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There are two principal elements to consider in relation to the strategic management of any organisation's surplus property. The first is the process by which the property is identified and declared surplus and the second is the procedure for managing such property effectively until disposal finally takes place. This paper is based on the research undertaken to consider: the key characteristics of good “strategic” management of surplus property; how other bodies (private and public) have improved their strategic management of surplus properties in the recent past; how the proposals in “Sold on Health” appear to meet good practice; and any lessons that can be learnt by the National Health Service from this work.

Some companies see property as a strategic resource that can add value to corporate performance; others view it as a commodity that more often acts as a barrier to core business activities. In both instances, insufficient forward planning often prevents companies from making the most of their property portfolios and avoiding unnecessary costs. This paper looks at how operational property portfolios can be classified according to their strategic significance to the business and, specifically, how occupiers can more closely align property holdings with core business objectives by differentiating between ‘core’, ‘tactical’ and ‘(semi)surplus’ properties. The paper focuses specifically on the topical issue of flexibility, identifying potential costs and considering whether and to what extent short leases and break clauses are worth paying for. It also contains a large number of practical tips for managing real estate liabilities and making assets perform better.

Adopts the label “tenanted non‐residential property” (TNRP) rather than employ loaded terms such as “commercial” or “investment”. Deals with the perceived objectives for which local authorities hold TNRP and the functional, financial and legal setting. Compares category bases for property holdings and, in particular, examines attitudes to acquisition, management, retention and disposal of TNRP. Notes the confusion between investment and indirect service objectives and the consequential expected returns. Discusses the findings of a survey of councils centring on the characteristics and management of their TNRP holdings. Concludes that objectives and management strategy for local authority‐owned TNRP remain undeveloped. Suggests that the ability to properly manage and develop a real investment portfolio may be ultra vires. Recommends, in the shorter term, if not ultra vires, dividing TNRP between those held primarily for indirect service and those held primarily as financial investments. Expects, however, in the longer term, pressures from local service needs and central government will encourage, indeed force, the progressive disposal of all non‐operational property, including TNRP. Identifies a new form of TNRP, one within the council. Seeks to clarify and effect the different strategies for operational property between the centralized corporate council landlord and decentralized service tenants, and proposes the creation of “internal leases”.

U.S. state governments own a large array of fixed assets and lease a great number of parcels of private real properties for public uses. The purpose of this paper is to explore the public asset management system of the U.S. state governments. First, this paper analyzes the major, current public asset management systems and the public procurement systems created by the Organization for Economic Co-operation and Development and the U.S. Government Accountability Office. Based on the analysis, this paper constructs a comprehensive public asset management system that consists of six cornerstones. Second, this paper verifies the comprehensive public asset management system using the data collected from thirty-seven surveyed state governments. The data analysis demonstrates that the comprehensive public asset management system is supported. However, each cornerstone of the comprehensive public asset management system presents different strengths. Third, this paper suggests that further research may delve into particular areas of capital asset management at the state government level to identify critical issues and to provide appropriate resolutions.

Aims to alert members of the surveying professions to the potential weaknesses of property company accounts. Discusses the valuation of investments, the disposal of investment properties, capitalization of interest and off‐balance‐sheet finance. Examines the implications of poor property company financial reporting for the surveying professions. Concludes that a distrust of both internal and external valuations should be of considerable concern to the surveying profession.

The process of privatization of state industries and utilities was a major feature of Government activity and the UK economy during the 1980s. Privatization was achieved in a number of ways and the treatment of land and property aspects varied. Traces the inconsistency of approach by Government departments and examines relevant valuation issues.

Examines property acquisition/disposal decisions of UK retailers within the context of the financial objectives of the firm. Contrasts the financial structure of a “net property disinvestor” with that of a “net property acquirer” using both univariate tests and logistic regression modelling. Evidence is consistent with the growing emphasis that real‐estate strategies (which include acquisition and disposal decisions) should be evaluated at the strategic level of a non‐property company.

The paper examines the development of the financial instruments (land audits, property reviews, information systems, registers and approaches to valuation) required to replace the expenditure‐driven logic of public sector finance with the system of capital accounting in local authorities advocated by the Chartered Institute of Public Finance and Accountancy. The examination draws on the findings of a research project undertaken to survey the steps local authorities have taken to develop the property registers and valuation procedures for such purposes. It highlights the critical role property valuation plays in introducing a system of capital accounting that ensures that the financing of the public sector is not expenditure‐driven, but subject to value‐for‐money tests, and meets the economy and efficiency criteria which this requires.

The purpose of this paper is to look at the problem caused by the operation of break clauses contained in commercial leases – a predominantly UK phenomenon, a consequence of longer lease terms.

The pitfalls that can befall a corporate occupier are numerous and the authors of this paper share some of their recent experiences to highlight issues that can arise and how a Corporate Real Estate Manager or advisor can avoid or minimise those risks.

For corporate occupiers, the operation of a break clause can be fraught with difficulty and its successful implementation requires a strategy to be put in place well in advance of the break date.

The paper shows how turmoil in the wider financial market could make the flexibility that breaks offer very important to certain businesses.

Considers the management of the valuation exercise required of local authorities to enable them to include asset valuations in their balance sheets after 1994. Examines the problems and opportunities which may come with the development of an asset register and asset rents and, in particular, the valuation principles to be employed.