The financial state of the various U.S. states, including California is very dire at the moment and the states must take drastic steps to overcome its financial issues and obligations. California, the most heavily populated state of the United States, is finding ways to reduce its budget deficits.
The state’s revenue collections are much less than its overall spending. California state government plans to address these issues by issuing IOUs (registered warrants) for the second year in a row. The state is also planning to raise more than $2 billion from the sale of its office properties to decrease its deficits. This amount will be utilized in paying off the $1 billion of debt of the state and will also help increasing funding for the public sector.
The $2 billion sale of the state government properties is going to become the biggest commercial real estate deal in the state government’s history. Investors from around the world are invited to bid for more than 7 million square feet of state government’s properties in Oakland, San Francisco, Los Angeles, Santa Rosa and Sacramento. The state government plans to lease back these office spaces from its new owners in order to take the advantage of the declining rents in the area.
According to the official statement, the offers on the various state government properties are due on April 14. The properties that are listed for sale (as per the agency website) include:
* Oakland office tower (700,000 square feet)
* Two buildings in the San Francisco Civic Center (900,000 square feet)
* Two buildings in Los Angeles (1.2 million square feet);
* Two office complexes in Sacramento (3.3 million square feet);
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