foot Santa Fe Federal Building, at 1114 Commerce Street, which was constructed in 1925 by a syndicate of Dallas businessmen and inspired by the Merchandise Mart in Chicago, according to the GSA. The feds bought it for $1.2 million ($4.61 per square foot) in 1941. Its tenants include the Internal Revenue Service and the U.S. Diplomatic Security Bureau.

In Fort Worth, the 669,000-square-foot Fritz G. Lanham Federal Building, at 819 Taylor Street, is on the chopping block. It was built in 1966 and houses a post office and regional offices of the Social Security Administration and the GSA itself.

The J.J. Pickle Federal building at 300 East Eighth Street is among the 1 million square feet of office buildings in Austin DOGE wants sold. The 215,000-square-foot building was built in 1964, and former President Lyndon B. Johnson had his personal office there from 1963 to 1969.

Cuts to federal real estate by DOGE could lead to increased vacancies in cities already struggling with low occupancy. Austin, Dallas and Houston, for example, have office vacancy rates of 25 percent or more.

The downsizing could also create a ripple effect, impacting local economies as federal employees potentially work from home, reducing foot traffic and demand for nearby services.

Here’s what else happened in Texas Real Estate this week:

Weinreb Ventures is advancing its Frisco megadevelopment with the construction of the Ardea at Grand Place, a 301-unit project set to begin in September and complete by December 2027. It’s part of a larger development that includes three buildings totaling 1,039 apartments, driven by the recent growth in the area following the opening of the Omni PGA Resort in 2023.

Saks Global is shutting down the downtown Dallas Neiman Marcus store, despite local efforts to keep the iconic location open.

Hines landed a rare refinancing deal for the Texas Tower office building in Houston. The $450 million CMBS loan was provided by Wells Fargo and Morgan Stanley.

The Texas Legislature is sparring over who should benefit from $6 billion in property tax cuts.

And a Dallas mansion asking $25 million is the latest to join a rush to luxury real estate’s spring buying market.

—Rachel Stone