Why Building Owners Should Review The Business Case For Facility Optimization
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Costs associated with managing real estate portfolios are often handled individually. For example, energy management may initially be approached as a way to reduce utility costs only. Similarly, building owners try to squeeze outsourced facility management contracts for savings. When handled in isolation, these strategies will limit the amount of achievable cost savings – leaving money on the table. Recent facility management advances have sought to optimize facilities more broadly, creating larger pools of costs to manage down. This Verdantix report investigates the potential savings that can be derived from facility optimization and why the default reaction of ‘squeeze facility management contracts’ may be counterproductive to achieving the largest savings possible.
Table of contentsWhy Building Owners Should Review The Business Case For Facility Optimization
Real Estate OPEX Cost Reduction Opportunities Are Concentrated Across A Few Categories
Legacy Facility Management Strategies Limit Potential Cost Savings
Facilities Optimization Opens Up Untapped Savings For Building Owners
Facility Optimization Management (FOM) Strategies Need Technology Applications To Bring The Required Data And Control Capabilities
Table of figuresFigure 1. Five Categories Comprise Over Three-Quarters Of Real Estate OPEX Budgets
Figure 2. More Progressive Saving Strategies Result In Higher Potential Savings