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Now that the federal government might be looking to unload its massive and sprawling IRS Service Center property in Holtsville, Greater Long Island has reached out to Brookhaven Town Supervisor Dan Panico to discuss the site’s potential future.
That is, should the IRS vacate it.
Panico said that while the town “has no role in the determinations of the federal government with respect to the possible surplus listing and sale of this property, we do have the authority over local zoning.”
The IRS land, which has its own sewage treatment plant, is currently zoned A-1, which allows for one-family dwellings on one-acre lots.
The building itself is 557,000 square feet in size and its parking lots and grass buffers are built over 75 acres, according to tax records.
To put the sheer size of the property in perspective, Hersheypark in Hershey, Pa., is 121 acres.
Panico said medical technologies “seem like a possible use” for the complex.
“Companies looking to invest in an AI data center and other uses that bring employment and high-paying jobs to the area would be of interest to the Town of Brookhaven,” he said. “Assuming this goes forward. I don’t believe the federal government sells property ‘subject to,’ so potential buyers are going to have to put together firm plans, because the property would go on the tax rolls if it is a non-municipal owner.”
One thing he wouldn’t want is for a group of investors to mothball the building and land-bank the property.
“The last thing I want to see is this property purchased by a REIT (Real Estate Investment Trust) or other similar entity that lets it sit and deteriorate,” Panico said.
“That serves no one.”
Panico’s other thoughts and opinions for the property had to do with potential county services.
“Theoretically, such an expansive building could be considered for use by Suffolk County as our county executive has highlighted plans to invest in a new medical examiner’s building, as well as the possible replacement of other aged Suffolk County buildings,” he said. “However, those determinations are purely Suffolk County decisions.”
[GLI has also reached out to County Executive Ed Romaine.]
The building is located just south of Woodhaven Avenue. Its parking lots stretch from Buckley Road to Waverly Avenue.
The GSA unveiled on Tuesday an expansive list of federal properties nearing 450, including the Holtsville IRS building, that the agency deemed non-core and “designated for disposal.”
However, on Wednesday, the entire list was removed. In its place, the site now reads “coming soon.”
“We are identifying buildings and facilities that are not core to government operations, or non-core properties, for disposal,” the GSA site now reads. “Selling ensures that taxpayer dollars are no longer spent on vacant or underutilized federal spaces. Disposing of these assets helps eliminate costly maintenance and allows us to reinvest in high-quality work environments that support agency missions.”
When asked why the list was taken down, Stephanie Joseph of GSA said in a statement to USA Today and other outlets that “since publishing the initial list on March 4, 2025, we have received an overwhelming amount of interest.”
“We anticipate the list will be republished in the near future after we evaluate this initial input and determine how we can make it easier for stakeholders to understand the nuances of the assets listed. As we stated in our press release, ‘GSA will continuously review and update the list of non-core assets,’” she said.
The building that was included in the GSA list published Tuesday should not be confused with another IRS building, a smaller one that was already sold in 2022 for $28.5 million, and where the IRS now rents space. In the map below, that’s the smaller building to the north, outlined in red. The building on the GSA list is much larger, and is located to the south, also outlined in red:
Politico is reporting that listing federal buildings for possible sales comes as part of a broader effort by its Public Buildings Service to offload properties and leases the Trump administration has deemed no longer essential to government operations.
The IRS does not publicly disclose staffing levels at its offices, so it’s unclear how many jobs are at stake in Holtsville, should the federal government decide to sell. But according to News 12 Long Island, IRS employees in Holtsville said more than 100 were laid off last month.
