Jonathan Hall Uncovers: Post Offices

This post office near Harvard Square doesn't really stand out with its tile floors, counters and fluorescent lighting.

But the rent sure stands out. It's more than a million dollars a year.

Jonathan Hall, 7News
"It doesn't look good on paper, does it?"

Charles Lynch, U.S. Postal Service District Manager
"No, it's by far our most expensive."

It's the priciest post office lease anywhere in New England and one of the most expensive in the whole country.

Charles Lynch, U.S. Postal Service District Manager
"At the time, 8 years ago, our facilities people told us that it was a fair market value."

And the U.S. Postal Service is locked into this multi million dollar lease for two more years.

Jonathan Hall, 7News
"Do you wish it wasn't a 10 year lease that you entered into?"

Charles Lynch, U.S. Postal Service District Manager
"I wish it wasn't as high as it is."

What makes the situation worse, the Postal Service is currently dealing with a devastating $7 billion deficit.

We checked around, to see how much the Post Office might be able to save in a comparable location, and we found one, just a half mile up that street. It's prime retail space, right on Mass. Ave. It's somewhat smaller, but the rent would be $800,000 less a year.

Jonathan Hall, 7News
"Is that the kind of thing you would look at?"

Charles Lynch, U.S. Postal Service District Manager
"It is, absolutely."

And our investigation found some other things that just don't add up when it comes to U.S. Postal Service spending.

We found dozens of small Massachusetts towns have multiple post offices. A duplication of services that some say is a big waste of money.

For some perspective, Lowell and Cambridge each have about 100,000 residents and three post offices.

But look at Chatham. They have 6000 residents and four post offices.

And look at Marshfield with 25,000 residents. They have six, twice as many as Lowell or Cambridge. So many, that the one in Brant Rock is only 7/10s of a mile from this one in Ocean Bluff.

To fight its enormous deficit, the Postal Service is looking at closing hundreds of post offices across the country, including 10 in Massachusetts.

The focus right now is closing post offices in urban areas. but officials say eventually all post offices are at risk for consolidation.

Jonathan Hall, 7News
"Would you agree that if you've got four or five post offices in a smaller town, there might be some money to be saved there?"

Charles Lynch, U.S. Postal Service District Manager
"Absolutely, and we are looking at that."

The postmaster general says closings could begin as early as January, but there's no hard deadline.

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