Home Editor's Choice Federal commercial real estate cancellations surprise R.I. landlords

Federal commercial real estate cancellations surprise R.I. landlords

By

Katie Castellani

-

03/05/2025

Eyedrops — THE U.S. Department of Government Efficiency, or DOGE, has terminated the leases for at least 748 sites used by government agencies across the U.S. The cancelled leases account for more than 9.5 million square feet of space and about $468 million in savings - including $812,000 in Rhode Island. /ASSOCIATED PRESS FILE PHOTO/MANUEL BALCE CENETA

PROVIDENCE – Mary Sadlier was surprised when she opened an email from the General Services Administration last week. The agency informed Sadlier the federal government was canceling the lease for 1,556 square feet of office space she managed. The office space, located on Risho Avenue in East Providence, was used by the Federal Motor Carrier

Already a Subscriber? Log in

To Continue Reading This Article

Become a Providence Business News subscriber and get immediate access to all of our premier content and much more.

Learn More and Become a Subscriber

Critical RI business news and analysis updated daily.
1 year of print (26 issues).
Unlimited access to all subscriber only content on our website, on any device.
Free email alerts.
Annual Book of Lists Print Edition.
All special issues produced during subscription term.

Click Here to purchase a paywall bypass link for this article

PBN Branded Content

Rhode Island small business sees significant annual energy savings

The Rhode Island Energy Small Business Program offers significant incentives to property owners for comprehensive…

Learn More

LEAVE A REPLY Cancel reply

PROVIDENCE – Mary Sadlier was surprised when she opened an email from the General Services Administration last week. The agency informed Sadlier the federal government was canceling the lease for 1,556 square feet of office space she managed. The office space, located on Risho Avenue in East Providence, was used by the Federal Motor Carrier Safety Administration and brought in $38,867 in annual rent revenue. “My initial reaction was, ‘Oh no, can they do that?' ” said Sadlier, partner at Fox Paw Properties LLC. “It was not something we planned for.” Indeed, the government could; and it canceled several other commercial leases for federal agencies throughout Rhode Island that generated more than $228,000 in combined annual rent revenue. The cancellations come at the direction of the U.S. Department of Government Efficiency, or DOGE, which has terminated the leases for at least 748 sites used by government agencies across the U.S. The cancelled leases account for more than 9.5 million square feet of space and about $468 million in savings – including $812,000 in Rhode Island – as of Wednesday, according to DOGE’s website known as the “wall of receipts.” The site tracks contracts, grants and leases DOGE has cancelled. DOGE, led by Tesla CEO Elon Musk, was created by President Donald Trump in an effort to drastically cut the size of the federal government. In Narragansett, a lease for 674 square feet of office space used by the National Oceanic and Atmospheric Administration that brought in $23,937 in annual rent revenue was terminated. But the landlord, Neil Stamps, was not aware until he was reached by Providence Business News on Tuesday. Stamps said the news surprised both him and one NOAA employee who had been doing administrative work in the space on State Street in the Port of Galilee. Now Stamps said he will have to find a new tenant. However, he’s not concerned as several businesses in the area have said they’re interested in the space. The leases for two offices in Rhode Island used by the U.S. Food and Drug Administration were also canceled. One of these was the FDA’s lease for 4,215 square feet of office space on Metro Center Boulevard in Warwick. The lease generated $107,126 in annual rent revenue and will be terminated March 31, five years before the current contract expires, according to GSA data. The landlord, J.T. O’Connell Realty Co., could not be reached for comment. The other was 2,400 square feet of FDA offices on Hemingway Drive in East Providence that brought in $59,191 in annual rent revenue. The space is located in an office park spanning 32,500 square feet run by Capstone Properties LLC. As of Feb. 14, a 2,400-square-foot suite in the office park was listed for rent for $12 per square foot each year. A representative for Capstone Properties did not respond to PBN’s request for comment. Katie Castellani is a PBN staff writer. You may contact her at Castellani@PBN.com.