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Chapter 4 Our Operations


The Postal Service oversees 34,318 properties nationwide, totaling more than 323.8 million square feet. Projects are initiated at the request of the areas and districts. Approval for facility projects over $25 million rests with the Board of Governors. Design and construction of major processing plants are managed at Headquarters. Approval for projects under $25 million is established by the Postal Service’s Capital Investment Committee. Most of the Postal Service Facilities program work — planning, leasing, purchasing, designing, and construction — is performed by its field offices.

Real Estate Inventory
Total owned facilities 8,487
Total owned interior square feet 217,770,022
Total owned land in square feet 938,707,551
Total leased facilities 25,450
Total leased interior square feet 103,081,147
Total GSA/other government facilities 381
Total GSA/other government interior square feet 2,969,704

Realty Asset Management

Realty Asset Management manages the disposition of real property that has been declared excess to operational requirements. It handles disposals, leases, subleases, development and redevelopment of postal property. Realty Asset managers generate cash by selling surplus property and leasing, or subleasing, excess space. The Postal Service sold the landmark James A. Farley Building in midtown Manhattan to the State of New York for $190 million and additional proceeds of up to $55 million, contingent upon the achievement of certain development and leasing criteria by the developer of the property. This is the single largest property ever sold by the Postal Service. Most current postal operations will be relocated to the Morgan processing facility, with space leased back to continue to provide retail, delivery, and administrative operations at Farley. Real estate initiatives generated more than $263 million through developmental projects, excess property sales and out-leasing.

Realty Asset Management
Assets Gross Proceeds
Revenue leasing $61.4
Sales of excess property $16.0
Developmental projects $185.7
Total $263.1

Facilities Projects

Facilities completed a new standardized space planning and approval process for customer service projects costing less than $5 million. The process is more efficient and, as a result, new facilities are completed more quickly. Revised building standards also are being implemented that reduce the cost of customer service facilities by 10 percent and major facilities (mail processing facilities) by 25 percent. The Oklahoma City processing facility will be the first major plant to incorporate these changes. Its completion date is May 2008.

Facilities Projects
Projects Completed During 2007 Ongoing as of End of 2007
New construction, major renovations, and expansion projects 32 344
Building purchases 34 121
New lease construction 3 194
Other lease actions (e.g., alternate quarters, new leases, and lease renewals) 3,798 5,088
Expense repair and alteration Projects 6,256 4,487
Capital repair and alteration projects 5,142 21,439
Ongoing projects increased from previous year’s total due to change in counting methodology. Effective at the end of 2007, totals are all ongoing projects regardless of start date.
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