Office costs rise ahead of inflation

The average cost of running an office building in the UK rose by 4% last year, against an inflation figure of 2.8% for the same period.

Jones Lang LaSalle's 1999 OSCAR report, which analyses office service charges, maintains that the principal influences on cost are specification, location and size. Costs rose across all three elements, notes JLL.

Energy is a big factor, especially in air conditioned buildings where it accounts for about 18% of total expenditure. The cost of security is on about the same level, with cleaning not far behind.

If we needed anymore confirmation about the effect of location, OSCAR reports that the cost of occupying high-spec space in the City of London is about twice what it is in the north of England.

A parallel study of service charges in shopping centres shows that costs there have risen by well over 3% in the past year. The largest item of expenditure is now security.

Elliott Chase