These are the Office Markets with the Largest Operating Expenses
The total operating expenses include all expenses necessary to operate an office property including maintenance, repairs, utilities, cleaning, roads and grounds, administration and security. Let’s take a look at the office markets that boast the largest operating expenses according to Building Owners and Managers Association (BOMA).
#1 New York
New York tops the list with the highest operating expenses.
Total Operating Expenses: $12.95
Fixed Expenses: $14.98
#2 San Francisco
Total Operating Expenses: $11.65
Fixed Expenses: $6.98
#3 Washington D.C.
Total Operating Expenses: $10.94
Fixed Expenses: $11.99
Total Operating Expense: $10.24
Fixed Expenses: $8.67
#5 Oakland, California
Total Operating Expenses: $9.87
Fixed Expenses: $4.06
#6 Los Angeles
Total Operating Expenses: $9.80
Fixed Expenses: $5.62
Total Operating Expenses: $9.39
Fixed Expenses: $5.16
#8 Washington D.C.’s Maryland Suburbs
Total Operating Expenses: $8.94
Fixed Expenses: $3.05
Repairs Maintenance: $2.28
Total Operating Expenses: $8.92
Fixed Expenses: $8.58
Total Operating Expenses: $8.90
Fixed Expenses: $2.45
Tips for Reducing Operating Expenses
Automate Energy Systems:
Energy bills can quickly add up, especially during cold or warm seasons. By automating your energy systems, you can reduce energy usage by utilizing sensors that can quickly turn off lights or heat sources when space is not being used. These systems can accurately gauge your energy usage and help determine when and where the usage can be reduced.
Transition to the Cloud:
SaaS applications that are cloud-based can help reduce the need for in-house IT services. This can also help you get rid of unnecessary hardware like services so you can optimize the use of your office space. When you transition to the cloud, your system will be upgraded, and you will receive technical support and hosting so that your IT funds can be allotted to where it is needed most.
Decrease Travel By Hosting Remote Meetings: Decreasing travel can make a great difference for a company’s bottom line. Remote meetings can help a company avoid expensive business trips. Effective communication tools like Zoom and Skype can help remote meetings go smoothly and accomplish goals.