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California Government Trimming 1.2M-SF in Office Space

California Government Trimming 1.2M-SF in Office Space

Tech companies are not the only big office users that are cutting back in space and costs. The California government, a major player in workplace real estate, plans to save about $35 million a year by trimming 132 leases, or 1.16 million square feet across 40 departments, according to the state’s 2023-2024 governor’s budget summary.

The summary reports that the Department of General Services will continue to reduce the state’s leased portfolio, while prioritizing the largest leasing clients to gain the greatest efficiencies. California will expand telework strategies, reconfigure office space, reduce leased space and promote flexible work schedules.

The announcement is tough news for the already beleaguered office sector, however, the state will continue to utilize office space to conduct core business functions. In addition, Governor Gavin Newsom’s budget proposal also mentions that the state remains committed to investing in the construction and renovation of the assets.


Inside The Story

CA Dept. of General Services

About Mark Nieto

Mark comes to ConnectCRE with an extensive background as a business and news reporter in San Francisco radio, as well as 35 years as a traffic reporter on several stations including KGO, KNBR, KCBS and KFRC. As a business reporter, Mark covered the tech world in Silicon Valley where he became familiar with real estate transactions in the hot Bay Area marketplace. He attended San Jose State University with a BA in Radio and TV Broadcasting and currently resides in the Lake Tahoe area where he gets to frequently enjoy all of his favorite activities: Golfing, Fishing, Hiking and Skiing.