The Role of Building Operations Professionals in Budgeting for Commercial Properties January 31, 2023 | By: CRE Insight Journal
Building operations professionals play a crucial role in budgeting for commercial properties. They are responsible for ensuring that a building runs efficiently and effectively while also controlling costs. In this post, we will discuss the responsibilities of building operations professionals when it comes to budgeting for commercial properties. We have also included some additional resources at the end of this post for further information.
- Maintenance and Repair Costs: Building operations professionals must budget for the maintenance and repair of a property. This includes routine maintenance, such as cleaning and landscaping, as well as more extensive repairs, such as fixing a leaky roof. The budget for maintenance and repair should be based on the age of the property, the type of materials used, and the expected life of the equipment.
- Energy Costs: Energy costs are a significant expense for any commercial property, and building operations professionals must budget for these costs. They must consider the cost of heating and cooling the building, as well as the cost of lighting and operating other equipment. Energy costs can be reduced by implementing energy-efficient technologies, such as LED lighting and programmable thermostats.
- Capital Improvements: Building operations professionals must also budget for capital improvements, such as upgrading HVAC systems or installing new elevators. These improvements can increase the value of the property, improve energy efficiency, and reduce maintenance costs over the long term.
- Personnel Costs: Personnel costs, such as salaries, benefits, and training, must also be budgeted for. Building operations professionals must ensure that they have enough staff to effectively operate and maintain the building. They must also budget for the training of staff to ensure that they are equipped to handle any challenges that may arise.
- Insurance: Building operations professionals must also budget for insurance, including property and liability insurance. Insurance protects the property and the tenants from unexpected events, such as fires or natural disasters.
In conclusion, building operations professionals play a crucial role in budgeting for commercial properties. They must consider maintenance and repair costs, energy costs, capital improvements, personnel costs, and insurance when creating a budget. A well-prepared budget helps ensure that a building runs efficiently and effectively, while also controlling costs.
Accounting for Building Engineers (Moyers)