Key Real Estate Cost Indicators

What should a business measure to assess the performance of a property portfolio? Some of the easy things to measure (such as some facility costs) may have little impact on the overall profitability of a property. We suggest some significant measures that can be considered.

Accomodation Cost Analysis

This can show how a property or portfolio is performing against the market and other occupiers. It includes Key Performance Indicators relating to cost per area and cost per workstation.

Property Flexibility Analysis

Greater flexibility gives greater opportunity to expand or contract a workplace and potentially take advantage of changing market conditions. Conversely short lease terms may give a landlord the opportunity of recovering possession.

This can show potential opportunities to restructure Real Estate Infrastructure and raises alerts on upcoming action dates.

Next>> Key Real Estate Cost Indicators (part 2)