We are targeting completion of up to 30 additional projects and transactions by the end of this financial year, which will reduce the NHS office estate by a further 25,000 square metres saving an additional £22 million.
This case study showcases seven of these projects.
Our office specialists carried out strategic reviews, working with organisations across the NHS Estate, including NHS England, and the respective CSUs and ICBs. The properties were significantly underutilised due to remote and hybrid working practices, and our team sourced alternative, better-suited spaces when opportunities became evident at lease expiries and break options.
Background
The NHS estate goes beyond clinical space, with offices accounting for a significant portion of space and cost. Within NHS Property Services’ portfolio alone, offices account for around 400 holdings, spanning approximately 400,000 square metres and serving multiple NHS bodies.
The COVID-19 pandemic has reshaped office space requirements by accelerating trends such as remote and hybrid working, resulting in underutilisation. As such, many organisations are looking to re-evaluate / downsize their office space or invest in new buildings that can better adapt to a more agile working environment.
Our office specialists, who form part of the NHSPS Estate Strategy team, are well placed to review opportunities both within our own portfolio and across the wider NHS and DHSC estate. Their clear goal is to help deliver fit-for-purpose, workplace environments that enable smarter working, drive estate rationalisation and unlock cost savings. This includes providing expert, end-to-end, workplace strategy/solutions, and transaction management services.
Key NHSPS value-add areas
The challenge
Following NHS England’s review of new ways of working, Fosse House was identified as likely to be significantly underutilised post pandemic. Our office team conducted a strategic review, assessing demand and occupier needs in order to determine a more suitable, alternative space in the area, that would help support smarter working practice.
Solution
Our team
The impact
We helped NHSE optimise and rationalise their footprint. This in turn supported smarter working practices and generated significant savings for the NHS through greater partnering and a better utilised public sector estate.
Challenge
NHSPS held three separate leases on behalf of the stakeholders at St John’s House, all with break options in March 2022. This triggered a strategic review by our office team to explore alternative options. During the stakeholder engagement process, they identified the building was not being utilised efficiently and there was the possibility of rationalisation.
Solution
Our team
The impact
Both stakeholders optimised their office occupations, generating savings for the NHS. M&L CSU’s relocation to County Hall demonstrated public sector partnership working effectively.
Challenge
NHSPS held separate leases on behalf of Herefordshire & Worcestershire ICB at The Coach House and Acton House, all with lease events in January 2021. Herefordshire & Worcestershire ICB also held another lease directly. A strategic review by our office team identified that all three buildings were not being used efficiently,
two were significantly dated and there was the possibility for rationalisation whilst improving the quality of the workplace for the ICB.
Solution
The team
Impact
The ICB moved to its modern, renovated HQ in Worcester with a significantly reduced dilapidations liability. By consolidating and rationalising their office spaces, the ICB saved money for the NHS, while providing a modern and efficient workspace for their colleagues.
Challenge
Our office team undertook a strategic review of the CSU office accommodation at Milton Park to determine their current utilisation of the building in advance of the lease expiry date (April 2022).
The review established that only 20% of the space was being utilised by CSU employees given a large proportion of the workforce was now
working from home in light on more hybrid ways of working post pandemic
Solution
Our team
Impact
The NHS relinquished their interest in a commercial building and generated £500,000 of system savings over a 5-year period.
Challenge
In light of more hybrid ways of working post pandemic, there had been a significant reduction in the utilisation of Lower Marsh by NEL CSU and GSTT. Following a strategic review by NHSPS’ office team, which focused on the occupiers ongoing requirements for the building, a decision was made to exercise the break at Lower Marsh.
However, the Vacant Possession (VP) Break conditions proved challenging to meet and required various NHS functions / external contractors to work together to ensure the break was successfully served.
Solution
Our team
Impact
The onerous VP break conditions were met, and the NHS relinquished their interest in an underutilised office building, generating system savings of around £16 million over a 5-year period.
Challenge
The Clifton House lease expiry date was approaching in September 2022, prompting a full review of options available to NEL CSU who
declared the building surplus to their future requirements.
During the option assessment process (undertaken by the NHSPS office team, NEL CSU informed NHSPS that they were ceasing operation as an organisation in July 2022 (3 months in advance of the lease expiry date) and they required NHSPS’s assistance with coordinating their exit from the building as they were unable to fully resource the exercise
themselves.
Solution
Our team
Impact
NEL CSU successfully vacated Clifton House in advance of the lease expiry date. This generated around £8 million in savings over a 5 year period for the NHS.
Challenge
As a result of the Cabinet Office bringing in tighter restrictions surrounding the renewal of commercial interests across the NHS estate, the CSU were unable to continue with their 6-month
rolling licence at Buckingham Place.
Given the organisation still had a spatial requirement for the High Wycombe area, our office team undertook a holistic review of the public sector estate to assess demand and identify a suitable alterative option. This proved challenging as there were very limited options available within the desired search area.
Solution
Our team
Impact
The CSU and OFT agreeing to a bookable space arrangement generated around £54,000 per year in system savings for the NHS.