PEER Report #222

REVIEW OF STATE AGENCY OFFICE SPACE LEASING, August 22, 1989, 86 pages

PEER reviewed state office space leasing procedures of the Office of General Services, Division of Real Property Management.

The division has failed to fully develop and uniformly enforce a lease control system. Property Management has permitted leases to take effect without prior approval; does not inspect potential lease sites prior to approval; makes no attempt to enforce leasing policies and procedures by seeking to prevent payments for unauthorized leases; has no valid database for determining prevailing market rates for properties; and is not assuring that offices in flood zones have flood insurance.

The Division of Property Management contended that PEER’s recommendations would be costly to implement and were based merely on differences of opinion as to management style. However, PEER’s conclusion is that even though sufficient administrative resources and clear authority exist, the division is not an independent advocate for a locator of adequate and economical office space. The division’s passive management style has resulted in a subjective process dominated by individual agency preferences, property owner assertions, and the availability of public funds.

For a paper copy of this report, contact PEER by telephone at 601-359-1226 or by e-mail at reports@peer.ms.gov.