Shannon Ryan, Enterprise Asset Management Division administrator at the Oregon Department of Administrative Services, told the Joint Committee on Ways and Means Subcommittee on General Government on Feb. 26 that DAS has launched a project to right-size the state's office footprint, aiming to identify a 30% reduction by the end of 2025 and pursue implementation through 2027.

Ryan said the enterprise portfolio includes a mix of state-owned and private-sector leased space. She told the committee the state spends roughly $128 million annually on private-sector leases and about $39 million annually on the DAS-owned portfolio. A 2023 survey of enterprise agencies showed nearly one-third of agencies were using 25% or less of their office space and about half were using 50% or less.

DAS plans to prioritize co-location of like missions, move early adopters into state-owned space where possible and use a new space-utilization policy and a calculator to help agencies plan. Ryan said the bulk of the 30% reduction will likely occur in the private-lease portfolio as those leases expire and agencies consider migration into state-owned facilities; she also said the agency is open to partnerships and public-private approaches.

On disposal and acquisition, Ryan described DAS's appraisal and public-notice practice and a "clearinghouse" process that gives other state agencies first priority to express interest in a property, followed by tribes and affordable-housing entities, and then other governments before properties enter the open market. Barry Leslie added that appraisal and acquisition/disposition rules require appraisals and that many equity transactions are subject to statutory or rule oversight.

Ryan described an emerging focus on security standards for public buildings and a strategy to consolidate public-facing services on first floors to improve access and to make building lobbies easier to secure. She said these measures are now a line item in construction budgets.

DAS is also exploring childcare use of state-owned space. Ryan said seismic and other studies determine suitability; where appropriate DAS would provide a basic build-out (a "warm shell") and lease to an external operator. The agency said the Portland State Office Building and the Public Service Building on the Capitol Mall are among potential candidates for childcare space if funding and operator interest align.

Ryan described move coordinators DAS provides to help agencies relocate into state-owned facilities, noting the cost of moves is borne by the relocating agency, and said surplus property disposition (furniture, equipment) is handled through DAS surplus operations.

On legal review, Ryan said most commercial lease transactions and lease amendments are reviewed by the Department of Justice; DAS uses templates and submits agreements to DOJ for legal sufficiency. She cited a DOJ review threshold of $150,000 for legal sufficiency review in typical lease transactions.

Ending: DAS said the right-sizing effort is a multiyear project tied to lease expirations and agency planning; staff promised to provide additional details on specific moves and early-adopter agencies on request. No committee votes were taken during the presentation.