NY claims $12M in savings on property leases

AP News
Posted: Dec 31, 2009 12:14 PM

Landlords beware. New York officials say they're retooling leases for state agencies in the economic downturn's soft real estate market and have squeezed out almost $12 million in savings since April.

With 587 property leases that cost more than $245 million annually, the state Office of General Services says it has saved $6.3 million through less expensive lease extensions, $3.4 million from renegotiating existing leases and $2.2 million from stopping unauthorized expenses after 364 audits of landlord energy and property tax charges.

The OGS says Thursday that state space needs are declining due to retirements and hiring freezes, and its effort is to consolidate and move agencies into state-owned space.