Paul Stewart, Deputy Managing Director of Goadsby Commercial, reports key information from two recent surveys on commercial property service charges:
A survey by service charge consultants, Property Solutions, has shown commercial property service charge costs have risen annually by 12% outside of London and now average £5.90 a square foot. Paul comments “If occupational costs rise substantially it squeezes tenant’s ability to perform and ultimately pay their rent. Close management of the figures and services is required”.
Further, The Service Charge Operating Report for Offices 2014 has analysed 100 building’s service charges in relation to conformance with the RICS Code of Practice Commercial Service Charges. Only 6 % of the buildings assessed matched the 9 standards set out in the code!
“At Goadsby, we have a dedicated team of staff who manage commercial premises. We employ 4 management accounts staff and between them and the relevant surveyor, budgets are issued ahead of the new financial year. Year end accounts are signed off in a prompt fashion and certainly within the Code of Practice’s guide of 4 months after the year end date”.
