Most of the Real Estate Management Professionals I know are under constant pressure to reduce operating expenses (OPEX) in their commercial buildings. Furthermore, they are expected to do so without the benefit of making additional capital investments, like retrofitting interior/exterior lighting to LED, or incurring unbudgeted expenses.
Did you know that a simple change of approach can help you reduce annual OPEX expenses in multiple areas while working within an existing operation budget?
As an OPEX reduction advisor I work with clients to craft “pay as you save” approaches which is an effective method to reduce operating expenses without having to pay fees upfront. Often, we are able to have the consulting fees paid for through OPEX savings over time. As a result we have created a cash flow positive situation which looks good from an ownership, management, and tenant perspective.
Here are 8 categories of OPEX that can likely be reduced without upfront cost:
Energy – Electrical and Natural Gas (5% – 15% cost reduction)
Water/Sewer (10%-25% cost reduction)
Trash Removal & Recycling (10%-20% cost reduction)
Janitorial (5%-10% cost reduction)
Insurance (5%-15% cost reduction)
HVAC Service Contracts (5%-10% cost reduction)
Elevator Maintenance Contracts (5%-10% cost reduction)
Landscaping/Snow Removal Contacts (5%-10% cost reduction)
If this approach sounds different than what you are used to, it should.
Just let me know if you are interested in learning more about this innovative yet proven approach to reduce operating expenses in existing commercial buildings.