Bay Area/ San Jose

California Throws Open Empty State Buildings, Dares Developers To Build Homes

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Published on January 27, 2026
California Throws Open Empty State Buildings, Dares Developers To Build HomesSource: Antony-22, CC BY-SA 4.0, via Wikimedia Commons

The state rolled out an online portal yesterday that is supposed to cut early red tape and move state-owned buildings faster from underused office space to housing and commercial projects.

The new dashboard lists 19 surplus properties around the state, including 15 that are open for proposals and one already under agreement. It shifts the first round of applications to a simpler, rolling review that is meant to get viable concepts into the construction pipeline sooner, according to The Sacramento Bee. The initial batch of listings spans several regions, but none are in the Sacramento area, the outlet reported.

In a statement to The Sacramento Bee, Department of General Services Director Ana Lasso said the portal “modernizes engagement with developers and unlocks opportunities for job creation and economic growth.” State officials say they are courting both straight-up housing proposals and mixed-use commercial ideas for the listed parcels.

How the portal builds on existing tools

The dashboard sits on top of the Developer Interest Submission Portal that launched in February 2025, which opened a continuous application track for excess state sites flagged for affordable housing. It adds a separate list for surplus properties that can be turned into commercial projects, according to the Department of General Services.

Instead of waiting for the state to issue site-specific solicitations, developers can now browse a digitized inventory, check maps and details, and upload required documents directly through the state's online map viewer.

Where the listings fit in the state's housing push

The portal arrives as the Newsom administration says its excess-sites strategy has created a pipeline of 32 projects that could produce nearly 4,300 homes. In November, the governor's office also announced six new projects on state land that are expected to add more than 800 units, according to the Governor's office.

Officials say the online tools are supposed to keep that pipeline moving, while also making it easier for developers to combine housing with retail or services on state-owned parcels.

Downtown Sacramento plan still unresolved

One thing the portal does not do is revive the high-profile plan to convert several Capitol Mall office buildings in downtown Sacramento. That proposal, which had selected McCormack Baron Salazar as the developer, stalled after the firm pulled out last year over concerns about funding and feasibility. The move left the future of the Employment Development Department buildings and nearby sites in limbo, as previously reported by KCRA.

Why the change matters

A 2021 review found that DGS had tagged 92 state properties as potentially suitable for housing, but only 19 had actually been offered to developers. The report warned that staffing shortages were slowing the agency's push to put idle parcels back to productive use, according to the California State Auditor.

Housing advocates and local officials say a simpler, all-in-one portal and rolling review could shave months off the time it takes to get from identifying a site to breaking ground, if the state can keep the back-end work moving.

What developers need to know

Developers can submit proposals for listed sites on a rolling basis. DGS says it will weigh submissions against state priorities that include how doable a project is, the expected financial return, and the local or regional impact. The selected developer will be expected to build the project as proposed, according to the Department of General Services.

Site-specific deadlines, application checklists, and FAQs are posted on the state's excess-sites map viewer and on DGS real estate webpages, giving interested builders a central place to start.

For now, the new portal is the state's latest bet that unused public land can be recycled into housing, jobs, and neighborhood-serving retail. Developers and community groups will be watching to see whether this streamlined approach actually moves projects faster from state file cabinets to construction sites.