NACE 68.2 – Renting and Operating of Own or Leased Real Estate | Public Tenders

Definition: NACE 68.2 covers the renting and operating of own land, buildings and dwellings by their owners. In public procurement, this group is central to the renting of office, administrative, school and accommodation buildings by authorities, ministries and other public contracting authorities — a substantial market volume in public procurement.

Legal basis: NACE Rev. 2 (Regulation (EC) No 1893/2006) · Last updated: January 2026

What does NACE 68.2 cover?

NACE 68.2 (Renting and operating of own or leased real estate) classifies companies and owners that rent or lease real estate for their own account — from the perspective of public procurement, these are the providers when authorities rent office or administrative space.

Group 68.2 within Section L (Real estate activities) and Division 68 is broken down into the following classes:

Public contracting authorities act as tenants where they do not own their own properties or where renting is more economic than a new-build solution. This is particularly relevant for district courts, schools, employment offices, police stations, tax offices and other decentrally organised authorities.

Public Tenders: Sector NACE 68.2

The renting of real estate by public contracting authorities requires particular attention under public procurement law: depending on their structure, lease contracts can be subject to public procurement law and must be awarded competitively.

Typical types of contract

• Renting of office and administrative space: Long-term lease contracts for authorities, ministries and offices
• School premises and education buildings: Renting of school buildings or temporary teaching containers
• Accommodation for response forces and armed forces: Barracks and accommodation buildings for police, fire service, military
• Refugee and social housing: Renting of buildings for municipal accommodation tasks
• Warehouse and depot space: Rental space for materials management and logistics of public bodies
• Interim accommodation during refurbishment projects: Temporary rental solutions during the refurbishment of own buildings

Thresholds and procedure types

The classification of lease contracts under public procurement law is complex: pure land lease contracts are excluded from public procurement law pursuant to section 107 GWB and section 10 BVergG 2018. Where the contract contains substantial construction or service elements (e.g. fit-out to tenant requirements, operating services), it may be classified as a works or service contract. The EU threshold for service contracts (2024/2025: EUR 221,000 for central authorities, EUR 443,000 for other public contracting authorities) is then decisive.

Relevant CPV codes for NACE 68.2

The following CPV codes apply where rental and leasing services and accompanying real estate services are tendered by public bodies.

Current tenders with these CPV codes can be found on TED (Tenders Electronic Daily) as well as on national procurement platforms.

Who is NACE 68.2 relevant for in public procurement?

Public contracting authorities

All public bodies that need rental space are potential buyers: in Austria, the Federal Real Estate Company (BIG) coordinates the accommodation of federal authorities in federally owned and rented buildings. In Germany, the Institute for Federal Real Estate (BImA) performs this task for federal authorities; at regional level there are corresponding property operators (e.g. Landesbetrieb Liegenschafts- und Baubetreuung in Rhineland-Palatinate). Municipalities organise their space needs via municipal building offices or in-house operations.

Companies and bidders

Real estate owners, project developers and real estate funds wishing to rent space to public bodies benefit from long-term tenant quality. Relevant aspects for cooperation with public tenants:

• Creditworthiness and reliability: Public tenants are generally financially strong and pay on time
• Tenant fit-out to government standards: Accessibility (BGG/ÖNorm B1600), data protection requirements for server rooms, security requirements
• Long contract terms: Public tenants frequently prefer terms of 10–20 years with extension options
• Compliance with public procurement law: Lease relationships with public bodies must be unproblematic under state aid law (market rent)

NACE 68.2 in context: Section L and Division 68

NACE 68.2 is part of Division 68 (Real estate activities) and is closely linked to property administration and facility management.

• NACE L – Real estate activities: Parent section
• NACE 68 – Real estate activities: Division covering all real estate activities
• NACE 68.1 – Buying and selling of own real estate: Real estate transactions by public bodies
• NACE 68.3 – Real estate activities on a fee or contract basis: Facility management and property administration

Frequently Asked Questions on NACE 68.2 and public tenders

Do lease contracts of public bodies have to be tendered? Pure lease contracts for land and buildings are excluded from public procurement law pursuant to section 107 GWB (Germany) and section 10 BVergG 2018 (Austria). Where the contract contains substantial construction or service elements, a tendering obligation may arise. A legal case-by-case review is recommended.

What is a "bespoke property" under public procurement law? Where a building is specifically constructed to the requirements of a public contracting authority and then rented (so-called "bespoke property" or "build-to-suit"), public procurement law may apply to this transaction. The CJEU developed important principles in the case Helmut Müller (C-451/08).

What requirements apply to the accessibility of rented government buildings? Public contracting authorities are obliged to use barrier-free accessible buildings (Germany: BGG, DIN 18040; Austria: ÖNorm B1600). When renting, corresponding minimum standards must be agreed or technical retrofits must be provided for as tenant fit-out.

How does rent assessment work for public-sector lease relationships? To avoid state aid issues, the agreed rent should correspond to the market price. Common evidence includes expert opinions, comparable rent analyses or the outcome of competitive tender procedures. Rents that are too high can be classified as concealed state aid.

Last updated: January 2026 All information is provided without guarantee. For legally binding advice, please consult a law firm specialising in public procurement law.