Estonian government, having started to adopt the ideas of the theory of New Public Management, has decided to apply private sector best practices also in it´s public sector real estate asset management (PREAM). In order to evaluate the possible performance of the reforms, outlined to implement on the state level of real estate portfolio, a general theoretical concept of PREAM and also four basic PREAM models have been developed. According to these models, two basic views of Estonian state buildings portfolio are empirically analyzed: 1) the portfolio of general-purpose property and 2) the portfolio of special-purpose property. The results of the research is given, based on the two main analysis methods - fiscal impact analysis (FIA) and benefit-cost analysis (BCA), where the discussion about the appropriate level of discount rate application to long-term cash-flow forecast plays a significant role. Implications made out of the research should give some broader enlightment about the problems arising from the similar kind of model-based analysis of the performance of public sector real estate asset management in other countries. The results and conclusions of the paper may be useful to countries still considering the application of improving reforms of real estate management in their public sector.