Reducing Commercial Real Estate Operating Costs.
What are operating costs, and how can I save money in today's Northern California business market?
Operating costs are your day-to-day expenses incurred from running your business. Property tax, maintenance, utilities, property insurance, landscaping, and cleaning, the list continues to grow when owning commercial real estate. The topic of high inflation with no stopping in sight makes budgeting a "half to" instead of a luxury.
According to Constellation, office building owners spend an average of $2.14 a square foot on energy consumption costs, with one-third of their total non-fixed operating expenses going towards their energy expenses. Whether you are a small business owner or own a large corporation, we all agree that cutting your costs helps grow your profits.
Here are a few ways to help you lower your everyday operating costs.
- Lower your property taxes.
- If you're a business owner a commercial tax professional should be in your back pocket. According to Real Property Tax Advisors, property taxes can be reduced anywhere from 25 to 40 percent when working with a professional. Itemization for building expenses and watching your annual costs for utilities can help give you a 30,000-foot view of where you are spending your money and what creative ways you can save money.
- Minimize repairs with predictive maintenance
- Attention to your equipment like your HVAC, plumbing, light fixtures, and the roof can help prevent expensive repairs and business interruption. Budgeting for regular maintenance may seem like an oxymoron, but trust us when we say preventative will save you money in the long run.
Recommended Maintenance Guide
- HVAC SYSTEM Maintenance (2x a Year)
Working professionals say Spring and Fall are great times to get your HVAC system and equipment checked and maintained.
- Plumbing Maintenance (4x a year)
Scheduling a commercial plumbing inspection when first moving into a building can help save extensive repairs in the future. Regular maintenance by a professional plumber can help determine the level of corrosion on pipes, proper installation, and locating any cracks or leaks that potentially lead to water damage.
- Roof Maintenance (2x a year)
Roof warranties have requirements that need to be maintained or become void. Regular maintenance checks for your roof can help keep you up to date while preventing potential structural damage. A traditional maintenance check from a professional should include noting debris on the roof, any cracking, blistering, or signs of structural corrosion. Roof staining or leaks can be a tell-tell sign that moisture is getting into the roof, and further action needs to be taken. Also, don't forget skylights, chimneys, gutters, and drains need to be checked and maintained.
- Create an Emergency Disaster Plan
- Partnering with someone like SERVPRO of North Shasta, Trinity, and Greater Tehama Counties to create a SERVPRO Emergency Ready Plan (ERP) can help give you, your employees, and customers peace of mind and save money and time in the long run. When calculating expenses, we forget to factor the unplanned disasters. While we pray you will never need an emergency plan, having a plan, budgeting, and knowing who to turn to will help your pocketbook.
- Have a Plan.
- Having an immediate plan of action can help minimize the downtime to your business in an emergency.
- Establish your local SERVPRO as your disaster mitigation and restoration provider.
- We are your local certified industry leader restoration provider, ready to serve you 24/7, 365 days a year.
- Ready to board up windows and doors, day or night, to keep your property safe and secure after fire or vandalism.
- 24-hour sewage backup, vandalism, and odor removal cleanup.
- Insurance Claim Process
- SERVPRO will help you navigate the insurance claims process and coordinate the necessary paperwork for a quicker, easier experience.
Remember, you are not alone. Create a step-by-step plan to lower costs and expenses that you can implement over time.
“The secret of change is to focus all of your energy not on fighting the old, but on building the new” -Socrates
Start building the new you today!