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Journal cover: Journal of Corporate Real Estate

Journal of Corporate Real Estate

ISSN: 1463-001X

Online from: 1998

Subject Area: Built Environment

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Real estate management in the Swedish public sector

Document Information:
Title:Real estate management in the Swedish public sector
Author(s):Hans Lind, (Division of Building & Real Estate Economics, Department of Infrastructure, Royal Institute of Technology, S - 100 44 Stockholm, Sweden; Tel: +46 8 790 73 65; e-mail:, Ted Lindqvist, (Temaplan, Sveavägen 90, S - 113 59 Stockholm, Sweden; Tel: +46 8 673 98 00; e-mail:
Citation:Hans Lind, Ted Lindqvist, (2005) "Real estate management in the Swedish public sector", Journal of Corporate Real Estate, Vol. 7 Iss: 2, pp.178 - 190
Keywords:Internal asset rents, Public sector, Real estate management
Article type:General review
DOI:10.1108/14630010510812594 (Permanent URL)
Publisher:Emerald Group Publishing Limited
Abstract:The Swedish central government has implemented a radical market-oriented reform of its real estate management. Authorities are free to rent premises from private firms, and stateowned properties have been allocated to a number of entities that lease their properties to authorities on conditions similar to those on the open market. The background and experience from these reforms are described in this paper. Local authorities and county councils have also reformed their real estate management systems in the same direction, but not as radically. There were many unexpected problems with implementing these systems, related for example to difficulties in writing good contracts for special purpose buildings, conflicts about rent setting and differences in bargaining power between the property-owning units and the tenants/authorities. The general view is, however, that the reform created necessary economic incentives for the authorities in the public sector to economise on premises, but that it is very important to think through the details and to adjust the system to changing circumstances. An example is that the introduction of school vouchers created problems for some systems of setting internal asset rents.

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