Is it not enough to measure parameters and verify them against other criteria, we ask the question why. It is necessary to delver tangible results to our clientele to keep their business for the long term, to do this, we assign certain parameters for measurement and verification to assess our performance in line with the building’s peers.
Energy consumption is a great example, we see the consumption of energy and compare this to the square meter area and to the air conditioning service maintenance costs. Do we see a trend? if the maintenance costs are on an upward trend is not logical to energy consumption in a downward trend in line with the season? A site visit with any service dockets and photos will deliver more information and logic as to what is happening in the physical world of the building.
We have a few great examples of a simple observation and acting upon that observation has saved significant funds, with minimum capital ( in fact no capital in one example)
It is one thing to engage a company to perform maintenance, but is the maintenance being completed an effective maintenance? Are seeing regular and differing issues on site or is the maintenance company quiet? ( how many buildings do you know have zero maintenance problems) Do we have photo evidence of the changes and maintenance being completed? do we have the maintenance vendor providing detailed services dockets or are just a check list or 10 words every month? do they service all the site or just the equipment in easy reach? do they rotate service technicians to ensure “new” eyes and multiple skill sets performing the maintenance?
Budget accountability includes all the budgets, capex, maintenance, outgoings, rent, Energy, tax, GST, etc.
Are budgets being adhered to? Are they realistic? Why and why Not? Reviewing the numbers is critical, especially moving between seasons and when tenant retention is low. Is there a relationship between tenant retention and the budget? What comparisons and diligence are being done now? What can we do to add value?
Is tenant retention average, better than average? Is there an opportunity for the rents to be increased? Is tenant Retention low? Is this building’s trend in line with the market’s trend? Is there an opportunity to add value and/or increase yield over the three year term with refurbishment? Are there business opportunities in considerations for refurbishments, and/or main plant upgrades?
Wraight – Technical Services in Commercial Property – Sydney and Melbourne is Stephen Fry proof thanks to caching by WP Super Cache