Office service charges up 4.4%

MarketResearch:Service charges on office buildings increased last year by an average of 4.4 per cent to €63.55 per sq m (€5.90 per sq ft), according to an annual survey of charges conducted by Jones Lang LaSalle.

The increase was primarily the result of rises in the costs of cleaning, heating and air conditioning, building staff, and power and light. The most expensive components of the charges are cleaning costs (at €11.02 per sq m/€1.02 per sq ft) and security (€9.46 per sq m/€0.88 per sq ft).

The average service charge for buildings with air conditioning was €469.92 per sq m (€43.65 per sq ft), some 10 per cent more than the overall average for Dublin, says Dr Clare Eriksson, head of research at Jones Lang LaSalle.

The most expensive components for buildings with air conditioning are power and light costs (€13.36 per sq m/€1.24 per sq ft), heating and AC (€12.34 per sq m/€1.15 per sq ft) and cleaning costs (€11.21 per sq m/€1.04 per sq ft).

In terms of location, city centre offices with air conditioning were found to have the highest service charges, at €73.13 per sq m (€6.79 per sq ft), while smaller offices up to 2,500sq m (26,910sq ft) without air conditioning were the most expensive in terms of size.

"That is as one would expect; service charges reduce naturally as office sizes increase," said Dr Eriksson.

Buildings built between 1980 and 1990 with air conditioning had the highest services charges, averaging at €85.81 per sq m (€7.97 per sq ft). However, buildings erected between 2001 and 2004 without air conditioning incurred the lowest service charge levels at €50.19 per sq m (€4.66 per sq ft).

Averages service charges in Dublin are 28 per cent less than those in the UK where they are the equivalent of €87.97 per sq m (€8.17 per sq ft). The difference is accounted for mainly by lower costs in Dublin for general maintenance, heating and air conditioning, security, power and light, and sundry items.