LANSING — Michigan, and other states such as Illinois, Virginia, Wisconsin, Colorado, Texas and Florida are contracting with private real estate consultants to consolidate leasing contracts and sell unused state property.
In November, the state of Michigan announced it had hired the Staubach Company to "develop a strategic real estate plan for the state and provide professional real estate services, such as tenant representation and real estate portfolio analysis," according to a November Michigan Department of Management and Budget press release. The Staubach Company is headquartered in Texas but runs a branch of its business in Southfield. State officials expect the move to save approximately $12.6 million in the next two years.
A 15 percent reduction in the state workforce in recent years has left Michigan managing more office property than it needs. The total sales value of property the state intends to sell could exceed $100 million. Unlike other states, such as Illinois, Michigan decided not to outsource the day-to-day management of state-owned property.