GAO Report Highlights DOD Real Property Challenges & The Path Forward

DOD Faces Urgent Challenges in Managing Underutilized and Excess Facilities

A recent GAO report (GAO-25-106132) highlights persistent inefficiencies in the Department of Defense’s (DOD) real estate portfolio, which consists of over 700,000 facilities valued at $2.2 trillion. Despite periodic reviews aimed at optimizing space utilization, the military services continue to report inconsistent and inaccurate facility data, limiting DOD’s ability to make informed real estate decisions.

Key findings from the GAO report include:

Inconsistent Facility Utilization Data: The military services employ varying methods to track facility usage, leading to data inaccuracies that impede informed decision-making.

Delays in Demolition & Space Optimization: Funding constraints and shifting mission priorities have resulted in challenges in removing excess infrastructure and optimizing space.

Aging & Underutilized Facilities Drive Costs Up: Many buildings remain operational despite poor conditions, high maintenance costs, or outdated functionality – ultimately escalating operational expenses.

The GAO has recommended five actions to improve oversight, including holding military services accountable for reporting accurate data and issuing better risk-management guidance. Without immediate action, DOD risks wasting billions on underutilized assets while lacking space for emerging mission needs.

A Smarter, Data-Driven Approach to Federal Real Estate Management

The challenge is clear: The Federal sector must rethink its approach to facility management.

The solution? Data-driven, scalable modernization strategies that optimize space, energy, and costs—without compromising mission readiness.

With deep expertise in public sector real estate strategy, smart buildings, and operational efficiency, The Building People helps federal agencies and military installations eliminate inefficiencies, optimize assets, and future-proof their facilities through next-generation solutions that directly address the challenges outlined in the GAO report.

Bringing Federal Facilities Into the Future

AI-Powered Space Utilization & Smart Occupancy

Real-time tracking of facility usage ensures that every square foot is accounted for, optimized, and mission-ready. Our data-driven approach eliminates inefficiencies and provides military services with accurate, actionable insights.

Strategic Real Estate & Facility Planning

Integrated smart building technologies and IWMS strategies enable proactive asset management. Whether repurposing underused properties or upgrading essential facilities, we ensure maximum efficiency and minimal waste.

Resilient, Cost-Effective Energy & Infrastructure Modernization

Our approach to energy efficiency and modernization ensures that aging infrastructure is optimized for performance, sustainability, and operational readiness while reducing long-term costs.

Now Is the Time for Action

Federal facilities are at a turning point—either continue to struggle with outdated systems or embrace the power of modernization. The GAO report highlights the challenges, but the solution is clear: proactive, intelligent, and results-driven real estate management.

Let’s talk to see how we can help you cut costs, improve operations, and maximize efficiency — so you can confidently focus on your mission.