State decides to outsource management of office properties

State decides to outsource management of office properties

Posted:
NASHVILLE, Tenn. -

Tennessee has decided to outsource management of its office properties.

The state said the move will save taxpayers tens of millions of dollars, but it means cutting more than one hundred jobs in the process.

 "If we think that someone can do it better than we can do it, at a better price, than we are typically going to go that route," said Kelly Smith, the Assistant Commissioner of Communications.

Future employment for about 125 state employees in our area is uncertain.

They've been asked to reapply for their jobs.

"The state accessed all of its programs and real estate is one of the areas we found we could be more efficient and really save a lot of taxpayer dollars," Smith explained.

The state hired an Illinois firm called Jones Lang Lasalle.

The company sent Nashville's News 2 a statement that read:

"The State of Tennessee is expected to save an estimated $50 million over the next five years through its partnership with Jones Lang LaSalle to manage 10.5 million square feet of office facilities."

"In addition to the $50 million dollars, we are also recognizing a one time cost avoidance of $25 million dollars and another $3 million for not having to purchase the technology," Smith added.

Jones Lang Lasalle will sell three state properties, including the Tennessee Regulatory Authority building on James Robertson Parkway.

The employees affected have been informed.

Even if all 125 workers are re-hired by the new company, they will no longer be state employees.

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