Property Management Planning Guidance - Department of Finance ...

18
FMG
January 2010
Property Management
Planning Guidance
FINANCIAL MANAGEMENT GUIDANCE NO. 18

January 2010
Property Management
Planning Guidance
FINANCIAL MANAGEMENT GUIDANCE NO. 18

ii
© Commonwealth of Australia 2010
ISBN 978-1-921600-38-8 (Print)
ISBN 978-1-921600-37-1 (Online)
Department of Finance and Deregulation
Asset Management Group
This work is copyright. Apart from any use as permitted under the Copyright Act 1968,
no part may be reproduced by any process without prior written permission from the
Commonwealth. Requests and inquiries concerning reproduction and rights should be
addressed to the:
Commonwealth Copyright Administration
Attorney General’s Department
National Circuit
Barton ACT 2600
or posted at http://www.ag.gov.au/cca
Acknowledgements
Photographs taken by Steve Keough, Steve Keough Photography
Copyright: Department of Finance and Deregulation

The Financial Management Guidance series of publications
No. 1 Commonwealth Procurement Guidelines, December 2008.
No. 2 Australian Government Foreign Exchange Risk Management Guidelines,
September 2006.
No. 3 Guidance on Confidentiality in Procurement, July 2007.
No. 4 Australian Government Cost Recovery Guidelines, July 2005.
No. 6 Guidelines for Issuing and Managing Indemnities, Guarantees, Warranties and
Letters of Comfort, September 2003.
No. 7 Guidelines for the Management of Special Accounts, October 2003.
No. 8 Guidance on the Listing of Contract Details on the Internet (Meeting the Senate
Order on Departmental and Agency Contracts), January 2004.
No. 9 Australian Government Competitive Neutrality Guidelines for Managers,
February 2004.
No. 10 Guidance on Complying with Legislation and Government Policy in Procurement,
January 2005.
No. 11 The Role of the CFO – Guidance for Commonwealth Agencies, April 2003.
No. 13 Guidance on the Mandatory Procurement Procedures, January 2005.
No. 14 Guidance on Ethics and Probity in Government Procurement, January 2005.
No. 15 Guidance on Procurement Publishing Obligations, July 2007.
No. 16 Commonwealth Property Management Guidelines, October 2009.
No. 17 Public Private Partnerships: Business Case Development, December 2006.
No. 18 Property Management Planning Guidance, January 2010.
No. 20 Guidance on the Gateway Review Process – A Project Assurance Methodology for
the Australian Government, August 2006.
No. 22 Guidelines on Recruitment Advertising, July 2009.
No. 23 Commonwealth Grant Guidelines, July 2009.
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The Financial Management Reference series of publications
No. 1 List of Australian Government Bodies and Governance Relationships.
No. 2 Governance Arrangements for Australian Government Bodies.
No. 3 Financial Management and Accountability Legislation, October 2005.
No. 4 Commonwealth Authorities and Companies Legislation, February 2006.
No. 5 Introduction to Cost-Benefit Analysis and Alternative Evaluation Methodologies,
January 2006.
No. 6 Handbook of Cost-Benefit Analysis, January 2006.
No. 7 Gateway Review Process – A Handbook for Conducting Gateway Reviews,
August 2006.
The Good Procurement Practice Guidance series of publications
No. 1 Chief Executive’s Instructions and Operational Guidelines for Procurement,
November 2006.
No. 2 Preparing and Maintaining an Annual Procurement Plan, November 2006.
No. 3 Cooperative Agency Procurement, December 2007.
No. 4 Establishing and Using Panels, December 2007.
No. 5 Establishing and Using Multi-Use Lists, December 2007.
No. 6 Providing Feedback and Handling Complaints, December 2007.

Contents
1. Introduction 1
2. Overview of property management plans 5
3. Better practice property management planning 9
4. Structure of a property management plan 17
Appendices:
Appendix A: Glossary 28
Appendix B: Property profile – better practice templates
B1 Property details 30
B2 Property performance 30
Appendix C: Gap Analysis – better practice template 31
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1
Introduction

2
1
Application
Introduction
1.1 The Commonwealth Property Management Guidelines (the Property Guidelines)
require agencies subject to the Financial Management and Accountability Act 1997
(FMA Act) to establish a property management plan.
1.2 This Property Management Planning Guidance (the Planning Guidance) has
been developed to assist FMA Act agencies (agencies) to produce property
management plans.
Context
1.3 An agency’s property management plan is to be approved by the agency’s
Chief Executive (or an official authorised by the Chief Executive) and in place by
1 October 2010. The property management plan is to apply to properties leased or
owned by the agency within Australia (including external territories). 1
1.4 A property management plan is an internal planning document designed to assist
the Chief Executive (or an official authorised by the Chief Executive) to promote
the efficient, effective and ethical use of Commonwealth resources in the delivery
of the agency’s property requirements.
1.5 Property management planning is one of the five principles outlined in the
Property Guidelines for efficient, effective and ethical property management.
The other key principles are: value for money; efficient and effective design;
appropriate accountability measures; and cooperative Commonwealth
property management.
1.6 Property management relates to the effective operation of an agency’s workplace
and infrastructure and coordination with its business activities, employees and
stakeholders. The range of property management responsibilities will vary across
agencies depending on size, diversity of operations and changing functions.
However, property management will generally encompass the following:
• acquisition (including leasing);
• repairs and maintenance;
• refurbishments (fit-out and capital improvements);
• lease management;
• health and safety;
• energy and sustainability management; and
• facilities management (including security and cleaning).
1 Australian external territories comprise the territory of Christmas Island, the territory of Cocos
(Keeling) Islands, Norfolk Island, Ashmore and Cartier Islands, the Coral Sea Islands Territory,
the Australian Antarctic Territory, and the territory of Heard and McDonald Islands.

Purpose of this Planning Guidance
Introduction 1
1.7 This Planning Guidance is intended as a better practice tool to support a
structured approach to property planning. The Planning Guidance should help
agencies to:
• set property objectives and define performance indicators;
• assess performance within the property portfolio using relevant performance
indicators;
• ensure that the quantity, functionality, quality, cost and availability of property
are appropriate;
• identify opportunities for property to better support the strategic direction
and business needs of the agency;
• assess options for the acquisition, sharing, renovation and disposal of property,
and associated change management; and
• manage the frequency of reviews and updates.
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2
Overview of property
management plans

6
2
Overview of property management
plans
Purpose of property management plans
2.1 Property management plans are an important strategic planning tool for
agencies. A property management plan should enable the Chief Executive (or
an official authorised by the Chief Executive) to establish that the agency’s
property is appropriate for the size and nature of the agency’s existing and future
business needs.
2.2 Property management plans should be treated as dynamic and flexible
documents that can be adapted to support Government initiatives and
agency objectives.
2.3 Property management plans should be prepared in conjunction with and directly
linked to an agency’s broader strategic plans, including business and corporate
plans. The linking to strategic plans will ensure that property management is
closely aligned with other agency objectives and that property management
issues are well understood and given appropriate consideration by executive
management within the agency.
2.4 Where agencies have capital asset management plans or other relevant plans for
the management of property, reference to these plans or inclusion of key details in
the property management plan can prevent duplication of planning activities.
2.5 Property management plans should consider the short and long-term challenges
faced by property managers, as well as the longer-term property requirements of
the agency. Some of these challenges include:
• monitoring and managing the performance of the property portfolio;
• managing property risks (including business continuity risks);
• aligning property arrangements with the agency’s business needs;
• identifying opportunities and selecting and implementing strategies for
improvement;
• assessing market forces and economic cycles that affect leased properties, and
planning the timing of critical property decisions accordingly;
• managing employee participation and input;
• reducing energy use and environmental impacts;
• complying with relevant legislation and Government policies; and
• managing any requirements to have properties in certain geographic locations
(e.g. through legislation, community service obligations or other mandate)
while maintaining an efficient property portfolio.

Overview of property management
plans
Level of complexity
2.6 The complexity of a property management plan should reflect the size, nature
and risk profile of an agency’s property requirements. For example, an agency that
manages diverse operations in various locations would normally require a more
detailed property management plan than an agency with a small number of
leases and few changes in its property requirements.
Accountability and responsibility
2.7 Property management plans should outline clear lines of accountability and
responsibility for: the development, approval, implementation, and review of the
property management plan; delivery of specific projects listed in the property
management plan; and the ongoing maintenance of the agency’s property.
Frequency of reviews
2.8 Property management plans should be reviewed and updated on an annual
basis, or more regularly if circumstances require, to allow the plan to remain
aligned with the objectives of the agency. Where agencies have less dynamic or
complicated property portfolios it may be appropriate to review and submit the
plan to the Chief Executive (or an official authorised by the Chief Executive) for
approval every two or three years.
2.9 Property management plans should also be reviewed and updated whenever an
unforeseen event occurs that is significant enough to have a major impact on
the property requirements of the agency. Examples of events that may trigger a
review include:
• Machinery of Government changes;
• updating of interrelated strategic plans;
• movement of head office or a major function to a new location;
• a major refurbishment or fit-out;
• significant organisational restructures or changes in agency function; or
• new policy proposals.
The property management plan can alert the Chief Executive (or an official
authorised by the Chief Executive) to changes that would trigger an
immediate review.
2.10 Whenever material updates are made to the property management plan, the
revised plan should be submitted to the agency’s Chief Executive (or an official
authorised by the Chief Executive) for approval.
2
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3
Better practice property
management planning

10
3
Better practice property management
planning
Better practice property management plans
3.1 The content and format of property management plans are to be determined
by each agency and should reflect the property requirements of the agency
concerned. However, as a better practice guide, property management
plans should:
• set out the time period covered by the plan and the timing of future reviews;
• analyse business needs;
• provide an account of the existing property portfolio;
• identify any future requirements (including any gaps to be filled);
• be aligned with the needs and future direction of the agency
(including corporate or business plans);
• identify significant risks related to the agency’s property and set out
mitigation strategies, including any associated actions;
• identify opportunities and strategies to meet property requirements;
• outline how strategies will be implemented;
• provide for monitoring of the property portfolio against relevant performance
indicators;
• identify performance goals and how achievement will be measured; and
• provide clear lines of responsibility and accountability.
3.2 Part four of this Planning Guidance outlines a possible structure to assist agencies
to incorporate the better practice principles outlined in paragraph 3.1. Part four
also outlines suggested content inclusions and provides a guide to the length of
each section.
Setting of property objectives
3.3 Property objectives should be determined by the agency after taking into account
the functions and business needs of the agency, the purpose and use of each
property, all relevant Government policies 2 and other planning and management
issues facing the agency.
Use of performance indicators
3.4 Performance indicators should be used by agencies to measure and compare the
performance of their properties. They are aligned to goals and objectives. Well set
performance indicators should help the agency to improve the performance of
its properties and assist property managers to demonstrate progress towards or
achievement of the agency’s property objectives.
2 Including occupational health and safety requirements.

Better practice property management
planning
3.5 Agencies may wish to consider using the performance indicators listed below
in property management plans. 3 Use of these indicators can assist with trend
analysis, comparison between similar properties or property portfolios and allow
for assessment against market conditions and forecasts.
Indicator type Indicator
Property utilisation 4
Costs
Work practices
Environmental
sustainability
Fit-out density (m 2 / workpoint)
Occupational density (m 2 / occupied workpoint)
Workpoint vacancy (%)
Rent per square metre ($ / m 2 / p.a.)
Other property operating costs per square metre
($ / m 2 / p.a.)
Total property costs per square metre ($ / m 2 / p.a.)
Total property costs per occupied workpoint
($ / occupied workpoint / p.a.)
Total property costs as a percentage of total operating expenses (%)
Percentage of staff participating in formal desk-sharing or formal
work from home arrangements (%)
Energy usage per square metre (MJ / m 2 / p.a.) - Base Building
Energy usage per person (MJ / occupied workpoint / p.a.) - Tenancy
National Australian Built Environment Rating System (NABERS)
Energy rating (stars) - Tenancy and Base Building
3.6 When using any performance indicator to assess the performance of properties,
consideration should be given to the level of influence or control that the agency
has over that indicator. For example, where an agency is leasing/occupying part of
a property, then this should be noted in the property management plan and taken
into account when assessing performance against the indicators.
3 Whole-of-Government property indicators are being developed as part of the Australian
Government’s Property Data Collection (PRODAC). The PRODAC indicators are still subject to
agency consultation, testing and approval and therefore may not correspond to the indicators
suggested in the Planning Guidance.
4 The Australian Government occupational density target is 16 square metres per occupied
workpoint. Refer to the Data Specifications – Australian Government Property Data Collection for
further information. This publication is available at www.finance.gov.au.
3
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3
Better practice property management
planning
3.7 The performance indicators suggested for property utilisation are based on
the whole-of-Government indicators developed as part of the Australian
Government’s Property Data Collection (PRODAC). These indicators are applicable
to office accommodation and are defined in the PRODAC specifications. 5
3.8 When using indicators relating to property costs it is good practice to note all of
the specific costs included in any aggregate figures. This will enable more accurate
cost comparisons over time or with other agencies. These costs may include
whole-of-life maintenance costs.
3.9 Performance indicators relevant to other Government policies may be useful to
incorporate into the property management plan where considered appropriate
(e.g. performance indicators relating to the environmental performance of a
property or other performance indicators that must be disclosed or reported).
Where an agency has an environmental management plan that includes targets
for reducing water and waste, it may be appropriate to include such indicators
in the property management plan. The inclusion of such indicators may enable
performance or compliance against Government policies to be tracked over time.
Risk management
3.10 Risk management involves the systematic identification, analysis, treatment and
allocation of risks.
3.11 Agencies should ensure that they have appropriate risk management procedures
in place so that all significant risks are identified and assessed. Relevant risks and
strategies to manage and mitigate these risks should be outlined in property
management plans.
3.12 Risks relating to property management may include:
• changes to the agency’s role or property requirements due to machinery of
Government, policy or budget changes;
• failure to accurately identify space requirements (in terms of location, quality
or quantity);
• insufficient or inappropriate resources to carry out the agency’s propertyrelated
activities e.g. lack of employees with the necessary skills;
• management systems not being able to identify inefficient use of space;
• poor maintenance of records e.g. inadequate lease documentation, key
documents not filed;
• unduly onerous lease clauses;
5 The PRODAC specifications are provided in the Data Specifications – Australian Government
Property Data Collection. This publication is available at www.finance.gov.au.

Better practice property management
planning
• failure to understand and enforce contract provisions e.g. failure to exercise a
lease option within the trigger period;
• inflexible property portfolio that cannot adapt to meet changing business
requirements;
• damage to buildings and other property assets from adverse natural events
e.g. storms, flooding and fire;
• exposure to hazards or environmental contamination;
• loss of property due to damage;
• failure of key infrastructure e.g. fire detection equipment; and
• failure to support unique agency requirements, such as an uninterrupted
power supply.
3.13 The extent of risk management required will vary depending on the likelihood of
these risks occurring and their potential impact. Agencies should have regard to
the principles outlined in Comcover’s Risk Management Better Practice Guide 6 and
the options available under the Comcover Insurance Policy. 7
Internal procedures
3.14 Agencies should establish internal procedures to facilitate effective property
planning and management. Internal procedures can be included in an agency’s
Chief Executive’s Instructions or Operational Guidelines and be referenced in the
property management plans. The property management planning procedures
should reflect the nature of the agency and its property needs, and may include
processes for:
• seeking input, drafting, approving and implementing the property
management plan;
• reviewing and updating the property management plan;
• formal communication mechanisms to coordinate property management
activities within the agency, including scheduled meetings with senior
executives in key functional areas such as human resources, information
technology, procurement, legal and corporate;
• formal communication mechanisms to coordinate property solutions across
the portfolio or with other agencies; and
• maintaining accurate and up-to-date property records.
6 Available at www.finance.gov.au. Comcover is the Australian Government’s general insurance
fund that provides insurance and risk management services to Australian Government
departments and agencies.
7 Available at www.finance.gov.au.
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Better practice property management
planning
Property management plan coordinator
3.15 Agencies may wish to appoint a property management plan coordinator to
promote a coordinated approach to property planning across the agency.
The coordinator’s responsibilities may include collating information, drafting
the property management plan, submitting the property management plan
for approval, advising relevant officers of their assigned responsibilities and
managing reviews and updates.
Sources of information
3.16 Information for inclusion in the property management plan will need to be
gathered from a number of sources. These could include:
• property managers;
• corporate services managers (including facilities management, human
resources, legal and information technology);
• relevant senior managers;
• the Chief Financial Officer and associated group;
• landlords and outsourced service providers;
• lease agreements;
• relevant Government policy documents;
• planning and reporting documents such as staff surveys, corporate or business
plans, portfolio budget statements, portfolio additional estimates statements
and annual reports; and
• market information from property and real estate associations’ reports or
publications.
Record keeping
3.17 It is good practice to maintain records of the research and consultations
undertaken when developing the property management plan. These records will:
• provide an account of how the property management plan was developed;
• document any decisions made relating to the property management plan and
evidence the reasoning;
• if it is not possible to meet the Government’s occupational density target in a
particular tenancy (e.g. if the building design precludes a fit-out which enables
the target to be met), record the reason why the density cannot be met and
the approach taken to ensure the occupational density for that tenancy is as
efficient as possible; and
• assist with developing and updating the property management plan in future
years.

Better practice property management
planning
Accommodation manual
3.18 In addition to the property management plan, agencies may develop a
complementary internal policy and procedural document to assist officials
involved in the delivery of day-to-day property management activities (hereafter
referred to as the ‘accommodation manual’). The need for an accommodation
manual will depend on the size and complexity of an agency’s property
management function.
3.19 An accommodation manual should complement the agency’s property
management plan but would normally be more prescriptive in nature. An
accommodation manual would normally outline the property management and
occupancy requirements of the agency. For example, it may include advice on:
• office and workstation configurations, including design illustrations, colour
schemes, furniture requirements and fit-out specifications for particular work
functions;
• security considerations, including for off-site document storage, data centres
and co-location or sharing of facilities with other agencies;
• provision and location of special function rooms, such as meeting, conference,
interview, training and sick rooms;
• description of the fit-out process, who is responsible and who to consult;
• processes for reviewing property-related service contracts, including service
delivery standards, to assess their effectiveness and to identify areas for
improvement;
• processes for managing and monitoring the performance of property-related
service providers;
• maintaining accurate and up-to-date records of leases and other information
associated with the properties;
• occupational health and safety considerations;
• workplace practices, such as procedures for booking/using meeting rooms or
other shared facilities;
• building user/tenant guides;
• Green Lease Schedule requirements for energy management plans, building
management committee, etc;
• building and accommodation environmental management systems (EMS) and
plans where applicable; and
• heritage management plans.
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4
Structure of a property
management plan

18
4
Structure of a property management
plan
4.1 A possible structure for a property management plan is provided below and
it can be used as a template. An agency should assess the usefulness and
appropriateness of the proposed structure and associated content for its internal
audience, including the templates provided at Appendix B and C, before including
it in its property management plan.
Structure of a property management plan
(a) Executive summary
(b) Introduction
(c) Existing property portfolio and performance:
• identification of the existing property portfolio resources (including any
approved projects); and
• account of the performance of each property (using relevant indicators).
(d) Existing and future property needs:
• identification of the agency’s existing property needs taking into consideration
the objectives and function of the agency; and
• outline of the agency’s anticipated future property needs taking into
consideration the objectives and function of the agency.
(e) Risk assessment:
• identification of the significant risks relating to the property portfolio and an
outline of the associated mitigation strategies;
• assessment of the capacity of the existing property portfolio to respond to
business continuity incidents; and
• assessment of the appropriate level of cover/suitable level of cover under the
Comcover insurance policy.
(f) Gap analysis and performance assessments:
• assessment of the existing property portfolio against the existing and future
property needs;
• identification of the level of desired property management performance
targets set by the agency in terms of its own performance aspirations, and
relevant targets set by the Government such as the occupational density
target;
• assessment of the existing property portfolio against any performance targets,
including the occupational density target; and
• identification of opportunities and strategies to improve property outcomes.

Structure of a property management
plan
(g) Actions / Outcomes:
• overview of the strategies to be implemented (including any risks and
mitigating strategies); and
• outline of how the strategies will be implemented (including resource needs
and constraints).
(h) Responsibility and accountability:
• outline of the area of the agency that is responsible and accountable for the
implementation of the opportunities and strategies; and
• outline of the frequency and/or triggers for reviews, updates and the approval
process.
(a) Executive summary
(Guide: maximum one page)
4.2 The executive summary should provide a high level overview of the information
contained within the property management plan and may be designed to be read
without the accompanying sections.
4.3 In this section, it may be useful to include:
• a statement about the purpose of the property management plan;
• the time period that the property management plan covers and the timing of
the next review;
• a high level summary of the agency’s property portfolio e.g. aggregate details,
including locations and tenancy areas by State, in tabular form where useful;
• the overarching property management strategies and goals;
• a summary of the assessments undertaken;
• an outline of the consultation and approval processes; and
• a statement of the risks and opportunities considered as part of the agency’s
property management strategy.
(b) Introduction
(Guide: maximum one page)
4.4 The introduction should outline the role of property in meeting the objectives of
the agency. The introduction should help to establish the context in which the
property management plan has been developed.
4.5 In this section, it may be useful to include:
• an outline of the agency’s objectives and principle activities;
• a statement of the importance of property management to the operation and
performance of the agency;
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Structure of a property management
plan
• a statement about the agency’s property management priorities, projects and
budget constraints;
• brief commentary on the compliance of the property portfolio with
Government policy or legislative requirements and relevant industry
standards; and
• a statement that demonstrates the agency’s commitment to implementing
the property management plan.
4.6 Information included in the property management plan should be consistent
with other relevant publicly available documents and the agency’s strategic
plans. Most of the information required to outline the activities and objectives of
the agency can be found in corporate or business plans, budget statements and
annual reports.
4.7 When outlining the objectives and principal activities of the agency, it would be
useful to address the requirements of being in a specific location for the delivery
of services (e.g. whether the agency needs to be in a central business district or
other major activity node within a city’s metropolitan area, a major retail area,
rural/remote areas or a combination thereof). It may also be useful to address any
expected changes in future activities (e.g. as a result of new policy proposals or
significant restructures) and any associated impacts on the property requirements
of the agency and key stakeholders (e.g. agency staff and the public).
4.8 A statement about the agency’s general property management priorities,
strategies or goals and any budget constraints should help to inform the Chief
Executive (or an official authorised by the Chief Executive) of the context in which
the decisions or commitments contained within the property management
plan were made. For example, priorities and strategies for agencies with more
frequently changing property needs may include shorter term leases with more
flexible provisions, and allowance for and management of comparatively higher
vacancy rates and office churn. In contrast, agencies with more stable property
needs may opt for longer term leases and life cycle management programs.
4.9 Brief commentary in relation to compliance of the agency’s property
arrangements with Government policy requirements and the ability to meet
targets or industry standards may also be included. For example, maintaining a
certain NABERS Energy rating and planning specifically to meet the occupational
density target would be useful.
(c) Existing property portfolio and performance
(Guide: maximum two pages plus tables)
4.10 The aim of this section is to provide a complete account of the existing property
portfolio and the performance of each property.

Structure of a property management
plan
Account of the existing property portfolio
4.11 In this section, it may be useful to:
• provide a description and inventory of the existing property portfolio, including
any ongoing projects that affect it; and
• record the details of the existing property portfolio, including: specific lease
information; area occupied; staff accommodated; location; and costs.
– Refer to the ‘Property details’ table in the ‘Property profile - better practice
templates’ at Appendix B for a suggested format. Where useful, the profile
of existing properties could be used to generate a graph listing properties
by lease expiry (grouped by property type, location etc) in order to help
inform the timing of future property decisions.
Account of the performance of each property
4.12 In this section, it may be useful to:
• provide a description of the existing property portfolio’s performance (against
relevant indicators); and
• record details of the performance of each property within the portfolio,
including: property utilisation; density levels; costs; work practices; and
environmental performance.
– Refer to the ‘Property performance’ table in the ‘Property profile - better
practice templates’ at Appendix B for a suggested format.
(d) Existing and future property needs
(Guide: maximum two pages)
4.13 The aim of this section is to provide an account of the existing and future property
needs of the agency (including short and longer-term needs).
Account of the existing property needs
4.14 In this section, it may be useful to:
• outline the existing property needs of the agency taking into account the
objectives and function of the agency;
• provide a description of the existing property needs with respect to the
following factors: location of properties; amount of space; staff numbers and
capacity; building functionality; building or fit-out requirements; any related
capital expenditure; operating costs (e.g. lease, utilities); and funding issues;
and
• specify who was consulted in compiling the information and any caveats that
apply to the information or estimates.
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Structure of a property management
plan
Account of the future property needs
4.15 In this section, it may be useful to:
• outline the anticipated future property needs of the agency, taking into
account the objectives, function and future direction of the agency;
• describe the future property needs with respect to the following factors:
location; amount of space; staff numbers and capacity; building functionality;
building or fit-out requirements; capital expenditure; operating costs; and
funding issues; and
• specify who was consulted in compiling the information and any caveats that
apply to the information or estimates.
(e) Risk assessment
(Guide: maximum two pages)
4.16 The aim of this section is to identify the risks associated with the property
portfolio not meeting the current and future needs of the agency and any
mitigating strategies.
4.17 In this section, it may be useful to:
• develop a risk management plan that allocates responsibility to a senior
manager for managing and reporting on the risks identified in an agency’s
property management plan;
• undertake a risk assessment that considers an agency’s appetite for managing
risk in relation to its property assets. Careful consideration needs to be given to
the use of these assets at both the minimum and maximum levels; and
• check the agency’s Comcover insurance policy to ensure it provides an
appropriate level of cover to insure not only the agency’s property assets, but
also the impact of business interruption.
(f) Gap analysis and performance assessments
(Guide: maximum three pages plus tables)
4.18 The aim of this section is to compare the existing property portfolio against the
short to longer-term property needs of the agency and to provide an assessment
of the existing property against relevant performance goals and targets. This
section will essentially be a ‘gap analysis’ that identifies areas for improved
property outcomes.

Structure of a property management
plan
Assessment of the existing property portfolio against the existing and future
property needs
4.19 In this section, it may be useful to:
• provide an assessment of the agency’s existing property portfolio against
existing and future needs (see sections 4(c) and 4(d) of the Planning
Guidance); and
• record and reference the details for those factors that are quantifiable (e.g.
amount of space) in an appendix – such as the ‘Gap analysis - better practice
templates’ at Appendix C.
Assessment of the existing portfolio against any relevant performance goals
and targets
4.20 In this section, it may be useful to:
• provide an assessment of the property portfolio against any targets, including
the Property Guidelines’ occupational density target and environmental
indicators; and
• compare the performance details recorded at Appendix B against the relevant
targets.
Identification of opportunities and strategies to improve property outcomes
4.21 In this section, it may be useful to:
• identify potential areas to improve property efficiency, effectiveness and
alignment with the agency’s current and future needs. These may relate to:
– the location of properties;
– the amount of space;
– the utilisation of space, including the use of data centres and the storage of
records at an external location;
– building functionality;
– fit-out density and quality;
– costs;
– relevant market conditions e.g. availability of desired office space; and
– the potential to collaborate with other agencies.
4
23

24
4
Structure of a property management
plan
(g) Actions / Outcomes
(Guide: maximum three pages)
4.22 The aim of this section is to specify which of the opportunities or strategies
identified in the gap analysis will be pursued and to outline how they will be
implemented.
Outline of the strategies to be implemented
4.23 In this section, it may be useful to:
• outline which opportunities, changes or strategies the agency will pursue,
including any strategies and projects that have previously been approved by
the Chief Executive (or an official authorised by the Chief Executive) and are
being implemented within the period covered by the property management
plan;
• outline any constraints, including funding issues and internal and external
dependencies in relation to maximising opportunities; and
• identify any risks or challenges associated with the strategies and any
mitigating actions.
4.24 If developed, an accommodation manual may include information relevant to the
implementation of identified opportunities or strategies. Where this is the case,
it may be useful to link relevant internal accommodation manual requirements
to the strategy. The strategies or opportunities identified in this section may also
result in a need to change or update the accommodation manual to reflect any
new internal requirements.
Outline of how the strategies will be implemented
4.25 In this section, it may be useful to:
• detail how the opportunities or strategies to be pursued will be implemented
and the progress of any actions currently underway e.g. how to consolidate
properties, capitalise on subletting opportunities for excess space and deliver
on acquisition/disposal programs;
• identify what the implementation of strategies will involve e.g. funding, capital
expenditure, internal resources, consultation, approvals and timeframes; and
• explain how any changes will be managed within the agency, including
communication and employee consultation strategies.

Structure of a property management
plan
(h) Responsibility and accountability
(Guide: maximum one page)
4.26 The aim of this section is to outline internal responsibility and accountability
for the strategies and change programs identified in the property management
plan that are to be pursued by the agency. This section may also outline who is
responsible for the development, approval, execution and review of the property
management plan.
Outline of the areas of the agency responsible for the implementation of the strategies
4.27 In this section, it may be useful to:
• identify which areas of the agency are responsible for the implementation
of the proposed strategies and the specific projects listed in the plan;
• outline the ongoing maintenance requirements of the agency’s property; and
• specify, where relevant, any responsibilities of outsourced service providers
or external stakeholders.
Outline of the frequency and/or triggers for reviews, updates and approval of the
Property Management Plan
4.28 In this section, it may be useful to:
• state the frequency of reviews and an explanation of the timing;
• specify any triggers for reviews and updates;
• outline the approval process; and
• note the internal consultation undertaken in the development or review
of the property management plan.
4
25

Appendices

28
A
Glossary
The following definitions apply for the purposes of the Planning Guidance.
Term Explanation
Accommodation manual An internal policy or procedural document to assist
officials involved in the delivery of day-to-day
property management. An accommodation manual
would normally outline the operational property
management requirements of the agency.
Australian Government Property
Data Collection (PRODAC)
PRODAC assists agencies to identify better practice
and inform whole-of-Government property
management policy. It provides a central database
on the office space leased and owned by the
Government.
Occupied workpoint A workpoint that contains all ‘essential equipment’
for carrying out office work, shows ‘signs of life’ and
could reasonably be assumed to be a place where
office work is regularly undertaken.
Office – Central Services
(Base Building)
Office – Tenant Light and Power
(Tenancy)
The energy used to power the heating, ventilation
and air-conditioning (HVAC) systems, lifts, hot
water for showers, toilets, security and common
area lighting. It is commonly the responsibility of
the building owner or manager, although in some
leases, expenses for this energy use are on-charged
to tenants based on the amount of area they occupy.
The energy source for Central Services/Base Building
energy use is usually mostly electricity, but can also
be gas (e.g. in water heating).
The energy used to power lighting and office
equipment, including ICT equipment and appliances,
water boiling units and any supplementary (local)
air conditioning units. It is referred to as tenant
energy use because in most commercial office lease
arrangements each tenant in a building is billed
separately by the utility provider for their energy
use. Many buildings have a separate billing meter
for this energy use so it does not get confused with
other energy use in the building. The energy source
for Tenancy/Tenant Light and Power is normally only
electricity.
Office churn The relocation of people within a building.
Operational guidelines Outlines an agency’s processes and procedures that
officials are to follow when carrying out certain
duties.

Property management plan
coordinator
Glossary
An official(s) responsible for coordinating the
agency’s property management plan.
Workpoint A desk, an enclosed office or a section of a counter or
reception at which it would be reasonable to expect
one person to carry out office work on an ongoing
basis.
A
29

30
B
B1 Property details
Current property details Lease Costs
Property profile – better practice
templates
Total
property
costs
(p.a)
Other
property
costs
(p.a)
Rent
type:
Gross
or Net
Rent
(p.a)
Other
Lease
Details
**
Option
Details
End
date
Start
date
Fit-out:
Remainder
of useful life
(years)
Occupied
workpoints
(OWP)
Total
workpoints
(WP)
Type* Area
(m2 )
Location Lease No. Owned
/ Leased
* Examples: office, data centre, laboratory
** Examples: ratchet clauses, free rent periods
Environmental
B2 Property performance *
Property utilisation Costs Work
practices
NABERS
Energy
Rating
(stars)
Tenancy
and Base
Building
Energy:
MJ /
OWP
(p.a)
Tenancy
Energy:
MJ / m2 (p.a)
Base
Building
Desk sharing
or formal
work from
home (%)
Total property
costs / Total
operating
costs (%)
Total
property
costs /
OWP
(p.a)
Total
property
costs /
m2 (p.a)
Other
property
operating
costs / m2 (p.a)
Rent/m2 (p.a)
Property m2 / WP m2 / OWP WP Vacancy
(%)
* A description of these indicators is provided in the table at paragraph 3.5 of this Planning Guidance.

Gap analysis – better practice template C
Longterm:
>5yrs
Property
Workpoints Space (m
details
2 ) Budget Costs *
Property Current ShortMediumLong- Current ShortMediumLong- Current ShortMediumLong- Current ShortMediumterm:term:term:term:term:term:term:term:term:term:term: 1–2 3–5 >5yrs
1–2 3–5 >5yrs
1–2 3–5 >5yrs
1–2 3–5
years years
years years
years years
years years
* Possible cost inclusions: rent; energy; repair and maintenance; cleaning; car parking; and other costs.
31

18
FMG