The Department of Governmental Efficiency (DOGE) has implemented substantial budget cuts affecting federal operations across various regions, including Buffalo, New York. These cuts have led to the closure of several government offices within the city, notably two significant offices housed in Buffalo’s most esteemed office building, 130 S. Elmwood Avenue. The reductions reflect broader federal cost-saving measures impacting government operations nationwide.

Detailed Look at 130 S. Elmwood Avenue, Buffalo, New York

130 S. Elmwood Avenue stands as a prominent eight-story building, encompassing 274,000 square feet, and was constructed back in 2004. It is owned by Easterly Government Properties, a real estate investment trust based in Washington, D.C., specializing in properties leased to the federal government. Historically, the building has been fully leased and, at the end of 2024. Was generating substantial lease income of $6.9 million annually. The recent decision by DOGE not to renew the leases for the National Labor Relations Board and the Defense Contract Management Agency marks a significant change, as these agencies were key tenants occupying about 20% of the building’s total space and contributing around 23% of its annual lease income.

Financial Impact and Building Valuation

The property at 130 S. Elmwood is not only a significant asset due to its size and tenant profile but also in terms of its financial value. Assessed at $50 million in 2024, it is by far the most valuable office building in Buffalo, with its closest competitor, Seneca One, valued at $36.5 million. Easterly Government Properties acquired the building in 2018 for $89 million, which at the time was one of the largest real estate transactions in Erie County’s history. This acquisition has established Easterly as one of the top property taxpayers in Buffalo.

Prospects for the Future Amid Changes in Buffalo

Despite the loss of two major tenants, Easterly Government Properties remains optimistic about the prospects of 130 S. Elmwood. The company anticipates that the Trump Administration’s push for federal employees to return to physical offices will sustain, if not increase, the demand for office space in Western New York. They also highlighted during a recent call with shareholders that 95% of their lease agreements with the federal government are legally binding and cannot be canceled, suggesting a stable future for their national portfolio of government-leased properties.

Local Reactions and Additional Lease Terminations

The termination of leases, particularly that of the National Labor Relations Board, has stirred controversy among local stakeholders, including state and local Democrats. Criticism has centered on the lack of notice and guidance provided to employees affected by these closures. In addition to the leases at 130 S. Elmwood, DOGE’s website lists other terminated leases in Buffalo, such as the United States Trustees and the Federal Mediation and Conciliation Service. These closures are part of a larger pattern of federal retreat from leased properties, which has raised concerns about the impact on local government services and employment.