ESTATE STRATEGIES Why estate strategies are critical to the public sector’s future

Maddie Chelsom

Maddie is an Associate within the Public Sector Advisory team at Knight Frank, bringing six years of experience in strategic consultancy for public sector organisations. She specialises in strategic asset management, portfolio reviews, and asset realisation, with a strong track record of supporting clients to optimise estate performance and maximise value.  She has advised local authorities, blue light organisations, and NHS trusts on the development of efficient, sustainable estate strategies. As an accredited CIPFA Business Case professional, Maddie has extensive expertise in preparing robust business cases and estate strategies that enable informed investment and development decisions

Maddie’s article complements Richard and Laura’s presentations at ACES National Conference. “Estate strategies are no longer 'nice to have'; they are strategic imperatives for any public sector organisation seeking to deliver modern, resilient, and impactful services.” She outlines what a good strategy looks like. 

In an era of mounting budgetary pressures, evolving service delivery models, decarbonisation targets, and heightened public expectations, the role of public estates is under intense scrutiny. Estate strategies are no longer optional extras; they are essential tools for steering organisations through complex, uncertain terrain. 

At Knight Frank, we work closely with public sector bodies across local and central government, NHS trusts, and blue light services. One constant across all these sectors is the increasing realisation that a well-considered estate strategy isn't just about buildings, it's about enabling transformational service delivery, unlocking social value, and future-proofing operations. 

As an advisor embedded in the public sector advisory space, I've seen first-hand how transformative estate strategies can be when they are truly aligned to organisational goals, responsive to societal needs, and backed by robust data. In this piece, I want to unpack why estate strategies matter, what a good strategy looks like, and how public bodies can harness them to make real impact. 

Why now? The drivers for estate strategy renewal 

Financial pressures and efficiencies 

Public sector organisations face significant financial constraints, whether from funding cuts, inflationary pressures, or legacy operational costs. Estate portfolios are often one of the largest items on balance sheets and represent a major opportunity to deliver both savings and value. 

A well-crafted estate strategy empowers organisations to identify underutilised assets, rationalise space, drive down maintenance costs, and make informed investment or disposal decisions. But importantly, this isn't about divesting for the sake of it; it's about reshaping the estate to better support services, generate income where appropriate, and reduce inefficiency. 

For example, we have recently supported a public sector organisation to shape a strategic masterplan, and as a result, helped to secure over £500m of funding for the next 10 years to implement the strategy. This funding enables investment in the estate to ensure it is ‘fit for the future’ operational requirements, alongside generating significant annual revenue savings through the elimination of c.£250,000 of annual backlog maintenance spend. 

Service transformation 

The way public services are delivered is changing. Whether it's the integration of health and social care or community policing models, estates must evolve in tandem for these services to be delivered effectively. Estate strategies serve as enablers of service transformation, aligning space and place with new operating models, workforce trends, and user needs. 

Take the NHS for example. As Integrated Care systems become more embedded, estates need to reflect new models of collaborative, preventative, and place-based care. Without a clear estate strategy, organisations risk having assets that are at odds with their service ambitions. 

Climate commitments 

Net Zero is no longer a distant aspiration: it's a policy and operational imperative. The public estate is a critical lever for meeting climate goals, given that buildings account for around 40% of the UK's carbon emissions. 

An estate strategy provides a framework for decarbonisation planning, enabling asset-level energy efficiency interventions, renewables integration, and long-term retrofit roadmaps. Crucially, these plans need to be viable, fundable, and phased for delivery. 

A prime example of this is when we delivered end-to-end consultancy on two rooftop PV schemes (332kWp) at Kingsland Trading Estate in Bristol for Knight Frank Investment Management. The systems cut grid dependence, deliver significant occupier savings through a Power Purchase Agreement, and reduce scope 2 emissions, helping to decarbonise the site. 

Place leadership 

Public sector bodies are increasingly being asked to act as place leaders, not just service deliverers. Whether through local authority-led regeneration, town centre revitalisation, or affordable housing delivery, estates are a key tool in realising place-based outcomes. 

Furthermore, estate strategies offer a mechanism to align organisational priorities with broader socio-economic goals, be that employment generation, improved accessibility, or cultural revitalisation. When done well, they position the public estate as a catalyst for growth and inclusion, not just a cost centre. 

So, what makes a good estate strategy? 

A truly effective estate strategy is more than a set of asset maps or high-level statements; it's a comprehensive, evidence-based, and actionable document that connects estates to an organisation's purpose, performance, and people. Based on my experience, there are several critical success factors: 

Strategic alignment 

The strategy must be rooted in organisational vision and service priorities. It should reflect the medium and long-term direction of travel, not just estate issues in isolation. For example, if a council is focused on digital inclusion or community wealth-building, the estate should be a means of delivering on those ambitions. 

Data-driven insight 

Robust data is the foundation of any credible estate strategy. This includes asset condition, utilisation rates, operational costs, compliance status, environmental performance, and spatial demand forecasts. Without this evidence base, strategic decisions risk becoming ineffective and counter-productive. 

We help our clients turn raw estate data into actionable insights using our in-house tools and geospatial analysis, highlighting patterns, gaps, and opportunities that may not be obvious on paper. The foundation of all our estate strategy work is the collation of robust, evidence-based data captured in our proprietary ACE analytics portfolio. 

Stakeholder engagement 

Buy-in is essential to a strategy's success, both within the organisation and with external partners. Estate strategies must reflect the needs of service leads, staff, partners, and communities. Their input ensures the strategy is practical, understood, and owned by those responsible for delivering it. 

We advocate structured engagement from the outset, using ‘Voice of the Customer’ workshops, interviews, and co-design sessions to capture both qualitative and quantitative insights. For a recent public sector client, we engaged 15 service heads and ran over 30 workshops and interviews, building a clear picture of current and emerging priorities. This ensured the estate strategy addressed today’s needs, while remaining resilient and adaptable for the future. 

Financial modelling and risk analysis 

Any strategy must address the question: "What will it cost, and what will it save?". Financial modelling, including capital investment needs, lifecycle costs, and scenario planning, is vital to demonstrate affordability, value for money, and resilience. 

Beyond the numbers, strategies must also assess implementation risks, from planning constraints to workforce impacts, and outline mitigation measures. 

Take a recent project with a council for example – it had recently undergone Local Government Reorganisation; so we carried out a strategic review and a full utilisation study, engaging local students to complete the workplace visits. This work generated a range of options for its office accommodation. To understand the full implications of each, we undertook detailed financial modelling and scenario testing to ensure value for money. The options were then assessed against strategic priorities and critical success factors, enabling the council to identify the optimal solution. 

Deliverability and governance 

Too often, estate strategies sit on the shelf while organisations deal with 'Business as Usual' activities. We focus on deliverability: clear actions, phasing plans, accountability structures, and resourcing requirements. Governance mechanisms must be defined to ensure ongoing oversight, adaptation, and alignment with organisational change. 

All strategic capital investments should be supported by robust business cases aligned to HM Treasury Green Book principles. Our accredited business case practitioners ensure all decisions are based on Value for Money and strategic objectives. 

Making the case internally: Getting senior buy-in 

One of the most common barriers to estate strategy adoption is lack of internal traction. Often, estates are seen as 'behind the scenes' functions, a step removed from strategic planning. 

We encourage public sector leaders to frame their estates as enablers of outcomes, not just overheads. By positioning the estate strategy alongside service transformation, climate commitments, and financial resilience, leaders can elevate its status and secure necessary buy-in. 

It's crucial to tailor the messaging: for chief finance officers to focus on returns on investment and savings; for service directors, highlight alignment with operational models; for sustainability leads, demonstrate carbon savings; and for elected members or boards, show how the estate supports local aspirations and community needs. 

The future of estate strategy: Trends to watch 

Looking ahead, several key trends will shape the evolution of estate strategies across the public sector: 

Data integration and smart estates 

Technology is transforming how we manage estates, from Internet of Things sensors, to AI-driven maintenance planning. Estate strategies will increasingly leverage real-time data, predictive analytics, and digital twins to inform decision-making. 

Integrated public service hubs 

We anticipate a rise in co-located, multi-agency facilities that bring services together under one roof, improving user access, reducing duplication, and enhancing collaboration. Estate strategies will be central to designing, funding, and delivering these models. 

Having been involved in numerous co-location schemes with local government, blue light, NHS and private partners, I've seen first-hand how these collaborations improve service delivery and create more efficient, responsive, and people-focused services. 

Agile and hybrid workspaces 

Post-pandemic shifts in working patterns are here to stay. Public sector employers are rethinking office needs, focusing on collaboration zones, touchdown space, and digital connectivity. Estate strategies must adapt to this new normal, balancing flexibility with cost and culture. 

Climate adaptation 

Beyond just reducing emissions, estates need to prepare for the real impacts of climate change, like flooding and overheating. This means planning for resilience, especially around vital infrastructure and vulnerable communities. 

Frameworks like the EU Taxonomy support this by encouraging smart design solutions to manage risk, improve comfort, and meet compliance standards like Carbon Risk Real Estate Monitor and the Task Force on Climate-related Financial Disclosures, making buildings more resilient and compliant in the long run. 

Social value and inclusion 

Public estates hold great potential to create positive social impact. It’s essential that strategies focus on equity, diversity, and accessibility to ensure these spaces foster inclusive growth, create local jobs, and build stronger communities. 

For example, in partnership with a London Borough, Knight Frank is using its Social Needs Snapshot tool to develop a tailored social value plan for a major residential project. This data-driven approach helps align efforts with local priorities, addressing real community needs and delivering clear, lasting benefits. For instance, mapping out areas in most need of support. This may include identifying schools, neighbourhoods, and populations facing barriers to employment, health, and education. 

Estate strategy as a strategic imperative 

Estate strategies are no longer 'nice to have'; they are strategic imperatives for any public sector organisation seeking to deliver modern, resilient, and impactful services. By grounding strategies in evidence, aligning them with mission, and focusing on deliverability, public bodies can unlock significant value: not just financial, but social, environmental, and organisational. 

At Knight Frank, we are proud to support the public sector in this journey. We believe in the power of place to shape service outcomes, and that smart estate strategies are key to unlocking that potential. Whether you're at the start of your estate strategy journey or looking to refresh an outdated plan, our Public Sector Advisory team is here to help.