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| 3.6 Million-Square-Foot Office Portfolio |
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The Challenge |
The owner of a 3.6 million-square-foot national office portfolio, composed of 15 single-tenant, government-leased office facilities, needed a service partner who could provide highly efficient management and leasing services in each market where the properties are located. In addition, the properties require close monitoring and control of operating expenses due to the unique nature of the property lease agreements. |
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The Solution |
As part of a portfolio-specific management strategy, CB Richard Ellis evaluated the operating expenses and vendor contracts associated with each asset in the portfolio. In the first six months of the contract, we saved this client 6 percent in operating expenses portfolio-wide. Some of the more notable saving achievements occurred at the following properties:
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ASSET LOCATION |
SQUARE FEET |
TOTAL EXPENSE SAVINGS |
MAJOR SAVINGS BY ACCOUNT |
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New Jersey |
1 million |
19% |
Reduced elevator contract by 10% |
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Colorado |
73,000 |
17% |
Reduced HVAC contract by 43% |
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Washington, D.C. |
176,000 |
10% |
Reduced HVAC contract by 54% |
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California |
143,000 |
12% |
Reduced electricity expenses by 24% |
Based on a capitalisation rate of 8.7 percent, CB Richard Ellis will be successful in increasing the value of this portfolio by $3.4 million. |
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