Like many other office tenants, New York City is examining its portfolio and hunting for where it can slash space and save money.
A Citywide Space Savings Task Force has been established, and the effort is a “mayoral priority,” Politico reported, citing memos written by Department of Citywide Administrative Services Commissioner Jesse Hamilton.
Agency spokesperson Dan Kastanis told Politico the task force is compiling data from various agencies and the plan is still in the early stages.
“We at DCAS are constantly evaluating our use of space in order to maximize effectiveness and cost-savings,” Kastanis said.
The municipal workforce totals more than 300,000 employees, but the space consolidation could signal layoffs. Earlier this year, a report by New York State Comptroller Thomas DiNapoli found that a reduction in staffing is expected to save $44M in fiscal year 2024 and $293M in fiscal year 2025.
The city is the largest property owner in the five boroughs, owning or leasing more than 17,000 properties, according to a Bisnow analysis of city data. Those properties span vacant lots to homeless shelters to office buildings.
At least 550 of its properties are categorized as office.
In July 2023, the city was one of the most active office tenants, leasing 245K SF that month alone, according to The Real Deal.
The effort isn't the only portfolio review the city is undergoing. On Wednesday, Mayor Eric Adams announced an executive order requiring city agencies to review their city-owned and -controlled land for potential housing development sites.
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