Efficient facility solutions save government agencies almost €19 million annually – savings of almost €800 million since 2015

Last year, Senate Group, which is responsible for state-owned properties, and government agencies agreed on annual savings totalling €18.8 million in agency facility costs. The most significant savings are delivered by moving to shared working environments.

The Group’s saving target of €9.5 million for 2023 was greatly exceeded. Senate Properties accounted for €16.3 million of the savings and Defence Properties Finland, which is responsible for the facilities of the Finnish Defence Forces, for €2.5 million. Achievement of the government’s saving targets is progressing faster than planned.

Savings were achieved thanks to the 151 facility solution projects agreed during the year. Unnecessary and underused facilities are being phased out. Key savings in premises are achieved through shared work environments between agencies. The Government Premises Strategy aims for a quarter of employees working in government institutions and agencies to work in shared work environments by 2030.

“At the same time, cost saving projects have resulted in modern work environments that support multi-location working,” says Kasper Fabritius, Sales and Marketing Manager at Senate Group.

Cost savings of almost €800 million since 2015

Achieving savings in government facility costs has been one of Senate Properties’ key goals since 2015. Cumulatively, savings on government facilities have so far reached €784 million.

Improving the space efficiency of government office premises is a key way to reduce the costs of premises. At the beginning of the 2010s, the space efficiency of government office premises still exceeded 30 square metres per person. The figure is currently 15.2 square metres per full-time equivalent and the latest Government Premises Strategy sets a target of 10 square metres.

Government premises account for around 10% of public premises

Government facility costs are around €800 million per year, and the facility stock totals 5 million square metres. The total area of public sector premises is around 70 million square metres, with municipalities having a total of around 55 million square metres and wellbeing services counties around 11 million square metres.

Senate Group comprises the parent unincorporated state enterprise Senate Properties and the subsidiary unincorporated state enterprise Defence Properties Finland, which is responsible for the facilities of the Finnish Defence Administration. Senate Properties and Defence Properties Finland are unincorporated state enterprises that together with their clients develop facilities and work environments and look after the state-owned real estate assets.