Running costs for new offices rise 3%
The cost of running a new office in the past year has risen on average 3 per cent, according to an annual review.
However, in the stagnant UK economy over the past 12 months there were no significant overall changes up or down in total office costs.
The division of costs for running a new office building is:
Rent = 35%
Rates = 15%
Hard FM = 23%
Soft FM = 11%
Annualised costs = 14%
Management = 2%
For new offices, total office costs are broadly level, with small rises, and no falls of more than 1 per cent and an average rise of 3 per cent.
The average net effective rent rose by 4 per cent, according the 15th annual review.
But some cities and regions have seen significant effective rent rises, noted the Total Office Cost Survey 2102 from management consultancy Actium Consult.
Net effective rents on new offices increased significantly in Cambridge (+ 23 per cent), Aberdeen (+ 18 per cent), and West End (+ 7 per cent) and London’s midtown (+ 10 per cent).
The biggest fall in net effective rent was 7 per cent in Milton Keynes, the survey noted.
The highest workstation price is for that in a new office in the West End at £16,830. The cheapest is for a 20-year old office in Belfast at £4,097.
Overall the average net effective rent for older buildings remained unchanged (up 1 per cent), but individual locations varied from - 27 per cent in Portsmouth to + 31 per cent in Cambridge.
The average rent-free period decreased marginally from 26 months to 25 months for new offices but increased slightly from 29 to 30 months for 20-year-old buildings.
The net effective rents on new buildings are on average 56 per cent above those on 20-year-old buildings.
On average, rent and rates combined are 46 per cent of the total office cost for new buildings but only 23 per cent of the total office cost for 20-year old buildings.
The cost of energy is up sharply by 19 per cent for new buildings and 21 per cent for older buildings. Energy is now 6.5 per cent of the total occupancy cost of older office buildings.A further 380 jobs have now gone at Carillion Energy Services bringing to nearly 1,200 the number of jobs lost as part of a dramatic restructure of the business following government cuts to subsidies for solar electricity.
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