The 1999 Office OSCAR

The 1999 Office OSCAR

Keywords: Office service charges, Costs

Jones Lang LaSalle issued its 1999 Office OSCAR (Office Service Charge Analysis Report), which reveals a national rise in costs above the headline inflation figure.

The 1999 report shows that the average national cost for office buildings has risen by 4 per cent, against the headline inflation figure for 1998 of 2.8 per cent. The report maintains that the principal influences on costs are specification, location and size and the rise in costs occurs across all three.

When it comes to the differences in costs between the North of England and the City of London, the report shows that, for an air-conditioned building, an average service charge of £3.77 per sq.ft (£40.58 per sq.m) in the North and £6.03 per sq.ft (£64.91 per sq.m) in the City.

The report shows that energy continues to represent an average 18 per cent of annual costs for buildings that are air-conditioned and 11 per cent for non-air-conditioned. Security in air-conditioned buildings accounts for 18 per cent and cleaning in non-air-conditioned takes the largest slice of overheads,15 per cent of the total annual costs.

Commenting on the report, the Rt Hon. John Gummer MP says:

There is fascinating and useful information here about service charges, insurance and building size and location. Jones Lang LaSalle has brought together a larger database and wider geographical spread, combined with some sharp-nosed comment. It makes this a valuable read and I commend it heartily.