The Office of State Property acts as the real estate broker for the State. This Office is responsible for all real property transactions, whether purchased or leased for most state agencies, and the university system. Any purchase or lease of property by these entities must be evaluated and/or negotiated by this Office. The Office of State Property is not involved with real property contracts for community college campuses, the local school boards, the Railroad Commission, the Ports Authority, nor the Department of Transportation's highway right of way.
 
 

The types of property purchased and leased by the State varies extensively depending on the needs of different agencies. The majority of purchases made through the Office of State Property are for land. The State rarely purchases existing buildings. Approximately 85% of land purchases are for park and wildlife lands, with the remaining land purchases primarily for universities. Approximately 85-95% of all property leased is office space, with the remaining leases primarily for warehouses.

HOW CAN PROPERTY OWNERS/MANAGERS CONTRACT WITH THE STATE?

The purchase and lease of real property is generally site specific. If a state agency located in Raleigh needs more office space, naturally the market for that property will be in Raleigh, not in Charlotte. If the State wants to extend the boundaries of a state park or university, a specific piece of land is sought. This automatically limits the number of potential proposers who can meet the state's requirements.

The best way to get involved in the state's procurement of property is to contact local state agencies and make them aware of available property. State agencies and the Office of State Property maintain files with listings of available properties. This list is NOT a mailing list of any kind. If an agency decides it needs to purchase or lease a piece of property, staff usually refer to the files first to determine if the desired type of property is available.
 
 

WHAT ARE THE PURCHASING/LEASING PROCEDURES FOR REAL PROPERTY?
 
 

Real Property Purchases

In order for any state entity to purchase real property, regardless of the property's worth, the Office of State Property must evaluate that need and negotiate the purchase. Because the purchase of property is so site specific, advertisement of solicitations is not required. State agencies can make recommendations to the Office of State Property as to the property they believe to be most desirable.
 
 

Real Property Leases

The procedure for procuring leases is slightly different than purchasing property and it involves the use of agency delegated authorities. Following are the conditions affecting each type of lease:
 
 

1. Leases not exceeding $5,000/year for a term no greater than three years:
 
 

• must be approved by the Secretary of the requesting department or a subdelegate within the department (the requesting agency must first check with the Office of State Property to ascertain that no state owned space or surplus leased space is already available);
• are not required to be advertised.

2. Leases greater than $5,000 and not exceeding $25,000/year for a term no greater than three years:
 
 

• must be approved by the Secretary of the requesting department or a subdelegate within the department;
• must be approved and negotiated by the Office of State Property;
• are not required to be advertised.

3. Leases greater than $25,000 regardless of lease term or exceeding three years:
 
 

• must be approved by the Secretary of the requesting department or a subdelegate within the department;
• must be approved and negotiated by the Office of State Property;
• recommendation must be forwarded to the Council of State for final award of lease;
• are required to be advertised. [The advertisement is placed in the Legal section of an appropriate local newspaper. The advertisement will describe the property specifications, specify where floor plans should be sent, and the deadline for submittal.]