Strategic occupancy cost benchmarking for industrial buildings

Property Management

ISSN: 0263-7472

Article publication date: 1 May 2000

Citation

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

Publisher

:

Emerald Group Publishing Limited

Copyright © 2000, MCB UP Limited


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