Search Results for: one public sector estate

January 13, 2017

Major corporate real estate occupiers struggle to balance cost cutting with strategic goals ⁰

by Mark Eltringham • Facilities management, News, Property, Workplace design

Although the world’s major corporate real estate occupiers retain a focus on managing the costs of their workplace when it comes to making the big decisions, there is a growing emphasis on offsetting this against issues such as staff recruitment and retention. That is the key finding of a new report from Cushman & Wakefield into the priorities and decision making of large corporate occupiers. It claims that firms are now far more focused on striking the right balance between goals that are often in direct opposition to one another. The study, produced in partnership with CoreNet Global, was based on interviews with 266 occupiers, three quarters of whom have more than 25 offices worldwide. The survey examined not only how location and workplace strategy are viewed as corporate value drivers, but also CRE’s alignment with business strategy.

November 9, 2016

Defence estate to be cut by a third as part of new estate strategy ⁰

by Mark Eltringham • News, Property, Public Sector

The latest part of the UK’s vast public sector estate that is being primed for a large scale sell-off is that of the Ministry of Defence. According to a government statement, 91 sites including more than fifty barracks, naval sites and airfields will be sold under plans to shrink the size of the defence estate by nearly a third. The MoD predicts that the sale will raise around £1 billion and cut running costs by around £140 million per annum, while the rest of the estate will benefit from the investment of around £4 billion to improve housing and facilities for personnel. Perhaps surprisingly the MoD also owns five golf courses which will be sold as part of the shake up announced in the newly published A Better Defence Estate strategy document.

October 27, 2016

One in six public sector jobs to be lost to automation, claims report ⁰

by Neil Franklin • News, Public Sector, Technology

Up to 861,000 public sector jobs in the UK – around 16 percent of the overall workforce – could be automated by 2030 according to research by Deloitte. The research builds on Deloitte’s work with Oxford University on job automation and is included in the firm’s The State of the State report for 2016-17 – its annual analysis of the state of public finances and the challenges facing public services. Deloitte’s previous work has shown that all sectors of the UK economy will be affected by automation in the next two decades, with 74 percent of jobs in transportation and storage, 59 percent of jobs in wholesale and retail and 56 percent of jobs in manufacturing having a high chance of being automated. The public sector includes higher numbers of roles in areas such as education and caring, as well as jobs requiring public interaction, all of which are at lower risk of automation. However, Deloitte calculates that automation could still lead to a reduction of up to £17 billion in public sector wage costs by 2030.

October 6, 2016

UK Government kicks off tender process for vast public sector property framework ⁰

by Mark Eltringham • Flexible working, News, Property, Public Sector

The UK Government will this week start the latest tendering process for the Estates Professional Services framework. Originally set up in 2008, the framework covers all central and local government property as the administration sets to rationalise and modernise the country’s entire public sector property estate and help to reduce the £8 billion annual spend. The terms of the framework were updated in an August 2016 briefing, laying out a series of case studies highlighting best practice as well as offering guidance t those firms who wish to bid for work across a range of product and service delivery models. The last set of contracts for services are due to expire in March 2017 and the Government remains committed to the inclusion of smaller providers. The framework covers a range of property-related services, including the reduction and divestment of parts of the estate, the renegotiation of leases, a reduction in running costs, support for the government’s sustainability agenda and the facilitation of flexible working and property sharing initiatives.

June 29, 2016

Brexit; a round-up of latest thoughts from the property and workplace sectors ⁰

by Mark Eltringham • Architecture, Cities, News, Property

Whatever your opinions on Brexit, there’s no doubt that it has created a range of frequently turbulent knock on effects in the workplace, commercial property, design and architecture sectors. We’ve shared some of the latest views on the next page to go with the initial reactions delivered by a still shell-shocked world that we published last Friday. One thing seems pretty clear is that for most firms, including those in the commercial property sector, there is no rush to judgement and most are prepared to continue business as usual while so much remains undecided. For the same reasons, the FT is reporting that some developers are putting projects on ice until they have more certainty and a report from researchers Green Street suggests that the eventual decision to leave the EU will result in a substantial fall in real estate values. Meanwhile, CIBSE is the latest organisation to calm fears about the impact of the UK leaving the EU.

February 3, 2016

Government plans to cut size of estate by 75 percent by 2023 ⁰

by Mark Eltringham • Facilities management, News, Property, Public Sector, Workplace design

The UK Government has today published the latest edition of its annual State of the Estate report, which gives an update on plans to consolidate, divest and modernise the central government property portfolio. Minister for the Cabinet Office Matt Hancock claims that the current administration has reduced the size of the estate by 2.4 million sq. m. since 2010. (As is the way of these things, the minister claims this is equivalent to 336football pitches, 43 Shards or more than the entire principality of Monaco. Presumably individual departments measured their own successes in blue whales and double decker buses.) He claims that this means that the total central government estate has fallen below 5,000 holdings for the first time and could fit inside the area of West Finchley (which is a new measurement on us). The reduction has been achieved by selling property ranging from the historic Old War Office (top) to an old bakery and lighthouse.

November 16, 2015

Some good and bad news about the Government’s real estate strategy ⁰

by Mark Eltringham • Facilities management, News, Public Sector

Two key themes have shaped the current UK Government’s attitude to its real estate and other resources since it came to office in 2010 and embarked on a programme of austerity. They are the twin desires to ‘cut waste’ and ‘do more with less’. These are not easy tricks to pull off, as a new report from the Institute for Government suggests. Published ahead of the upcoming Spending Review, the study sees the Government’s main challenge being how best to match its commitments with its resources. Two of the main ideas discussed are the rolling out of more digital services and what the paper calls institutional reform, which it suggests includes the loss of another 100,000 public sector jobs over the next five years. But as two news reports published over the weekend suggest, this kind of change can sometimes create more problems than it solves when it comes to Government property.

November 2, 2015

Insight Briefing: the growth of agile workplaces in the UK public sector ⁰

by Mark Eltringham • Flexible working, Insight Briefings, Premium Content, Public Sector, Workplace design

The process of transforming the UK’s public sector estate may have begun under the last Labour administration but it’s fair to say that change really began to kick in as a consequence of the austerity programme initiated by the current administration. Central Government departments and local authorities had already started exploring new ways of owning and occupying their property in the same way as their private sector contemporaries. Now they were incentivised to respond to an administration that was not only prepared to cut their budgets but was introducing frameworks and legislation that encouraged them to innovate and pioneer a new generation of agile workplaces. In our first Insight Briefing, produced in partnership with Connection, we look at how these forces for change have catalysed a new approach and challenged the idea that innovation in workplace design and management is primarily the preserve of the private sector.

September 21, 2015

New study highlights the key roles of real estate at UK’s top law firms ⁰

by Mark Eltringham • Case studies, Facilities management, News, Property, Workplace design

The UK’s top law firms are spending more on their real estate and allocating more space to staff, following years of reductions. Those are two of the key findings of a new report from The Lawyer magazine and property consultants JLL. Around half of the UK’s Top 200 law firms shared detailed data with the study, which also incorporates publicly available information on transactions. The study also takes into account the links between real estate strategy and broader strategic, management and human resources issues. While the report says the amount of space dedicated to each lawyer has risen by 7 percent over the last two years and the costs of owning real estate have also risen markedly, it also describes how many firms are now actively using flexible working to reduce real estate costs.The report concludes with a speculative look at future trends, including the uptake of coworking space.

July 29, 2015

Public sector lagging behind in use of technology and flexible working

by Mark Eltringham • Flexible working, News, Public Sector, Technology

As we reported last week, the UK public sector is embracing some interesting new ideas in the way it uses real estate, especially its commitment to get rid of some of it by adopting flexible working and shared space. However, it’s one thing looking to use space in more flexible ways but without the technological infrastructure, it’s hard to see how they will be able to achieve as much as they could. It is in this regard that they are lagging behind their contemporaries in the private sector, according to a new report from O2 and YouGov. While the report, Redefining selling, serving and working, offers up the usual appeals for us all to make more use of the sorts of things O2 wants us to buy, there is plenty of interesting detail to tease out once the pinch of salt has been applied, not least how business practices and the way people use technology vary across sectors.

July 24, 2015

Groundbreaking public sector estate scheme rolled out nationwide

by Mark Eltringham • Facilities management, News, Property, Public Sector

We’ve reported previously on the Government’s One Public Sector Estate scheme, which encourages local authorities to find ways to share office space and find other ways of divesting buildings as well as freeing up land for development. Over the past two years there has been a phased rollout of the scheme to 32 councils. Now the Cabinet Office and the Local Government Association claim they have gauged the success of the first two phases and are confident the scheme can be expanded nationwide. Their announcement suggests that the 32 councils who are currently on the programme own 28 percent of council land and property assets in England and have applied the ideas of the One Public Sector Estate Initiative to free up land for around 9,000 homes and create some 20,000 new jobs. The councils involved are also expected to raise £129 million in capital receipts from land sales and cut running costs by £77 million over 5 years.

January 22, 2015

MPs call on BBC to cut ‘staggering’ running costs of its estate

by Mark Eltringham • Facilities management, News, Public Sector

The body which oversees UK public spending has criticised the way the BBC is running its estate following the publication of a National Audit Office (NAO) report. While the report praises certain aspects of the way the estate is managed, especially its strategy of rationalising space, the Public Accounts Committee (PAC) is heavily critical of the BBC’s failure to meet its target of costs capped at 6 percent of licence fee income and the way the costs of some buildings are unacceptably high, including at the revamped Broadcasting House in London (above). According to the PAC, the running cost of the building is significantly more than others in the same area and around three times higher than a UK average. The BBC defended itself, highlighting progress in many parts of its estate and claiming that such comparisons did not stand up to scrutiny.