Gov. Nikki Haley and Marcia Adams announce Department Of Administration’s Real Property Plan

Governor Nikki Haley and Marcia Adams, Director of the South Carolina Department of Administration (DOA), announced the results of DOA’s comprehensive inventory of state-owned real estate assets and the agency’s Real Property Plan for managing those assets in a way that could potentially save South Carolina taxpayers millions of dollars.

DOA’s Real Property Plan comes as a result of Governor Haley issuing Executive Order 2013-09, which directed state agencies to take a hard look at the property that the taxpayers own and how the state uses it – all in an effort to determine how to save money and work smarter.

Highlights of the Real Property Plan:

• The study identified eight properties to potentially sell that are functionally obsolete, underutilize or in need of significant capital investment. The estimated sale of three of those buildings (Rutledge Building, 2221 Devine St. and 1800 Gervais St. in Columbia) will generate $5.6 million in sales proceeds. The estimated sale of all eight will produce $30.42 million in capital expense cost avoidance.
• The study found that the state’s primary office portfolio can be reduced 18-25 percent by adopting and enforcing space standards.
• The study identified four projects for renovation and or consolidation that, if completed, are estimated to provide a net present value savings of $32.4 million.
• The average operating expense of buildings managed centrally through the Department of Administration is $7.66 per square foot. The average operating expense of buildings managed by individual agencies is $13.16 per square foot. Centralization allows for a competitive shared services model and centralized vendor management to leverage the state’s buying power. This creates the potential to save $35.3 million annually in operating expenses across the state’s portfolio.

A link to DOA’s Real Property Plan can be found here: http://admin.sc.gov/about/initiatives  ~