The USPS has difficulties in disposing of excess properties, keeping them in a shuttered status that incurs costs that could be avoided and forgoing potential revenue from selling them off, an IG report has said.

USPS owns some 8,000 properties and leases some 23,000 others at an annual rent cost of above $800 million, but has been in downsizing mode in recent years, leaving 79 owned properties and 62 leased properties vacant. The former group has a value of about $48 million while the latter have annual lease expenses of above $2 million.

It further said that the USPS system for tracking and managing property did not reflect how many owned or leased properties are vacant “and did not effectively manage the vacant properties it knew about.”

The system did not document potential options such as subleasing or terminating or buying out leases, nor for disposing of owned properties, it said.

Management responded that it has already terminated 2,640 leases and disposed of 146 properties over the last six years. It also said the report overstated the issue with the record-keeping system but agreed with recommendations to more closely monitor the property inventory.

Similar problems have been reported for years with excess inventory maintained by other agencies, in particular by GSA.