DAS seeks funding to cut state office footprint 30% by 2027, cites $204 per sq. ft. reconfiguration cost

The Department of Administrative Services (DAS) briefed the Joint Ways and Means General Government Subcommittee on Monday on a portfolio‑repositioning plan that seeks a 30% reduction in the state’s administrative office footprint from a 2021 base by the end of calendar year 2027.

"Our goal is to identify a 30% reduction in the state's office footprint by the end of calendar year 2027," said Shannon Ryan, administrator of DAS’s Enterprise Asset Management Division, during the informational meeting. Ryan said the agency is requesting funding this legislative session to prepare state‑owned buildings so they can receive private‑sector leases and house collocated agencies.

DAS presented two core strategies: first, "reenergize" state buildings by folding in leases from the private market and restacking interior space; second, collocate agencies regionally where feasible. Ryan said the state’s administrative portfolio totals roughly 9,000,000 square feet, with about half in private leases, a little under one‑third owned by DAS, and the remainder owned by other state agencies.

Ryan told the committee that workforce changes since 2021 — about 45,000 state employees statewide with roughly half onsite, about 30% hybrid and about 17% fully remote — have left many state offices underutilized. "On any given day, our buildings are 20 to 30% occupied," she said, framing that low utilization as the financial and operational opportunity behind the project.

When asked about the upfront cost to reconfigure or "close" and consolidate buildings, Ryan said DAS’s recent planning rubric estimates roughly $204 per square foot to restock or reconfigure buildings. That figure, she said, covers basic construction and reconfiguration to create collaborative, modern workspaces.

Ryan said DAS has already achieved a 7% reduction toward the 30% target, has 8% actively targeted for the next round, and projects that a full 30% reduction (base year 2021) would generate about $28,000,000 per year in base‑rent savings; she noted actual savings could be higher when utilities and other lease charges are counted.

The presentation also addressed seismic resiliency requirements the agency is factoring into its planning. Ryan cited Executive Order 25‑11, which calls for buildings to be resilient or life‑safety‑qualified by 2060, and said DAS is developing criteria and working with agencies to evaluate seismic risk, noting some assets will be cost‑prohibitive to retrofit.

Ryan identified the Portland State Office Building as a specific project tied to a funding request that would allow DAS to "make room" for agencies and absorb private leases in state‑owned space; she characterized that as a 15– to 20‑year investment.

Committee members pressed DAS on the plan’s scope and practical impacts. Ryan said the 30% target applies to agencies subject to DAS’s authority (the executive‑branch enterprise) and excludes some elected offices and semi‑independent entities. Members asked about pairing vacancies in agency‑owned space (for example, ODOT facilities) with other agencies' needs, how the plan will affect small‑market downtowns and local businesses, and whether labor agreements limit employee relocations; Ryan said DAS will provide details on labor‑agreement relocation limits and will perform business‑case and net‑present‑value analyses before disposing of assets.

On asset disposition, Ryan said DAS will pursue cost‑benefit analyses weighing potential income from sales or leases against deferred‑maintenance liabilities and will track recycling and surplus reuse where possible.

The meeting was informational; the funding request was noted for consideration during the session but no formal vote or committee action occurred during this session. Co‑chairs reminded members of a public hearing on proposed agency reductions scheduled for Feb. 3 and adjourned the subcommittee.

What’s next

DAS said it will continue agency engagement, planning and analysis, and will return with additional materials as funding and agency conversations progress. The subcommittee’s next meeting will feature the Department of Revenue’s cost allocation report.