on Jul 30th, 2012 in Finances: Cost & Revenue | 2 comments
 
The U.S. Postal Service is one of the largest real estate owners in the United States with more than 8,600 facilities and 950 million square feet of land. (The Postal Service leases another 24,600 facilities.) It also has about 357 unused land parcels with no structures on them, which have a book value of $128 million. The lands’ assessed values are likely to be significantly higher. The Postal Service has contracted with real estate company C.B. Richard Ellis to sell its surplus real estate, which includes both buildings and land. You can find the properties on the following website, http://www.uspspropertiesforsale.com/. The sale of properties would generate cash flow for the financially strapped organization. It would also contribute to streamlining its physical footprint as the Postal Service aligns itself to be a leaner, faster, and more market-responsive organization. However, the sale of real estate assets would not produce recurring revenues. Should the Postal Service consider leasing unused land parcels to developers so they can be used in a creative way to generate alternative sources of revenue? Or is this the right time for the Postal Service to sell its unused land parcels as it shapes itself into a leaner infrastructure? Or does it make sense for the Postal Service to hold these properties now and try selling them once the current real estate market regains some stability?

2 Comments


Renting un-needed space when there is a positive cash flow should be a no brainer. Also, USPS rents many small offices, and those that might be closed, or have their hours reduced, may be able to generate incomes.

If we own so much land then why are we renting buildings and land we should be owning. We are waisting money and giving it to other companies instead of putting it back into the Postal Service's pocket. The same goes for flying our mail. Why is FedEx flying our stuff. We have been around for a lot longer than any of these other companies and should own our own planes. People always see UPS planes and FedEx planes, what if they started seeing USPS planes with a big huge Eagle on it. Wouldn't that be something to be proud of...

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