A House hearing has been told how the “reducing the federal footprint” initiative to reduce real estate costs through consolidation and closing of space is translating into smaller office spaces.
For example, GSA Public Buildings Service commissioner Norman Dong said, consolidation of the U.S. Probation Office space in Chicago will reduce annual rent costs by $1.2 million, while reducing space per employee from 418 to 172 usable square feet—a 59 percent reduction.
Similarly, a planned consolidation of EEOC space will save $322,000 in annual rent, while reducing usable space per person by 42 percent, from 208 to 121 square feet.
Dozens of other consolidations are underway that are projected to save more than one million square feet and more than $76 million a year, and “as current leases expire over the next few years, we see much more opportunity for agencies to collocate, consolidate, shrink their footprint, and reduce their rent spending,” he said.
In 2015, the PBS sold or transferred 173 underused or unneeded buildings, generating $56 million in sales proceeds, but there is much more to be done in that area, he added.
