Jones Lang Wootton - office service charges

Citation

(1998), "Jones Lang Wootton - office service charges", Property Management, Vol. 16 No. 2. https://doi.org/10.1108/pm.1998.11316bab.009

Jones Lang Wootton - office service charges

Jones Lang Wootton ­ office service charges

Keywords Costs, Occupation, Offices

Research released on 16 December 1997 shows that average aggregate office service charges in the UK have fallen for the second consecutive year despite continuing inflationary pressures.

Jones Lang Wootton Office Service Charge Analysis Research (OSCAR) for 1997 considered data in respect of almost 300 buildings totalling over 11,725,000 ft² (1,089,279 m²).

Other findings in the research have been as follows:

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  Total average costs per ft² for air-conditioned buildings fell by 7 per cent compared with 1996 and now stand at £4.94 per ft² (£53.31 per m²). For non-air-conditioned buildings, aggregate costs fell by 2 per cent on average to £3.52 per ft² (£37.94 per m²).

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  Despite reduced aggregate costs for City and West End buildings, these areas still remain the most expensive with total costs in the West End almost £1.00 per ft² higher than the UK average for air-conditioned buildings, and £0.50 higher for non-air-conditioned.

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  Reductions in energy costs have contributed significantly to the total cost reductions but energy still remains one of the most significant costs, particularly for air-conditioned buildings, where it accounts for over 20 per cent of the average service charge bill. Unit cost reductions have resulted from deregulation and increased competition in the utilities sector. Reductions in heating and air conditioning maintenance and security charges have also contributed to the overall reductions, here competition between service providers is having the effect of reducing costs.

Barry Nealon, Partner at Jones Lang Wootton, commented:

"OSCAR 97 will be of assistance in providing unique data to the property industry to inform owners and occupiers on decisions relating to service charge trends. With a large database covering a wide cross-section of properties and locations OSCAR is the definitive benchmark. We stress, however, that the unique nature and use of individual office buildings and their particular location mean that any comparisons should be undertaken with care."

For further information please contact Barry Nealon, Partner at Jones Lang Wootton. Tel: 0171 493 6040.