Occupancy costs plan for offices

Citation

(2001), "Occupancy costs plan for offices", Facilities, Vol. 19 No. 5/6. https://doi.org/10.1108/f.2001.06919eab.004

Occupancy costs plan for offices

Occupancy costs plan for officesKeywords: Building costs

The total building occupancy costs of offices can exceed £10,000 per 100m² of floor area per annum. The latest BMI Special Report 294 – Occupancy Costs of Offices 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 3,923m² 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 III, shows the elemental costs for each example, and predicts the total occupancy costs over 20 years.

The 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.