News Summary
Citizens Bank has listed its 25-acre office complex in East Providence for sale after almost three years without a buyer. The state is considering purchasing the site for $52 million to relocate up to 800 employees, aiming to cut office leasing costs. This potential sale comes amid concerns from local lawmakers regarding traffic and public transportation. Citizens Bank contributes significant taxes, raising worries about the financial impact on East Providence if the bank relocates. Legislative hearings are anticipated to evaluate the proposed purchase and its implications for state operations and local revenues.
Rhode Island – Citizens Bank has placed its 25-acre office complex located in the Riverside section of East Providence up for sale after unsuccessfully trying to find a buyer for nearly three years. This listing aligns with Governor Dan McKee’s proposal in the fiscal 2026 budget to purchase the property for state office use at a cost of $52 million. The plan aims to relocate up to 800 state employees in a bid to reduce ongoing office lease and maintenance expenses.
The state’s proposed purchase would incur approximately $52 million in operating and capital costs over the next five years due to the relocation. However, after this period, it is anticipated that the state will break even on its investment, ultimately leading to unspecified annual savings. The office building spans around 210,000 square feet and is equipped with a modern data center, adding to its appeal for state operations.
Currently, about 500 employees utilize the property, a reduction from over 900 prior to the COVID-19 pandemic. Following the sale, the remaining employees are expected to transition to Citizens Bank’s headquarters in Johnston. Despite the potential benefits of the purchase, previous proposals by Governor McKee faced skepticism from lawmakers over concerns regarding traffic, public transit options, and the state’s negotiating position.
In efforts to appease these concerns, the latest proposal suggests funding the purchase using the state’s long-term capital expenditures fund, moving away from the debt financing model used in previous requests. In Rhode Island, the average cost of office space leasing has decreased, moving from $22 per square foot to $21 per square foot in 2025, which may impact future state lease negotiations.
The state currently holds several costly leases, including an annual expenditure of $2.6 million for a 126,000 square-foot office in the Foundry complex in Providence, which expires in July 2026. Additional leases include a $75,000 per year rental for a 3,000-square-foot office for the Rhode Island Executive Office of Commerce and a $186,000 per year lease for the Human Rights Commission office. The maintenance costs of older state-owned properties have also raised concerns, with some buildings reportedly in such disrepair that they may need to be demolished.
Citizens Bank’s property is assessed at $16.9 million, and the bank contributes approximately $405,000 in annual property taxes on the site. Additionally, the bank generates about $1.78 million annually in tangible property taxes for equipment located at the complex. With the possible relocation of Citizens Bank, East Providence Mayor Bob DaSilva has expressed concerns about the financial implications for the city, particularly given the taxation contributions from the bank.
Lawmakers have indicated a readiness to examine Governor McKee’s proposal in upcoming legislative hearings. The proposal, along with any state purchases and leases, will also be reviewed by the State Properties Committee. As discussions advance, the future of the East Providence office complex remains uncertain, with potential ramifications for state operations and local revenues.
Deeper Dive: News & Info About This Topic
- Rhode Island Current
- Mortgage Professional America
- Banking Dive
- Boston Globe
- MassLive
- Wikipedia: Citizens Bank
- Google Search: Citizens Bank Rhode Island
- Google Scholar: Citizens Bank
- Encyclopedia Britannica: Citizens Bank
- Google News: Citizens Bank Rhode Island
Author: STAFF HERE PROVIDENCE WRITER
PROVIDENCE STAFF WRITER The PROVIDENCE STAFF WRITER represents the experienced team at HEREProvidence.com, your go-to source for actionable local news and information in Providence, Providence County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as WaterFire, Rhode Island International Film Festival, and Rhode Island Comic Con. Our coverage extends to key organizations like the Greater Providence Chamber of Commerce and Providence Warwick Convention & Visitors Bureau, plus leading businesses in finance and manufacturing that power the local economy such as Citizens Financial Group and Textron. As part of the broader HERE network, we provide comprehensive, credible insights into Rhode Island's dynamic landscape.
