Otago chief operating officer Stephen Willis said the move, which started last week, aimed to use the university’s space to its "full potential", in line with its Pae Tata Strategic Plan to 2030.
"Our Pae Tata Strategic Plan to 2030 pledges to reduce our space use, year-on-year, because we cannot afford the costs associated with continuing to occupy the amount of space we are using, and we are not using our existing space to its full potential."
Based on comparisons with other Australasian universities, Otago had far more space than it should need.
Space was the university’s second-biggest expense in terms of rates, insurance, energy, repairs, maintenance, cleaning, waste disposal, security, leases, property management and depreciation (buildings losing value over time), he said.
"The operations group is working hard to save space and co-locate staff into safer and more appropriate buildings on the periphery of the main campus.
"This is because space is a critical and valuable resource that we have a collective responsibility to manage well, for our university’s financial sustainability and to support an approach that seeks to redefine how we can use our buildings and space."
The cost saving of the move was not yet fully quantified, but there was expected to be at least $1.4m of energy and cleaning cost savings alone between 2025 and 2041, and $27m as a result of not needing to spend money on replacing the existing Property Services building in Albany St.
Many staff worked more flexibly, and regularly worked on and off campus.
The move would allow relocated staff to use bookable desks, which would save space, money, enhance collaboration and create more student-facing space on the central campus.
Earlier this year, the Pathway and English Language Centre moved out of the Plaza Building and into the Otago Business School, costing about $8.5m.
Moving the operations group staff into the vacated space was expected to cost about $1.5 million.
Last week, Property and Campus Development (111 Albany St), Continuous Improvement (Archway), and Information Technology Services (Tower Block) moved to the Plaza and officially started work there this week.
Today and tomorrow, Information Technology Services staff from 51 Clyde St and Leith Bank houses will make the move to the Plaza and will resume work on Monday.
Later next week, the remaining Information Technology Services staff (including corporate records), the Otago University Digital Workspace project at 444 Great King St, and remaining operations staff at Oceania House, Hanover St and the Clocktower will make the move to the Plaza.
Mr Willis said some vacated buildings could be sold or leased, generating income and cutting university occupancy costs such as maintenance, power, cleaning and insurance.
Some buildings or sites may also have the potential to be income-earning residential accommodation for domestic and international students.
Non-heritage buildings that needed cost-prohibitive work to meet modern seismic standards would be mothballed or demolished, reducing both risks and ongoing maintenance or future replacement costs.
"For example, replacing the dilapidated Property Services building at 111 Albany St would have cost about $27m.
"Now it is being vacated and likely to be demolished in the coming years."
