Why It Matters

The Department of Defense owned or leased approximately 35 million square feet of office space in the National Capital Region as of March 2025. Yet more than half of those office spaces had not reported occupancy data as of September 2025, according to the Government Accountability Office. DOD issued new guidance in 2025 requiring the collection of additional data on space usage, including the number of people occupying each workspace, but some organizations have not reported the required data, and some of the submitted data likely included inaccuracies.

The gaps extend to the department's formal inventory system. Washington Headquarters Services, the entity responsible for space planning and management outside military installations, did not include all DOD-leased office space in the National Capital Region in its inventory. GAO identified 17 leases executed by the military departments that were missing from the inventory, representing about 20 percent of leases and comprising more than 492,000 square feet.

The Big Picture

Washington Headquarters Services does not have full visibility into available space on military installations, according to GAO. Officials said they have relied on the military departments to coordinate with installations, while military department officials told GAO they do not track or report available space.

The military departments are responsible for office space on their installations and may also execute leases independently. Washington Headquarters Services is responsible for space planning and management for office space outside installations and for reviewing leasing requests in the National Capital Region.

DOD's needs for and use of office space in the National Capital Region are changing, partly because of the return to in-person work and changing workforce needs.

What They're Saying

DOD requires its offices and organizations to collect occupancy data for their workspaces. However, some DOD organizations are not reporting occupancy data at all. Some of the occupancy data DOD organizations submitted likely included inaccuracies. GAO identified potential data-entry errors and outliers, while DOD officials said they were concerned about whether the data were free from error.

GAO reviewed DOD needs assessments, occupancy data from April to September 2025, and leasing processes. It also interviewed DOD officials and visited a non-generalizable sample of DOD-owned and leased office spaces.

What's Next

GAO made four recommendations to DOD, including developing actions to enforce occupancy reporting, establishing processes for accurate occupancy data, and improving coordination between Washington Headquarters Services and the military departments on leases and available space on military installations.

DOD concurred with one recommendation, partially concurred with two, and did not concur with one. GAO maintains that DOD should fully implement all four recommendations.

The Bottom Line

House Report 118-125 included a provision directing GAO to review how DOD manages its real property needs in the National Capital Region.

DOD has issued guidance and established requirements for collecting occupancy data, but more than half of its office spaces in the region had not reported occupancy data as of September 2025. GAO concluded that more reliable data would give DOD a more complete picture of its property portfolio and put the department in a better position to reduce leased office space while meeting its changing workforce needs.

Spot something wrong? Report an issue with this article