How Better Property Planning Can Deliver 30% Savings on Lease Costs

For Commonwealth entities, property decisions are no longer just about securing office space—they are about driving measurable lease cost savings, improving policy compliance, and aligning accommodation with future workforce needs. A robust strategic property plan gives agencies the foresight to make smarter leasing decisions before market pressure, expiry dates and rushed approvals erode value.

When done well, strategic planning consistently unlocks property cost reduction, stronger office space efficiency, and better outcomes across the full property lifecycle.

Why strategic property planning matters in the Commonwealth context

Within the Commonwealth, property planning is governed by RMG 500 – the Commonwealth Property Management Framework, which requires non-corporate Commonwealth entities to actively manage their property portfolios through evidence-based planning, regular reporting, and efficient utilisation.

The Department of Finance’s latest Australian Government Office Occupancy Report shows:

• National occupational density improved to 13.1m² per work-point in 2024
• Tenancies meeting density targets increased to 53.9%
• Net tenancy expenditure remains significant at $1.52 billion annually

These figures reinforce a clear reality: small improvements in footprint planning create major financial outcomes at scale.

A strategic plan helps agencies answer critical questions early:

• Is the current footprint aligned with future workforce demand?

• Can hybrid work reduce space requirements?

• Could lease expiries be aligned to create economies of scale? 

• Does the portfolio support sustainability and net zero objectives?

• Is current utilisation supported by reliable space utilisation data?

These are exactly the issues addressed through ASPA’s integrated expertise across Planning, Analytics, and Governance and Assurance.

The cost of leaving planning too late

A common scenario across government is an agency considering its new lease requirements just 12 months from its existing lease expiry. 

By that point, the organisation often faces:

• limited market testing time

• compressed governance approvals

• weak negotiation leverage

• insufficient stakeholder engagement

• rushed fit-out or capital works decisions

• reduced opportunity for government lease optimisation

The result? Agencies frequently renew more space than they need, lock in avoidable costs, and miss opportunities for reducing footprint in government offices.

A rushed lease extension may feel like the “safe” option, but it can quietly embed years of unnecessary spend.

Not only that, agencies are often failing to realise that an exercise of option represents a limited approach to market under the Commonwealth Procurement Rules, and as such, requires significant justification to support this decision which requires approval of both internal and external delegates. 

How early planning delivers 30% lease cost savings

By contrast, agencies that engage expert advisers early can reshape the entire commercial position of a lease.

At ASPA, strategic engagement often begins 24–36 months before lease expiry, creating enough runway to:

• assess workforce trends

• model multiple occupancy scenarios

• benchmark against Commonwealth and private sector density targets and performance standards 

• identify consolidation opportunities

• sequence budgeting and funding requirements

• develop a stronger leasing strategy

This is where meaningful lease cost savings are created.

ASPA’s advisory track record has consistently delivered around 30% lease cost savings, often by combining:

• reduced square metre requirements

• improved utilisation assumptions

• stronger landlord negotiations

• better market timing

• smarter incentives structuring

• relocation versus stay/go scenario testing

In many engagements, the savings continue compounding well beyond the first lease term.

Office space efficiency starts with better data

Good decisions require better evidence.

The Commonwealth’s occupancy reporting framework increasingly highlights the role of density and utilisation metrics in portfolio efficiency. Finance notes that this evidence base supports better whole-of-government property decisions and helps entities progressively improve outcomes.

This is why space utilisation data has become central to strategic planning.

Rather than relying on anecdotal assumptions like “the office feels busy”, leading agencies now use:

• occupancy studies

• workforce growth forecasts

• work-point demand modelling

• attendance pattern analysis

• operational adjacency mapping

• scenario-based footprint simulations

Through ASPA’s Analytics capability, this data is translated into practical decisions that improve office space efficiency and strengthen executive confidence.

Compliance, governance and future-proofing

Beyond savings, strategic planning protects agencies from governance and policy risk.

RMG 500 requires property decisions to demonstrate value for money, efficient use, and alignment with current and future operational needs. Leaving this until procurement commencement can create avoidable compliance gaps.

A well-structured property roadmap links:

• policy obligations

• capital planning

• procurement timing

• sustainability targets

• accommodation standards

• risk controls

• portfolio reporting

This whole-of-lifecycle view is where ASPA’s model adds long-term value.

ASPA as your long-term strategic property partner

The strongest Commonwealth property outcomes come from partnerships, not one-off transactions.

Strategic services are not part of the role of agencies and Property Service Providers, as strategic services require a specialist skill set, tailored methodologies, and unique experience to ensure agencies can optimise their portfolio performance. 

ASPA brings more than advisory support—we act as a long-term strategic partner, helping agencies continuously optimise portfolios across planning, leasing, funding, governance, and delivery.

Our work has directly contributed to hundreds of millions in client savings, while improving utilisation, strengthening compliance, and reducing long-term portfolio risk. This experience is reflected across our Case Studies.

Whether your priority is property cost reduction, government lease optimisation, or a smarter roadmap for reducing footprint in government offices, early strategic planning is the lever that drives lasting results.

Ready to unlock smarter lease savings?

ASPA helps Commonwealth entities turn early planning into measurable savings, stronger compliance, and future-ready property portfolios.

To discuss how your agency can achieve up to 30% lease cost savings, Enquire or Set an Appointment with our team today.