Horizon cutting-room links: Friday, 1 August 2025

"GSA taps JLL to market massive Regional Office Building for all-cash sale," Washington Business Journal

GSA has put its nearly one million-square-foot Regional Office Building in DC up for sale, exclusively accepting all-cash offers without contingencies. This significant real estate transaction is notable as it marks the first major federal office building in the District to be marketed under the Trump administration's policies.

• GSA's Regional Office Building, located at 301 Seventh St. SW, is being marketed exclusively for cash offers, a strategy aimed at expediting the sale process.
• The historic building, which has been vacant since March 2025, is being positioned for either redevelopment or conversion into residential units, aligning with a broader effort to revitalize the Southwest Federal Center.
• The property has an assessed value of $98.13 million for 2025, with projections indicating a rise to $107.3 million in 2026, despite being federally owned and exempt from real property taxes.

"Kamala Harris decides against run for California governor in 2026," Roll Call

Former Vice President Kamala Harris has officially announced that she will not run for governor of California in 2026, ending months of speculation about her political future. This decision opens up the gubernatorial race in California.

• Harris was previously seen as a front-runner in early polls, but her exit from the race has reshaped the dynamics, prompting praise from rivals about her contributions to California and the nation.
• The decision leaves a competitive race for the governor's office, with notable Democratic candidates like Katie Porter and Xavier Becerra already in contention, as current Governor Gavin Newsom cannot seek a third term.

"Pete Hegseth for Governor? Someone Wants Him Out of the Pentagon," New York Magazine

SecDef Pete Hegseth is subject of whispers with an off-ramp from the Pentagon to a political run in Tennessee. Anonymous reports indicate that his allies are concerned about his leadership and have initiated discussions about a potential gubernatorial campaign.

• Hegseth is reportedly contemplating a run for governor in Tennessee, despite not meeting residency requirements, which has led to serious discussions among his allies about his eligibility and campaign strategy.
• The Pentagon is facing a significant leadership change, as Hegseth's tenure is marked by controversies, including a purported inquiry into his sharing of classified information, which he dismisses as a "political witch hunt."
• Despite the growing concerns regarding Hegseth's leadership style and erratic behavior, President Trump continues to support him, even as new scandals and discontent within the DOD emerge, complicating Hegseth’s political aspirations and position.

"Navy’s drone refueler delayed again," Defense One

The Army's extensive Project Flytrap exercise highlights the urgent need for enhanced data training among senior officers operating in drone-heavy environments. This five-month initiative, involving international collaboration, has revealed significant insights into the integration and management of drone technology in modern warfare.

• Need for data training: Findings indicate that senior leaders (lieutenant colonels and above) require training to effectively manage and interpret the vast amounts of data generated in drone operations, suggesting a gap in current military training protocols.
• Diverse drone operations: The exercise involved approximately 300 drones of various types, showcasing real-world threats and emphasizing the importance of a layered defense strategy to counteract diverse drone capabilities.
• Natural aptitude for drone operation: The exercise revealed that proficiency in flying drones varies among soldiers, with some possessing an innate skill that enhances training effectiveness, indicating the potential for tailored training programs based on individual aptitudes.

"Las Vegas Sees Midmarket Tourism Soften, Weighing on MGM Resorts," Skift

Las Vegas is witnessing a significant decline in midmarket tourism, adversely affecting MGM Resorts. The company's revenue from Las Vegas Strip properties fell by 4 percent year-over-year, indicating a notable shift in visitor behavior—particularly among budget-conscious travelers.

• Revenue decline: MGM Resorts reported a 4 percent drop in net revenues on the Las Vegas Strip, totaling $2.1 billion, indicating broader visitor softness in 2024.
• Budget properties hit hard: MGM's budget resorts, Luxor and Excalibur, experienced significant midweek weaknesses, compounded by disruptions from remodeling at MGM Grand.
• Luxury segment resilience: In contrast to the midmarket decline, MGM’s luxury properties, like the Bellagio, saw a 4 percent increase in average daily rates, showcasing a divergence in travel trends.