Education ministry halves office space after move

The Ministry of Children and Education will move into premises half the size of its current offices, while paying a higher rent per square metre, mbl.is reports. The ministry pays 5,950 krónur per square metre each month at Kalkofnsvegur 2, compared with 3,856 krónur at Borgartún 33.

The ministry previously said the move would save just over 260,000 krónur a month. The saving is possible because the new premises measure 1,140 square metres, compared with 2,232 square metres at Borgartún 33. The ministry attributed the reduction in space partly to a substantial decrease in staff positions and to more efficient organisation of the new offices.

The ministry left its former premises at Sölvhólsgata 2 after mould and moisture damage made working conditions unacceptable. It then moved to Borgartún 33, which is leased from Landsbankinn under a contract running until April 30, 2032. Six years remain on the lease.

The government property agency is examining which institutions could use the Borgartún premises after the ministry leaves. An initial assessment indicates that two institutions could move in, which would reduce their accommodation costs. The Ministry of Education and School Services has already taken over part of the space temporarily. The ministry said the premises are not expected to remain vacant.

Rent at Borgartún is about 9.3 million krónur a month, or 111 million krónur a year. Rent at Kalkofnsvegur is 7.6 million krónur a month, or just under 91 million krónur a year. Value-added tax of just over 17 million krónur a year is added to the rent at Kalkofnsvegur and returns to the state treasury. The ministry said it would no longer bear the cost of Borgartún 33 after moving, but its response did not specify who would cover the remaining lease costs.

The ministry also expects savings on travel because the new offices are closer to other ministries, the Government Offices service centre and Alþingi, Iceland’s parliament. The lease at Kalkofnsvegur 2 runs until September 20, 2031. The premises were unfinished when the lease was signed, and the landlord is paying for the fit-out to meet the ministry’s needs.