Life Cycle Costing
Understanding the cost of owning a property delivers to an owner or operator clarity and validity around the expenditure forecasts. This is determined during the design, construction and operation life cycle phases.
A core element to the successful performance of a property asset for the owner, its tenants and managers requires accurate expenditure budgets developed from quality data and professional assessment.
The Opex forecast relates to the maintenance needs of a property and generally includes statutory and legislative costs and compliance requirements, proactive approaches to prolong the life expectancy of an asset and its services or reactive maintenance that may relate to issues that cannot be predicted, such as graffiti or vandalism.
The Capex forecast relates to a property's particular asset, normally plant and equipment, that need to be replaced due to life expiry, enhancement projects that may include lobby refurbishment, energy efficiency or projects to market a leasing opportunity.
We do this through a combination of client interaction, site review, historic data review, product knowledge, continual education and through the use of an experience-based benchmarking tool.
Forecasts are generated through the use of experience; industry cost modelling and deep appreciation of how property related assets perform over time.
These reviews are often combined with life cycle reviews to inform capital and operational budget forecasts.