Some specific steps for  identifying vacant and underutilized properties include observations that  these officials make during on-site property visits, communications the  officials have with tenant agencies about lease renewals, and examinations  of agency program requirements that will affect agencies’ real property  needs. GSA, VA, and USPS Have Begun Nationwide Initiatives to Realign Their Real Property Portfolios

All three agencies have recognized the importance of realigning their real  property portfolios by identifying and disposing of unneeded real property. GSA has recognized  that it has many buildings in its portfolio, including vacant and  underutilized properties that are not financially self-sustaining—not  generating sufficient income to cover expenses—or for which there is not a  substantial, long-term federal purpose or predominant federal need. VA initiated the CARES process to, among  other things, reduce its large inventory of vacant and underutilized  buildings and the significant costs required to maintain them. USPS also discussed the need to review and modify its  infrastructure of postal facilities so that it can enhance customer service  and control costs. Numbers, Types, and Locations of GSA, VA, and USPS Vacant and Underutilized Real Properties

As of October 1, 2002, GSA, VA, and USPS reported having a total of 927  vacant and underutilized real properties—including a wide range of  facilities and land—located throughout the 50 states and in the District of  Columbia and Puerto Rico. We did not change the  total number of GSA’s properties as GSA suggested because the 236  properties met our criteria of being vacant or underutilized as of October 1,  2002. The 807 facilities  represented a total of about 32.1 million square feet of space. Although VA  reported having the highest number of facilities, GSA’s facilities had the  highest amount of square footage. Only 9 properties fell into the category of  more than 50 acres, with VA having most of these properties. These 927 vacant and  underutilized properties were located in 294 cities in the United States and  Puerto Rico. According to USPS officials,  annual holding costs for this property exceed $2 million. For example, USPS is  specifically precluded from closing small post offices solely for economic  reasons. However, we reflected GSA’s concern in the report and modified  appendix II—the list of all GSA vacant and underutilized properties as of  October 1, 2002—to specifically identify those properties that GSA  identified as committed to being used and as support facilities necessary to  the functioning of occupiable space. They generally agreed with the information  in the report and provided technical comments that were incorporated in  the report where appropriate. Objectives, Scope, and Methodology

To meet the first objective, which was to provide information on how the  General Services Administration (GSA), Department of Veterans Affairs  (VA), and U.S. To meet the second objective, which was to provide information on the  numbers, types, and locations of vacant and underutilized real properties at  the three agencies, we obtained data from agency headquarters officials at  GSA, VA’s Veterans Health Administration, and USPS on their owned vacant  and underutilized real properties—facilities and land—as of October 1,  2002.
Why GAO Did This Study

The federal government has many vacant and underutilized properties that are no longer needed. Retaining unneeded real properties presents federal agencies with significant potential risks for (1) lost dollars because such properties are costly to maintain; and (2) lost opportunities because the properties could be put to more cost-beneficial uses, exchanged for other needed property, or sold to generate revenue for the government. The General Services Administration (GSA), the Department of Veterans Affairs (VA), and the U.S. Postal Service (USPS) hold a significant number of real property assets. GAO was asked to provide information on how these agencies identify vacant and underutilized real properties and the numbers, types, and locations of these properties.

What GAO Found

GSA, VA, and USPS primarily rely on field office officials to identify vacant and underutilized properties. These officials make on-site property visits, communicate with tenant agencies about lease renewals, and examine agency program requirements that will affect agencies' real property needs. These three agencies also have ongoing nationwide initiatives to realign their real property portfolios. GSA officials are reviewing all of its properties to identify and remove all assets from its real property inventory that are not financially self-sustaining or for which there is not a substantial, long-term federal purpose. VA officials are in the process of identifying unneeded real property assets to reduce VA's large inventory of vacant and underutilized buildings. USPS officials are reviewing and modifying its postal real property infrastructure so that USPS can enhance customer service and control costs through the closing and consolidation of unneeded facilities, such as some post offices. As of October 1, 2002, these agencies reported a total of 927 vacant and underutilized real properties--including facilities and land--located throughout the United States and Puerto Rico in 294 cities. VA reported the most properties--577; GSA reported 236 properties, and USPS reported 114 properties. Most of these properties--807 of 927--were facilities that represented about 32.1 million square feet and ranged from office buildings to hospitals to post offices. Although VA reported the highest number of facilities, GSA facilities made up more than half of this square footage. The remaining 120 properties were vacant lands reported only by VA and USPS, most of which were 10 acres or less. GSA said that 236 properties is an overstatement because 43 properties are committed to future use, and 37 small properties support occupiable space. GAO did not change GSA's total number of properties because they were vacant or underutilized as of October 1, 2002. However, GAO reflected GSA's concern in the text and in the list of GSA's properties. VA and USPS generally agreed with the information in this report.