NACE L – Real Estate Activities | Public Tenders

Definition: NACE Section L covers the buying, selling, renting and operation of real estate on own or others' account, including the management of residential and commercial property. In public procurement, real estate services and facility management for publicly owned property are particularly relevant.

What does NACE L cover?

Division 68 is broken down into:

• 68.1 – Buying and selling of own real estate
• 68.2 – Renting and operating of own or leased real estate
• 68.3 – Real estate activities on a fee or contract basis

Public Tenders in Real Estate

Public contracting authorities are major property owners: federal buildings, schools, barracks, hospitals and administrative buildings have to be operated, managed and maintained. Real estate services are regularly tendered competitively.

Typical Contract Types

• Facility management: Integrated facility management (IFM) for public property holdings, commercial and technical FM
• Real estate management: Property management for non-profit housing, management of public property holdings
• Guarding and security: Security services for public buildings
• Cleaning and building services: Routine cleaning, window cleaning, exterior grounds maintenance
• Office space leasing: Leasing of private space for use by authorities
• Energy-related building management: Energy monitoring, operational optimisation of public buildings

Thresholds

Service contracts for real estate and building management from EUR 221,000 are subject to EU-wide tendering. Lease agreements (where the public sector is the tenant) are generally excluded from procurement law, provided the property is freely available on the market.

Common CPV Codes

Contracting Authorities

• Federal real estate agencies: BIG (Austria), BIMA/BImA (Germany) as central property managers
• Regions and municipalities: Management of schools, town halls, cultural facilities
• Non-profit housing companies: Property management and maintenance of social housing
• Universities and higher-education institutions: Campus management, building management
• Armed forces: Barracks and property management

FAQ

What tenders are available for property-management firms? Property managers can bid for tenders for the management of public property holdings. Typical services: commercial FM, tenant management, service-charge accounting. CPV code: 70330000. GEFMA certifications and references are often required.

Is the leasing of office space by authorities subject to a tendering obligation? The leasing of real estate is generally excluded from procurement law where the property is freely available on the market and the contracting authority does not exert decisive influence over the design of the property. In public-private partnerships or special cases, procurement law may apply.

What is integrated facility management and how is it tendered? Integrated FM (IFM) covers all technical, infrastructural and commercial building services from a single source. It is tendered as a complex service contract via competitive dialogue or negotiated procedure with prior call for competition. Large property holdings (e.g. hospitals, barracks) are particularly suited to IFM models.

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