Two major federal buildings in San Francisco, including the one named after Nancy Pelosi, may soon be sold off as part of President Donald Trump's effort to shrink the federal government's real estate footprint. According to the San Francisco Chronicle, the administration is targeting these properties to cut costs—but critics argue this is more about political revenge than financial responsibility.

What's Happening?

The Nancy Pelosi Federal Building at 90 Seventh St. and the 50 United Nations Plaza building have been identified as "non-core" federal assets, meaning they could be sold off soon. The Chronicle reported that the properties are part of a broader plan to offload more than 500 federal buildings nationwide, spearheaded by Trump and billionaire ally Elon Musk.

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Both buildings sit in San Francisco's struggling Mid-Market and Civic Center neighborhoods, which have long dealt with high vacancies, crime, and homelessness. The Pelosi building, in particular, has drawn Republican criticism, not just for its name but for the conditions around it.

In 2023, some federal employees were ordered to work from home due to safety concerns. That prompted Sen. Joni Ernst (R-IA) to call for the building's closure, comparing it to a "Halloween haunted house." Trump also took aim at the building's modernist design, reinstating his executive order favoring classical architecture over what he called "ugly" government buildings.

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Will It Actually Save Money?

Critics argue that selling these buildings could end up costing taxpayers more in the long run. Leasing office space means ongoing rent payments, and local real estate insiders told the Chronicle that consolidating federal employees in owned buildings is usually more cost-effective than renting.

Speier said that "the lease will keep going up and you will end up paying the property taxes of the lessor, whereas you don't pay federal taxes when you are a federal government." Some experts also note that it may be difficult to find buyers, given that Mid-Market's office vacancy rate is nearing 50%.

What's Next?

The timeline for the sales remains unclear, and the Chronicle reported that the General Services Administration has refused to confirm which buildings are officially on the chopping block. However, internal GSA documents indicate that the administration's goal is to cut the government's real estate footprint by 50% and the number of buildings by 70%.