Recent legislation in the State of California authorized the Department of General Services (DGS) to sell and then lease back 11 state-owned office properties. While the sale-leaseback would transfer the state's costs and risk of owning the buildings to the private owner, the state would make ongoing lease payments that would be greater than what the state currently spends to own and operate the properties. This report analyzes whether the benefit of the one-time revenue from selling the facilities would be large enough to compensate for the higher costs in subsequent years.
