The first standard for measuring occupier costs

Keywords Database, Costs, Property

In October 1999, the IPD Occupiers Property Databank (OPD) launched its new Total Occupancy Cost Code (TOCC), designed to be the standard form of measuring property and facilities costs for all businesses and public sector organisations. This unique reference guide has been prepared with the help of its clients and of leading occupiers, consultants, accountants, service providers, developers and academics.

The four key features of the code that make it an invaluable document for anyone involved in property and facilities analysis are:

• 1.

  Totality. For the first time all occupancy costs are brought together, whether capital or revenue, estate or facilities expenditure.

• 2.

  Definitions. All items are defined in detail to provide a clear and useful document.

• 3.

  Usability. Easy to use, the TOCC will also be useful to those preparing to collect their occupancy cost data together for the first time.

• 4.

  Application. The TOCC describes the possible uses of more accurate,total cost information in terms of creating key ratios, setting targets,tracking performance etc.

The TOCC will help to:

• make total occupancy costs (including previously hidden costs) transparent for strategic and audit purposes;

• permit cost targeting to be established on a systematic basis and provide a costing and pricing tool for customers and suppliers;

• provide the necessary data for occupancy cost accounting, performance measurement, cost comparison, life cycle costing and benchmarking;

• assist with new types of procurement and outsourcing such as "private sector" PFI and serviced offices;

• allow for a consistently fair and open form of measuring service charges for both landlords and tenants;

• provide a common standard for property management information systems.

Christopher Hedley, director of IPD Occupiers Property Databank, said:

I am particularly pleased that the five key organisations - RICS,BIFM, BCO, NACORE and IDRC - have supported the TOCC.

The following quotes are from these organisations:

This is a very considerable contribution towards more effective and measurable corporate property management (Alan White, chair, Corporate Occupiers Group, Royal Institution of Chartered Surveyors and Head of Property, BT).

The facilities manager's credibility in the boardroom will always be based on the ability to produce accurate and relevant cost and performance data...I believe that this cost code will enhance the FM's ability to achieve this (Sir Antony Walker KCB, Director-General, British Institute of Facilities Management).

The BCO endorses the cost code, providing as it does both a vital tool for the use of corporate occupiers and important information for those who would supply buildings to them (Nigel Waring, Chair of Occupation and Management Committee, British Council for Offices and Head of Midland Bank Property Services).

Accurate and consistent capturing of total property costs is central to effective property strategy and management. We give our support to this essential initiative (Ron Adam, Chairman, IDRC UK Chapter).

We believe that the cost code is an essential step forward, which allows corporate real estate managers to take control of their property costs(David Turner, president, NACORE Europe UK).

The OPD Total Occupancy Cost Code is available at a price of £85(discounts available for multiple copies) from Emma Taylor at IPD Occupiers Property Databank, 7/8 Greenland Place, London NW1 0AP. Tel: +44 (0) 20 7643 9218; Fax: +44 (0) 20 7284 2667; E-mail: emma.taylor@ipdindex.co.uk