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Reduction of costs for the Government is already dominant closing and downsizing, which inevitably leads to a fall in the necessary office space. The Government is also preparing to increase the effectiveness of its property portfolio which includes leased assets directly owned as a cornerstone of the plans to reduce the deficit of the United Kingdom by ￡ 83bn.

Commercial property London firms are bullish about the threat.Not only do they believe the Government will look to retain most of its shareholdings in the capital, but where they exit will redevelopment opportunities in market production limitée.La real strain threatens to be in the regions.

"It is the challenge that the private sector for the past two years," says Matthew Stone, Director of strategy of the occupant to Cushman & Wakefield, who advised Wolseley, materials of construction group cut thousands of jobs at its exit 170 lease liabilities earlier this year.However, if the Government is the predominant occupant area and effectively empty space, it goes to decimate the rental values."

Data on Government property collections are fragmented and inconsistent, but the Office of Government Commerce (OGC) is perhaps the most research extensive and respected State succession.à the end of 2009, it shows that the Government held a 115 m square feet of offices with autour 35pc to London and the Southeast and 12 5pc in the Northwest, the equivalent of 14 gherkins in Manchester.

On the 38pc office space is held at 33pc is owned by the Private Finance Initiative (PFI), 29pc is loué.Le cost of execution of succession is. 47bn ￡ 3 per year and the property belonged to the State are worth ￡ 350bn.

Efforts to make savings and to raise capital is already cours.La last week, David Cameron has written for departments to concentrate on sales of assets and savings, delivering his report on the effectiveness of the public sector, Sir Philip Green course management of its property, Raj moque calling for a centralized organization.

Involving the pattern Arcadia is in itself a ground vibrate owners: the retailer is a notoriously difficult bargaining with the landowners.

Consolidation is the latest report of the OGC succession prévue.Dans, lauding effectiveness of communities and local government, that "for the first time in its history", has all the members of its staff in London 2 300 in a building, the gleaming Eland House central.This was achieved through having only eight offices for each 10 employees and a breach of lease agreement agreement with its owner, Land Securities on Ashdown House.

In John McCready, who was appointed in late year last tsar Government property such consolidation is wanted on a larger scale.Has already been imposed a moratorium on rents and this week, five years in the CSR it is understood that he could be told to look for property sales of up to ￡ used and reduce the costs by 10pc.

Industry sources say McCready is considering a new central vehicle property for Government London and Bristol bureau.Il estates will taking control of departmental portfolios and solicit the participation of the private sector, perhaps by contracts with subcontractors such as Telereal Trillium asset management.

On his appointment, McCready also spoke of potentially private Real Estate Investment Trusts government assets spinning or looking to re-engineer the site with a partner.

Its task is well packed with difficultés.Si Government wants to sell assets, it must do so in a market where the Bureau capital values remain more down 25pc peaks of 2007.

In terms of output of rental contracts, it will be unable to walk away from contracts, given the cost that the owner would require and will lead to a political backlash in regions where the rental values are too fragile to withstand the loss of the principal tenant.

Sources of commercial property are already warned that retailers are rethinking moves in places where the public sector is important.Un GVA Grimley, document the consultancy, explains: "types and locations of the sites that become available will not appeal to investors in the private sector and increased supply to weak demand will push lower asset prices.

The revolution of the State property can therefore exacerbating growing polarization between the first and secondary active and London and the rest of the United Kingdom something Gerald Ronson said earlier this year could cause "social unrest".alors that Government represents approximately 5MC demand for the office in the Centre of London, it is believed to be 40pc in cities such as Newcastle.

London commerical owners may find themselves in an enviable position compared to the owners of offices in Manchester, Newcastle, secondary Government in Wales and in écosse.Non only their "Pickles" most likely fall empty but their property is a world away from the quality, prestige and youth Londres.Conclusion tenant replacement tower is not easy.

The Government used to be regarded as a steadfast lease agreement was worth one whose reliability promotion for potential investors and to celebrate in the collectivités.La CSR is set to announce a new era.

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