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State Farm Selling Office Buildings In Many Cities

Thu, 12 Sep 2013 15:12:07 CDT
By: Charlie Schlenker

State Farm Selling Office Buildings In Many Cities State Farm Insurance is selling 23 properties in 18 locations around the country including Bakersfield, California, Malta, New York, and Dupont, Washington. That's on top of existing agreements to sell office space in Austin, Atlanta, and Duluth. The Bloomington-based company is also building massive facilities in several other cities in Texas, Colorado, and Oregon as it transitions to a new digital era. WGLT asked State Farm CEO Ed Rust Junior whether the cities in which State Farm is selling property will eventually see job losses.

"Uh, I don't know. You know, it is a repositioning as we look at what do we need to do to give us the flexibility over the next ten years or more to better understand just where this is going."

In most cases after unloading ownership, Rust says, State Farm is immediately leasing the property back for five to fifteen years.

"In today's market with an historically low interest rates, it is a great opportunity to market real estate."

Rust has said company employment in Bloomington Normal is likely to remain fairly steady for the foreseeable future.

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