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Tussell's new analysis lifts the lid on the public sector market for property management services for the first time. It shows the substantial value of public sector contracts awarded to the UK's top property managers - Cushman & Wakefield, CBRE, GVA Grimley, JLL, Knight Frank and Savills.

Since January 2015, these 'Tier 1' property managers have won 288 awards worth £93M and been listed on 197 frameworks with an estimated value to them of £235M.

Tier 1 Property Managers - Award/Framework Value and Volume
Tier 1 Property Managers - Award/Framework Value and Volume

 

CBRE, the largest real estate services firm in the world, leads the pack based on award value having won £32M of awards in the past 3 years. However, Savills won the largest estimated value of frameworks (essentially preferred suppliers lists) - more than double that of any of its peers. These frameworks offer no guarantee that the reported value will be spent but indicate significant potential for future public sector work*.

Tier 1 Property Managers (since Jan 2015)
Tier 1 Property Managers (since Jan 2015)

 

The Cabinet Office’s 'Estates Professional Services' framework was by far the biggest contract, seeking suppliers to help public bodies reduce property costs and release unwanted property assets. All six Tier 1 property managers were listed on this framework along with 27 other firms.

Tier 1 Property Managers - Top 5 Contracts
Contracting Authority Supplier Contract Title Date Awarded Framework Value
Cabinet Office Multiple Suppliers RM3816 Estates Professional Services. July 2017 Y £111M
Places For People Placemaking Limited Multiple Suppliers Placemaking Hub — Strategic Consultancy. April 2016 Y £33M
Notting Hill Housing Trust Multiple Suppliers Estate Agents Agenct Framework. December 2016 Y £30M
Places For People Placemaking Limited Multiple Suppliers Placemaking Hub — Strategic Managed Services. April 2016 Y £23M
London Borough of Camden Savills A contract for sales and marketing services for residential units. July 2015 N £9M

 

Excluding frameworks, there are £3.6M worth awards currently held by the Tier 1 property managers due to expire by December 2018. Visibility of expiring contracts gives challengers the opportunity to anticipate future tender opportunities and engage with buyers early on.

Tier 1 Property Managers - Expiring Contracts Schedule (Awards Only)
Tier 1 Property Managers - Expiring Contracts Schedule (Awards Only)

Tussell can help you discover trends and opportunities in public procurement. Get in touch to request a demo of Tussell Insight, our online data service

*A framework is an agreement between a contracting authority and supplier(s) establishing the terms of future procurement “call-offs”. The value listed for frameworks is an estimated maximum that could be issued over the lifetime of the agreement and is therefore not guaranteed. Tussell divides the total contract value by the number of suppliers listed on the framework in order to estimate the potential value of the framework to each supplier.

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