Keeping service charges down – Cushman & Wakefield report – EuropaProperty

The office market in Poland continues its positive momentum amidst the backdrop of increasing occupier requirements, including lower costs. Cushman & Wakefield, has launched its latest report Occupier Perspective with a thorough analysis of service charges in modern Class A and B office buildings.

Service charges constitute a significant part of office space leasing costs. Utilities account for 28 percent of service charges, followed by taxes and other fees (24 percent), and maintenance and running repairs (20 percent).

Awareness of different types of operating costs making up service charges and a proper understanding of how they are settled are all important to office space lease and use. This is relevant to both the choice of an office building and optimum office design, and helps to negotiate lease terms and to manage a property efficiently.

“When choosing a new office, occupiers should focus in particular on energy-efficient solutions that can make an office building more efficient and consequently help them make real savings on operating costs. They should also insist that lease contracts include an exhaustive list of service charges and specify a cap on the amount of any increase of such charges by a landlord,” said Katarzyna Lipka, Associate Director, Consulting and Research Department, Cushman & Wakefield.

Cushman & Wakefield’s research reveals that service charges may account for up to 20-25 percent of office space leasing costs. The highest service charges are recorded in office buildings in Warsaw, Krakow, Poznań and Wrocław, and the lowest are in Lublin.

Occupier Perspective is a series of reports constituting a compendium of knowledge for tenants of commercial properties. It provides occupiers of office buildings and shopping centres with updates on key market trends, accurate information and advice that help them organize their daily operations better and negotiate lease contracts with landlords.