Indicators and Drivers of Occupancy Costs

"To maximize the returns on a real estate investment, it is essential that property owners intelligently manage all the variables that could negatively impact the long-term value of the asset. Occupancy costs have historically represented a large percent of what is spent over the lifetime of a real estate investment. Therefore, to maximize the returns on their investment, it is important that property owners, first, make a cost benefit analysis of various options, and second, reduce the occupancy costs associated with the chosen option by either eliminating or better managing the underlying drivers. This study is addressed to facilitate the decisions made around the second point by gaining a better understanding of the causal relationships between identified drivers and occupancy cost indictors. By examining the costs and all the factors that go into those costs, of 150 municipal buildings (100 schools, 50 sports facilities), the research looks to both build on the investment versus occupancy cost analyses done by GSD (2003) and Stoy (2005, 2008) and help property owners identifying how they can better reduce occupancy expenditures and manage their investments more intelligently.""