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Corporate Real Estate

Local Authority Client

 Background

 

Metropolitan Council’s office accommodation suffered from many years of neglect due to diversion of budgets away from to property maintenance to core services, to the point of some building becoming inoperable. Other buildings were not fit for purpose with below average performance in terms of costs, suitability and utilisation. A major cost and risk to the organisation which was not sustainable. An Outline Business Case was provided to provide a robust case for change.

 

The Issues 

  • 600,000 sq ft (only 60% gross : net floor area ratio) of office accommodation contained in 41 buildings throughout the Borough;
  • 2,000 staff and 2,000 plus workstations and inefficient use of space (only 1 space per 30 sq m against target of 1 space per 12 sq m overall));
  • 1.5 million miles per annum travelled to and from internal meetings;
  • Major backlog repairs of £8 million and above average running costs;
  • Low staff morale, staff retention and high sickness rate
  • Ongoing revenue and capital budget shortfall.

 

The Solution 

  • Options appraisal to identify preferred operational model and property solution to support that model;
  • Consideration of strategic objectives, future service delivery options, issues, initiatives, procurement, partnerships opportunities and overall policies;
  • Identified requirement and relocation to 250,000 sq ft in central (back office) HQ supported by 5 customer facing satellite buildings also providing touchdown facilities;
  • Incorporation of IT opportunities for document storage and new ways of working to support new operational and property model; and
  • Strategic Partnership to deliver new accommodation including existing property transfer, investment portfolio, development and regeneration opportunities and hard FM services.

 

The Benefits 

  • More efficient use of less space that supports business operation;
  • Substantial saving in revenue costs and ability to devote more resources to core activities;
  • Provision of range of flexible workplace settings within and outside of the HQ and satellites (eg home, partner site); and
  • Brought forward thinking and implementation of IT, document storage and other strategies.

 

 

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