Strategic occupancy cost benchmarking for industrial buildings

Citation

(2000), "Strategic occupancy cost benchmarking for industrial buildings", Property Management, Vol. 18 No. 2. https://doi.org/10.1108/pm.2000.11318bab.015

Strategic occupancy cost benchmarking for industrial buildings

The cost of occupying industrial buildings over a typical 20-year period can amount to a sum between one and three times the initial capital costs.

The latest BMI Special Report Occupancy Costs of Industrial Buildings (BMI special report 280, price £30.00) looks at two similarly constructed industrial buildings, and projects the maintenance and occupancy costs over a 20-year period. The buildings are: a large warehouse with around 13,000m² for storage and 600m² of office accommodation, and a small mixed offices/industrial unit with 540m² for storage and 300m² of office accommodation. The effect that these difterent usage profiles have on occupancy costs can be seen in Table III below which shows the average cost for each element over a period of 19 years. Joe Martin, Executive Director of BCIS Ltd commented:

Planning the occupancy costs of a building is the first step to controlling future expenditure.

The report contains priced occupancy cost plans showing detailed annual expenditure patterns element by element, together with a detailed build up of all the costs involved. The occupancy cost plans will act as a benchmark for organizations with similar buildings. They also provide a pattern and similar information for facilities managers or owners wanting to set up occupancy cost plans for their own buildings.

Table III. Industrial buildings - occupancy costs (/100m²) 3Q98 prices