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Follow-up Report: State Property (December 2017)

Summary

This report documents legislative and agency actions undertaken in response to PED's 2015 report, North Carolina Should Dispose of Unneeded Real Property and Improve Portfolio Management to Reduce Costs.

Follow-up Report

 

Relevant Legislation:

  • Session Law 2016-119: An act to require the Department of Administration to actively manage the State's portfolio of real property; to require measurement of the current utilization of state-owned facilities; to ensure the accuracy of the real property inventories maintained by the Department of Administration; and to ensure that the use of state-owned space is maximized before leases are entered into or renewed, as recommended by the Program Evaluation Division of the General Assembly.

Agency Actions:

  • Thirteen properties identified for disposal by PED’s report have either been sold, are under contract, or are on the market. Combined revenue generated by the properties that have been sold or are currently under contract is approximately $6 million.
  • Two of the leases highlighted by PED as opportunities to optimize utilization have been terminated and relocated, generating annual savings of approximately $54,000
  • DOA contracted with CBRE, Inc. to evaluate the State’s current real estate procedures and management structure and to advise how the State can increase efficiencies, reduce costs, and improve service delivery through better real estate management practices. In November 2016, CBRE issued its Phase 1 deliverable, which focused on three recommendations: centralized management of all real estate functions by the State Property Office; a more robust and dynamic data management platform; and updated space standards that reflect current industry trends.
  • Agencies are now required to provide data on utilization in state buildings and leases they occupy using new space standards effective December 1, 2016.