Gov. Wes Moore’s administration announced Friday they’ll close nine government-owned office buildings in Baltimore over the next two to three decades, saving taxpayers an estimated $326 million.

The state will relocate employees working in the buildings to yet-to-be-determined spaces in the city’s central business district. The state plans to secure commercial lease agreements.

Included in the savings is $126 million for the previously planned relocation of state employees from the State Center complex.

The plans come after the state analyzed its real estate portfolio as part of a larger effort to save money and determined the cost of long-ignored renovations outweighed moving.

Moore tasked his executive branch in January with modernizing state government and cutting costs ahead of tough budget negotiations with the General Assembly to close a yawning $3.3 billion deficit.

Their penny pinching has found another $250 million over the next five years, according to the Moore administration, by streamlining procurement and purchasing vehicles and information technology equipment.

Moore said in a statement his team is “using data to save taxpayers money and modernize government in a targeted way.”

Moving out of state-owned assets and into buildings owned by commercial landlords comes with risks, but administration officials said the decision is “in the state’s best interests.”

Baltimore Mayor Brandon Scott said the move will complement other planned improvements in downtown Baltimore like Downtown RISE and redeveloping Harborplace.

“Baltimore’s Renaissance is here, and we want private and public sector workers alike to be excited about everything our city has to offer,” the Democrat said in a statement.

Shelonda Stokes, president of the Downtown Partnership of Baltimore, a nonprofit business improvement district, called Moore’s plan “thoughtful, strategic and intentional.”

“Optimizing our downtown real estate assets is an essential component of our strategy to reimagine the potential of the heart of our city for residents,” Stokes said.

The buildings include the Maryland Department of General Services’ home at ​2100 Guilford Ave. and the William Donald Schaefer Tower at 6 St. Paul St., home to the Public Service Commission and the Maryland Transit Administration.

The Nancy S. Grasmick State Education Building at 200 W. Baltimore St., which houses the Maryland State Department of Education and the Maryland Higher Education Commission, is also listed.

The Herbert R. O’Conor State Office Building, which houses the Maryland Department of Health headquarters and other buildings at State Center are also on the list.

Terri Harrington, managing principal at Harrington Commercial Real Estate Services, leases commercial property in downtown Baltimore including in state-owned buildings.

She said the state is factoring in key financial choices not unlike most individuals and families do before they decide to buy or rent a home.

Property owners, unlike renters, are responsible for all the expenses and upkeep, for high-ticket costs such as such HVAC, elevators and plumbing.

“If the state is just a tenant,” she said, “it doesn’t have to set aside funds for those expenses.”

“Another consideration is the economic impact of state agencies backfilling vacancies,” she said.

Those leases and the employees who follow, she said, drives foot traffic toward Baltimore businesses.

This article was updated to correct the spelling of the Herbert R. O'Conor building.