strategic RE Flashcards
Give me an example of a consolidation/rationalisation project? Highgate
The building is currently 30% vacant in an extremely high value area, options appraisal has been undertaken and alternative site search has begun.
Can you explain your wider organisational strategy?
To provide safe and efficient healthcare facilities and minimise the cost of the NHS Estate.
Key points you took from RICS Public Sector Asset Management Guidelines?
Outlines some of the benefits of strategic property asset management.
1. The introduction of co-location, partnership working and sharing knowledge between authorities.
2. The generation of efficiency gains, capital receipts and reliable revenue stream; and
3. An overall improvement of the public realm.
Also outlines examples of what good strategic property asset management might look like; - Link the property asset management plan to the corporate vision and policies- Consider all practical options for financing of new property assets - Collect, analyse, store and keep updated all relevant property asset data - Establish clear strategic approaches to the utilisation of space and flexible working and co-location with partners and stakeholders
How did you verify the sensor collected data?
Reliability measures - they use passive infrared technology that monitors both movement and heat to prevent false positives of something moving around (like a fan) logging it as occupied.
The sensors are connected to a host unit that logs minute by minute data, and will send a warning if its disconnected for any reason so that technical glitches/human intervention can be remedied. Arguably more reliable than tradtitional clip board based models as provides more granuality of detail and count miscount etc. Also further sense-checked the data collected by the sensor by comparing it to a spot check of a quick sample manual utilisation survey that I undertook whilst on inspection.
How did the utilisation data inform the requirement for existing services?
I recommended to go with peak utilisation for each dept +10% and then undertook indicative space planning using benchmarks to map desk numbers to an NIA.
This also took into account support accommodation required i.e. storage/circulation/meeting rooms/ It was important to run the sensor utilisation survey alongside a series of workplace assessment interview to understand the bigger picture behind the data, and understand the patterns and requirements that wouldn’t have been evident with the data alone.
What were the cost savings (Lennard Road)
A 40% reduction in the NIA required – 1,222m2 from 2,051 m2.FM/SC Currently - £237,174.83Rent: £246,163.20 = £120psm p.a. Rent reduction of nearly £100,000 (£99,497.46)• Total savings per annum £195,000 • Cost of adaptation works (estimated by construction £300,000)
What were the other objectives the CCG had? (need more?)
Objectives included
- Ensuring spaces are fit for purpose
- Ensuring spaces are well used
- Ensuring spaces represent value for money Wider objectives;
• Engaging with Primary Care to support practices to use digital services to develop their role in Primary Care Networks.
• To support local people and stakeholders to have a greater influence on services we commission
• To promote equality both as an employer and a commissioner of health care services
• To create a high performing and sustainable workforce that continuously learns and is engaged in delivering our ambitions.
• Reduction in Re-admissions
• Improve the quality of accommodation ensuring buildings are modern and fit for purpose to improve patient experience.
What other benefits other than cost did your …. bring?
none
How did you present your advice
I presentented my advice in person as it would allow me to read an non-verbal cues and quickly allay any concerns my client may have had. I presented with Graphs highlighting cost savings and showed how overall accommodation could be improved.
What is clinical activity data?
List of commissioned services per provider
What was the future occupancy requirement (Westminster)?
800-1000sqm
What did your work involve to produce the proposed layout plan? (Westminster)?
Compiling information relating to;
- Current accommodation for each service
- Clinical activity/list size for each service
- Provider for each service ( as a single occupier can more easily drive efficiencies within the services it delivers.
- Building operating hours
- Department of health guidance for room sizes, accommodation required and clinical adjacencies.
How did the information you gathered inform the space requirement? (Hunter Street)
- Take current accommodation
- Clinical activity (commissioned/list size)
- Building opening hours
- HBN guidance for room size
This can then be put into a model to calculate a space requirement.
How did you present your analysis? (Hunter?)
I presented my analysis in person as there was a lot of detail to go through and I felt this was the most effective way of being able to respond efficiently to questions and provide reasoned advice.
What consideration did you give to future growth on your utilisation survey?
My client provided me with a forecasted staff turnover, resulting in a net increase of employees of 25 over the next 36 months. I incorporated another 25 FTE into my analysis.
Talk me through your cost benefit analysis of co-location. (Hunter)
First identified where there would be opportunity to re-locate practices.
- Did this by using a scoring matrix with key criteria agreed with the client including, under utilised opp, over capacity opp, same PCN, right distance (under 0.5m)
- Analysed patient heat map data Once the preferred GPs were selected, then identified the costs of relocation including capital outlay, reconfiguration/required/disruption/moves costs.
This was then compared to the benefits
- running cost savings
- realising STP goals of disposal proceeds/housing units/integrated systems of care
- efficiencies from working together.
Important to recognise/mention that there were quantifiable costs and benefits (that I was able to model in a cash-flow to compare the capital and revenue outlays and the NPV) as well as qualitative ones, and scored each option against the agreed criteria e.g. the Soho one.
Did you consider quality of space or just quantity? (City of London)
On similar instructions I would also consider the quality of the space. I believe it is important to always consider the human element of strategic real estate advice. However, in this instance the relocations were within the same building and so there was no material impact on quality of the space.
How did you present that data KPIs/Graphs?
I presented the data using graphs and charts to capture the financial implications but also the responses from the stakeholder engagement.
Why was the building 1/3 vacant? Were there any issues with the space or had the tenant simply moved out?
No issues with the space, was formerly used as an admin facility and rents are very high for an admin usage so the occupier relocated to cheaper premises.
You have identified co-location of GP’s but what other options might have been available to mitigate void costs? - especially if building was leasehold ? Did your report to clients explore these other options > if not, why not ? (Camden)
If the building was leasehold could have looked to re-gear the lease taking less space. As it was a freehold and a cost being incurred by my client this wasn’t possible. Also considered just moving another occupier in, however it was thought that from a system perspective, given the lease events and possibility to co-locate this would provide a better outcome for my client in the long term.
In terms of co-locating and thus having a multi-tenanted building – what operational matters would you need to consider as part of your strategic advice to the client? (Camden)
Rent / service charge / FM costs – making sure shared space is billed correctly (i.e. percentage of shared space based on how much floor area occupied in the whole building)
Receptions – would there be a shared reception at the front directing people to each GP, or would they both have separate receptions
Separate entrances?
Parking – separate allocated spaces?
Privacy – you might advise to have security passes for the tenant’s demised areas to protect sensitive information from the other tenants (e.g. patient records)
What were the cost savings for….?
Current rent GPs = £235,600 (6,200sq ft @ £38psf)• New rent = £148,800 (4650 sq ft @ £32psf) (75% of previous) • £86,800 per annum saving. • Cost of move £1.1m (largely reconfiguration works, listed building consent (estimate from construction team)
What was your advice (Camden)?
I advised on the impact for patients in terms of walking distance was minimal
• I advised relocating would be the best option for the system over a 20 year period
• I advised utilising the break options and if no clinical requirement to declare the other building surplus to enable disposal
• Advised the benefits in the long term but also the short term of a disposal in a high value area
• I advised that from a qualitative perspective, better facilities for patients and staff
You have stated that you undertook a utilisation study – how did you do this ? - explain methodology, times and length of survey – what were you actually measuring (ie occupied desk / laptop on desk).
Utilisation period – 4 weeks (varied days and times) – to try and capture an accurate picture which would not be skewed by abnormal utilisation, not reflective of the rest of the week. i.e. 10am on a Monday.
Avoided school holidays although that advised that utilisation would likely be lower during these times. Week one – Monday Wednesday and Friday (11am) Week two – Tuesday and Thursday (11am)
Week three - Monday, Wednesday and Friday (3pm)
Week 4 - Tuesday and Thursday (3pm)
Methodology was signs of life at desk and traffic light system i.e. laptop, jacket. To avoid double counting employees sat in the communal spaces with someone/ in a meeting were not counted.
What consideration did you give to future growth on your utilisation survey? (City)
My client provided me with a forecasted staff turnover, resulting in a net increase of employees of 25 over the next 36 months. I incorporated another 25 FTE into my analysis.
How did this (utilisation survey) help from a strategic/overall prospective? (City)
My client was considering acquiring more space and would’ve looked at their own portfolio in the first instance. Negating the need to acquire more space through departmental relocations. Still being able to increase the number of employees in the office without needing to acquire more space helped meet my client’s objective in relation to sustainable growth.- One organisational objective was to reduce cost per employee from £6,500 to £6,000 - this would help to achieve that with the addition of 25 more employees. From a qualitative point of few it helped meet my client’s objective of increasing collaborative working.
