Property landlord Precinct has missed out in the first round of providing office space for government departments.
The Crown is attempting to save money by centralising its property leasing operations and using office space better.
It's called tenders for 50,000 - 60,000 square metres of space needed between 2014 - 2017 for a number of departments, including the Ministry of Health, the Ministry of Social Development and Ministry of Business, Innovation & Employment.
Precinct says its Bowen Campus, which houses the Ministry of Social Development, was unsuccessful, at least in this round.
Chief executive Scott Pritchard said he's confident that the 30,000 square metre site will continue to be required to house government agencies.
The Ministry of Social Development's lease runs out in 2015.
Precinct's shares have fallen 2.5 cents to $1.00 each.
State Services Minister Jonathan Coleman says a business case indicated a reduction of office needs of 30% would save $338 million over 20 years, a saving of about 20%.
