Occupancy cost plan for offices

Citation

(2001), "Occupancy cost plan for offices", Property Management, Vol. 19 No. 2. https://doi.org/10.1108/pm.2001.11319bab.013

Occupancy cost plan for offices

Occupancy cost plan for officesKeywords: Offices, Costs

The total buiIding occupancy costs of offices can exceed £10,000 per 100m² of floor area per annum. The latest BMI Special Report estimates the total occupancy costs of two air-conditioned office buildings over a 20-year period. Even over this relatively short period, occupancy costs are three to four times the initial capital cost. The estimates show that the larger of the two buildings, with a floor area of 3923m² costs 16 per cent less than the smaller building which has a floor area of 763m². Average annual costs per 100m² are £9,415 and £11,240, respectively.

Overheads are the most expensive element in both buildings, accounting for over one-third of the total costs in each case which reflects the importance of business rates. Cleaning, administration and utilities all account for between 10 per cent and 20 per cent of total costs.

Table II shows the elemental costs for each example, and predicts the total occupancy costs over 20 years.

Table II Offices - occupancy and capital costs

BMI Special Report 294 – Occupancy costs of Offices is available as part of the BMI subscription service, or individually priced £50.00 from BMI, 12 Great George Street, Parliament Square, London SWIP 3AD.