RD46 - Annual Report on the Use of Real Assets


Executive Summary:
In 2002, the Governor's Commission on Efficiency and Effectiveness recommended that the Commonwealth undertake better management of real property. Subsequently, the Department of General Services, through a competitive solicitation, engaged the consulting services of industry experts to provide advice on prevailing real estate trends and best practices. The Governor then issued Executive Order 75 (2004), which called for the establishment of a comprehensive portfolio management program, including both leased and owned facilities. The four primary areas of this initiative include: developing a portfolio management strategy, restructuring the organization, redesigning the business processes, and creation of an MIS strategy.

The following values form the foundation of this new portfolio management program:

• Customer service
• Collaboration, facilitation and joint problem-solving
• Performance standards and measures
• Cost savings and efficiencies

A comprehensive portfolio management program for real estate will generate many improvements, including economies of scale and market leverage in leasing and contracts, fewer redundant support areas, better space utilization, more productive use of staff, more consistent and higher quality facilities, and better environments for teamwork, communication and collaboration. Additional benefits include better citizen access, more real estate expertise incorporated into operations, greater flexibility to respond to business changes, enhanced collaboration among agency programs, and a more efficient and less confusing process for private landlords and owners.

To implement this initiative, an organizational restructuring was undertaken by the Department of General Services in January of 2005, creating the Division of Real Estate Services (DRES). DRES completed the first phase of its organization ramp-up in 2005 and early 2006. DRES' staff is also supported by third party service providers for real estate transactional/brokerage services and space planning/architectural services.