DOGE cancelling lease for Philadelphia SEC office as part of nationwide reductions

The termination of the lease for the U.S. Securities and Exchange Commission office in Philadelphia is part of the Trump administration’s ongoing efforts to reduce the size of the federal government, according to reports and internal memos. The decision to close the regional office building in Center City, along with the regional office in Los Angeles, was first reported by Reuters.

The plan to end the lease for the SEC office in Philadelphia is part of a broader downsizing campaign led by Trump adviser Elon Musk and the Department of Government Efficiency (DOGE). Last month, DOGE launched a cost-cutting initiative across the federal government, resulting in the termination of thousands of federal contracts, grants, and leases. This effort included the cancellation of two dozen federal building leases in Pennsylvania and 14 in New Jersey, with six of them in Philadelphia, including the SEC’s office at One Penn Center along JFK Boulevard.

The General Services Administration’s lease database shows that the SEC has been renting a 44,765-square-foot office space at 1617 John F. Kennedy Blvd. for over $1 million annually since 2014. The commission is expected to vacate the office building by August and work with the General Services Administration to find new office space or transition to remote work if a new office location is not secured by then.

The decision to cancel federal office contracts, including the SEC’s lease in Philadelphia, has raised concerns about the impact on the commercial real estate market in Center City. With tenants moving towards remote work and downsizing their office spaces, the loss of federal office leases could further strain the struggling real estate market in the area.

U.S. Representatives Dwight Evans and Brendan Boyle, both Democrats representing Philadelphia districts, expressed their concerns about the lease termination. Evans criticized the cuts as “arbitrary” and questioned Musk’s decision-making process, highlighting the lack of transparency in the downsizing efforts. Boyle, whose district borders the SEC office, raised alarms about the potential loss of local jobs and the negative impact on Philadelphia’s economy as a result of the lease termination.

The termination of federal office leases, including the SEC office in Philadelphia, is part of a broader effort to streamline government operations and cut costs. However, the impact on local employees and the commercial real estate market in Center City remains a point of concern for elected officials and stakeholders in the region.