Public administration

2012

Assistance to the public administration for its real estate strategy

The public administration is pursuing a process of space optimization of its premises, in order to reduce its operating costs, while improving its services.

After an invitation to tender, the public administration decided to mandate SPGI Geneva SA to analyse the different potential development scenarios for 6 sites, located in the same area, and which will be available in 2014.

Bertrand Maag

Director - Head of Valuation & Consulting

The use of our models of analysis allowed us make a classification of the scenarios, per building, according to a grading system

The solution

Our very first mission was to understand our client’s needs and specific restrictions. Given that it is a public administration, certain peculiarities had to be considered. This led to a selection of relevant scenarios, in line with parameters specific to our client. Moreover, an objective model of analysis was created, considering different quantitative and qualitative factors. We had to examine the different buildings and gather some information in order to understand the operational and architectural specificities of each site. With this information in hand and its own tools of analysis, SPGI provided an analysis per site and scenario, allowing to draw which are the potential returns and costs for our client, how much time would be needed for the implementation of the strategy, and some more qualitative elements, such as the match between a scenario and the real estate market characteristics. Finally, given that the 6 sites were all geographically close and for coherence purposes, a global strategy was proposed

The result

Our work of analysis enabled an exhaustive view of the different selected scenarios and their consequences. In order to facilitate the decision, our results were summarized, which allowed to bring out the parameters to consider. Moreover, the use of our models of analysis allowed us make a classification of the scenarios, per building, according to a grading system. As the outcome of our analysis, a series of recommendations were made to our client, in order to implement the chosen strategy.