The Treasury has developed the Strategic Leasing Guidance (“Guidance”) to provide procuring entities with confidence to consider leasing to a greater extent and for a wider range of assets.
In November 2024 Cabinet endorsed the Strategic Leasing Guidance. This guidance should be considered as part of the Investment planning phase as specified in CO (23) 9 Investment Management and Asset Performance. Specifically, agencies should consider this guidance as ‘any other relevant guidance published by a central agency or system leader’.
This Guidance does not provide a new procurement model – the leasing activity contemplated in this document is no different to the leasing activities that already occur in the public and private sector. Rather, this Guidance provides the policy and project circumstances for which leasing could provide improved outcomes and be a viable option for public sector entities to consider for their physical asset requirements.
Also provided is guidance on best practice technical and commercial considerations the Treasury expects public sector entities to evaluate and incorporate into their strategic leasing arrangements.
Public sector entities should consider this Guidance at the strategic stage of their decision making process.
Consideration of this Guidance or choosing a strategic leasing approach to asset requirements does not exclude public sector entities from following Government Procurement Rules and guidance published by the Functional Lead for Property for office accommodation and public interface area requirements (Leases), where applicable.
For the avoidance of doubt, leasing proposals for office accommodation, public interface area and equipment is not within the scope of this Guidance. Procuring entities should continue to follow existing leasing guidance published by the Functional Lead for Property (Chief Executive of MBIE) for office accommodation and public interface area requirements.