08/22/2002

The Numbers Are In: How Do Corporate Facilities Rate?

 

Washington, D.C. – For the first time in four years, corporate facilities reported increases in total operating expenses, according to BOMA International’s 2002 Experience Exchange Report.

Every year, BOMA International surveys its membership to gather income and expense information, which is published in the Experience Exchange Report. This publication provides readers with a diverse collection of data analyses, ranging from national cross-tabulations and special building data tabulations to city analyses for 123 cities in North America. Since the operation of corporate facilities differs from general multi-tenant office buildings, and their benchmarking needs are also unique, BOMA International asks its corporate facility participants to complete a supplemental survey form to ensure that these distinctions are captured.

This year, both downtown and suburban markets showed increases in total operating expenses. When these numbers are compared to overall U.S. private-sector buildings, corporate facilities still outperformed private-sector buildings. At $10.83 per square foot for all U.S. private-sector buildings, the total operating expenses for downtown and suburban corporate facilities were lower by 2.95 percent and 31.27 percent, respectively.

U.S. Downtown Expense Comparisons

Total expenses (operating plus fixed) for the downtown corporate facilities or owner-occupied buildings were up by 5.94 percent to $10.52 per rentable square foot (rsf) for year-end 2001. This is after coming off of three years of consistent decreases in total expenses. This increase can be attributed to an increase in fixed expenses in 2001.

Operating expenses actually decreased by 1.84 percent over the previous year. The decrease was driven by lower utilities, repair/maintenance, and cleaning expenditures. Decreases ranged from $0.04 per square foot to $0.12 per square foot over year-end 2000 levels. Roads/grounds, security, and administrative expenses challenged this trend upward by incurring increases of 5.88 percent, 5.81 percent, and 40 percent, respectively. The end result was total operating expenses at $7.46 per square foot per year.

U.S. Suburban Expense Comparisons

Like their downtown counterparts, corporate facilities in suburban locations also reported an increase in total expenses. The increase was caused by a rise in both fixed expenses and operating expenses.

Operating costs actually increased by 4.44 percent. Although there was an increase overall, cleaning costs decreased $0.08 while roads/grounds decreased by $0.11/rsf. All other line items increased, including hefty increases in security and administrative: 15.49 percent and 10.77 percent, respectively.

Total Operating Costs Comparisons

Facility expenses represented 10.69 percent of the total organization budget within our data sample. Table 1 and Table 2 compare differences in total operating expenses for different corporate facility types and different facility industry functions. 

The corporate facility type with the highest operating expenses by far is computer operations/data services. Also, corporate facilities associated with the manufacturing industry were more expensive to operate than other industry-related facilities, a change from last year’s survey results.

Table 1: Facility Type Operating Expenses
Total Operating Costs
Facility Type ($/RSF)
Back-Office Operations and Administrative
$5.13
Computer Operations/Data Services
$12.46
Headquarters
$6.83
Mixed Function (No predominant use)
$7.26
Research and Development
$7.91

 

Table 2: Industry Function Operating Expenses
Total Operating Costs
Industry Function ($/RSF)
Financial/Insurance
$6.89
Hi-Tech
$9.77
Utility
$5.99
Manufacturing
$12.10
Wholesale/Retail
$4.35
 


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Visit our website today to learn about the design flexibility of a Morton building and the endless possibilities of partnering with our designBUILD team.


Wood construction is both cost and energy efficient. Check out Morton Buildings and our designBUILD team online today to discover all the benefits of post-frame construction.


When choosing a metal-clad building for your next construction project, consider Morton Buildings, Inc., and their designBUILD team, we’ll make your dream a reality.

We Can Help You Reduce Energy by 30%

Our mission is to help our customers manage their buildings' energy costs, improve reliability, and enhance performance while having a positive impact on the environment.
CLICK HERE to find out how.

 

Add highly responsive multi-zone comfort to any building project, in any climate. Our CITY MULTI H2i R2- and Y-Series VRF systems give you flexibility to fit the needs of any building. Enjoy 100% heating capacity at 0°F outdoor ambient, and 85% heating capacity at -13°F outdoor ambient.  For more information, log on to www.mitsubishipro.com


Tennant Company is a recognized leader in designing, manufacturing and marketing solutions that help create a cleaner, safer, healthier world. With thousands of satisfied customers already using award winning ec-H2O technology, why not see what you're missing? Test ec-H2O on your soils in your facility. Get a free demo.


Tennant Company is a recognized leader in designing, manufacturing and marketing solutions that help create a cleaner, safer, healthier world. With thousands of satisfied customers already using award winning ec-H2O technology, why not see what you're missing? Test ec-H2O on your soils in your facility. Get a free demo.

 

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