Facilities Manager's Desk Reference, 3rd Edition

7Property and Estates Management

7.1 Introduction

The property portfolio or estate is a major element of cost for all organisations. It is often quoted as the second largest cost to an organisation, with the staff payroll as the largest expense in most organisations. Estate management may be the responsibility of a separate department in an organisation or outsourced to a specialist. Either way, it is an area in which FMs (facilities managers, or facilities management) need to gain an overall understanding, as the nature of the property portfolio will have an impact on the facilities’ operation. At a basic level, the FM needs to know whether the buildings are leased or owned, the restrictions or rules of their occupation, and the sizes of the buildings.

If an FM is to effectively manage the property portfolio on behalf of their organisation, they need to understand the organisational objectives so that the portfolio meets the infra structure needs of the business. This requires understanding how the properties are used, the nature of leases and covenants that may restrict use, and the future needs of the organisation in terms of space and location.

7.2 Property industry

The UK property industry is closely linked with the FM industry; however, it has its own drivers and characteristics. There are many specialists and professionals (such as agents, solicitors and surveyors) in this sector and it is useful to know what they do and how they affect the work of FMs. Financial institutions, ...