State Department contemplates expansion into E Street buildings

The State Department is considering an expansion into a handful buildings at 2300 E St., filling up space left vacant by the Navy Bureau several years ago.

The General Services Administration may convert the former Navy Bureau of Medicine and Surgery – just two blocks off campus – into office space, the Washington Business Journal reported. The federally owned 11.8-acre stretch is situated across from the State Department headquarters on C Street.

The master plan could cost between $1.5 million and $2 million, and would shift State Department employees already in Virginia to Foggy Bottom. A leasing broker said the plan conforms with the federal government’s drive for greater real estate efficiency. But a government leasing expert said revamping the eight buildings under consideration could take a large amount of time and financial investment.

The State Department has been one of the largest consumers of real estate in D.C., the Washington Business Journal reported, and has mostly exhausted it options for expansion in Foggy Bottom.

The Navy Bureau’s former campus once housed the original headquarters for the Central Intelligence Agency and the first National Observatory. The U.S. Institute of Peace has also secured two buildings on the property.

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