Why: Oregon state government uses millions of square feet of real estate delivering services to Oregonians in all corners of the state. This includes owned properties and leased space for offices, warehouses, customer service locations and other uses. Over time, policies, practices and utilization of real estate has lagged behind “best practices” utilized by other government entities and the private sector. A new approach is needed to ensure efficient utilization of limited resources, in both leasing and owned real estate across the enterprise of state government.
The Enterprise Leadership Team (ELT) sponsored a project
to revamp the state’s approach to real estate portfolio management to better align with best practices in acquisition, utilization, operation and disposition of real estate. The expected outcomes of the project include: increased cost savings on leased facilities, increased enterprise real estate coordination, aligned contracts with market conditions, and streamlined real estate portfolio management.
How: Enterprise Asset Management is contracting with world class real estate brokerage firms to renegotiate leases on 51 large leased facilities. The renegotiation process will help align leasing contracts with the current lower market conditions as well as get Oregon back on track with proactively negotiating state facility leases. Enterprise Asset Management has also acquired the services of a highly respected and skilled real estate consulting group (Leland Consulting Group) to assess the needs of the state and to recommend local and national best practices that can be implemented to save money on state owned and leased facilities. Based on recommendations from Leland, Enterprise Asset Management will develop a new leasing process and training for facility managers across the enterprise as well as modify rules and procedures to reflect changing market conditions.
As seen on the timeline
, next steps include the negotiation of 51 large-leased facilities (Initiative I) in the 2013-15 biennium, while implementing the following recommended best practices that came out of Initiatives II and III: enterprise-wide alternative workplace strategies; contemporary real estate practices; cultural changes to real estate and technology utilization; and, delivering state services with less real estate cost in the future.
Strategic Initiatives Project Coordinator
Office of the Chief Operating Officer
Department of Administrative Services
Learn more about the work of the Office of the Chief Operating Officer and the Statewide Initiatives team.
Project Documents (pdf)
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