❓ Mr. Wyatt requests details on state government leased buildings, costs, expiry dates, and renewal intentions. The Minister provides portfolio-level information, citing a new master planning approach for office accommodation and offers detailed advice privately to avoid disadvantaging future lease negotiations.
AnsweredQoN 4198Legislative Assembly
QuestionView source ↗
(1) Which buildings are currently leased by the State Government?
(2) What is the total annual cost of each leased building to the State Government?
(3) What is the date of expiry for each lease on each building leased by the State Government?
(4) For each building, does the Government intend to renew the lease when the current lease expires?
(5) Does the Government anticipate vacating any building currently leased by the State Government before the expiry of the lease; and
(a) if so, which buildings?
(2) What is the total annual cost of each leased building to the State Government?
(3) What is the date of expiry for each lease on each building leased by the State Government?
(4) For each building, does the Government intend to renew the lease when the current lease expires?
(5) Does the Government anticipate vacating any building currently leased by the State Government before the expiry of the lease; and
(a) if so, which buildings?
AnswerView source ↗
Answered
18 November 2010
Responded by
Minister for Minister Assisting the Treasurer
Response time
30 days
The following answer covers office accommodation leases managed by the Building Management and Works (BMW) business of the Department of Treasury and Finance. BMW manages the majority of office accommodation leases occupied by General Government Sector agencies.
Responses to the Member's part questions have been provided from a Government office accommodation "portfolio" perspective. I am happy to personally provide the Member with the detailed advice he is seeking at an individual lease level, but would not want the information to be made public, as it could potentially disadvantage the State in future lease negotiations.
(1) BMW manages a State-wide portfolio of about 475 individual leases spread across some 370 buildings. The number of leases, and buildings, is largely a result of incremental agency accommodation growth over many years. This unco-ordinated approach to Government office accommodation has resulted in many agencies having business units spread across numerous buildings.
Under a new "master planning" approach, Government office accommodation will progressively be aggregated and consolidated into fewer buildings and leases. This will provide the flexibility to accommodate individual agency growth and restructuring. It will also facilitate the collocation of agencies within the same building, enhance agency collaboration and rationalise resource use through shared common facilities and resources.
Importantly, it has the potential to improve community access to Government service delivery.
(2) The current total annual cost of office accommodation leases is in the order of $175 million.
(3) The expiry date, or next lease extension option date, of individual leases vary from one month (for leases on a month-by-month tenancy lease commitment) out to mid 2020.
(4) As a general rule, consideration of lease extensions commences about 18 to 24 months prior to a lease extension option or lease expiry date.
Factors taken into consideration in making extension decisions include the business needs of the occupying agency, the physical condition and amenity of the building, and broader Government office accommodation master planning issues (e.g. decentralising some Government office accommodation from the Perth central business district, and aggregation and consolidation of office space).
A 2011-2015 Government Office Accommodation Implementation Plan is currently being developed, from which decisions on renewal of current leases will be made.
(5) Implementation of Government office accommodation master planning will require aligning the termination of some existing office leases with the procurement and fitout of new office accommodation. This will be achieved through negotiation with existing lessors (building owners).
There may be occasions in which full alignment cannot be achieved, which may result in short-term vacant space.
As a current case in point, the lease on GovernorStirlingTowerexpires in June 2012. Agencies currently accommodated in the building will progressively relocate to new office accommodation over the period June 2011 to May 2012. This will result in some vacant space within the building prior to lease expiry.
(a) As noted in (4) and (5), a 2011-2015 Government Office Accommodation Implementation Plan is currently being developed. It is not possible to determine which buildings, if any, may be vacated prior to the expiry of the lease.
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Responses to the Member's part questions have been provided from a Government office accommodation "portfolio" perspective. I am happy to personally provide the Member with the detailed advice he is seeking at an individual lease level, but would not want the information to be made public, as it could potentially disadvantage the State in future lease negotiations.
(1) BMW manages a State-wide portfolio of about 475 individual leases spread across some 370 buildings. The number of leases, and buildings, is largely a result of incremental agency accommodation growth over many years. This unco-ordinated approach to Government office accommodation has resulted in many agencies having business units spread across numerous buildings.
Under a new "master planning" approach, Government office accommodation will progressively be aggregated and consolidated into fewer buildings and leases. This will provide the flexibility to accommodate individual agency growth and restructuring. It will also facilitate the collocation of agencies within the same building, enhance agency collaboration and rationalise resource use through shared common facilities and resources.
Importantly, it has the potential to improve community access to Government service delivery.
(2) The current total annual cost of office accommodation leases is in the order of $175 million.
(3) The expiry date, or next lease extension option date, of individual leases vary from one month (for leases on a month-by-month tenancy lease commitment) out to mid 2020.
(4) As a general rule, consideration of lease extensions commences about 18 to 24 months prior to a lease extension option or lease expiry date.
Factors taken into consideration in making extension decisions include the business needs of the occupying agency, the physical condition and amenity of the building, and broader Government office accommodation master planning issues (e.g. decentralising some Government office accommodation from the Perth central business district, and aggregation and consolidation of office space).
A 2011-2015 Government Office Accommodation Implementation Plan is currently being developed, from which decisions on renewal of current leases will be made.
(5) Implementation of Government office accommodation master planning will require aligning the termination of some existing office leases with the procurement and fitout of new office accommodation. This will be achieved through negotiation with existing lessors (building owners).
There may be occasions in which full alignment cannot be achieved, which may result in short-term vacant space.
As a current case in point, the lease on GovernorStirlingTowerexpires in June 2012. Agencies currently accommodated in the building will progressively relocate to new office accommodation over the period June 2011 to May 2012. This will result in some vacant space within the building prior to lease expiry.
(a) As noted in (4) and (5), a 2011-2015 Government Office Accommodation Implementation Plan is currently being developed. It is not possible to determine which buildings, if any, may be vacated prior to the expiry of the lease.
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
http://www.rtlib.com
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