In a market with many leasing options for tenants, property owners need to differentiate their buildings from those of the competition. One area that many owners neglect is the efficiency - or, should I say, the inefficiency - of the building’s utility costs and property maintenance.
In any given market, tenants can expect to pay an average per-square-foot price, but they may find there is a wide range when it comes to common area maintenance charges (CAMs) and utility costs.
Because they are in a very desirable area in which tenants have few options and little leverage, some commercial property owners are able to get away with energy-inefficient buildings.
But most owners could increase occupancy rates and income by cutting costs for their tenants. (Continued on PDF)