OSCAR service charge analysis for 2009

Office OSCAR 2009 Service Charge Analysis for Offices

Office OSCAR 2009 – Service Charge Analysis for Offices

Foreword

Contents

I am delighted to be asked to write the

you with useful information. A significant

Foreword for this the 26th annual edition

effort has been made in its publication by

of Office OSCAR. Hermes Real Estate

the Jones Lang LaSalle team. I would like to

Investment Management has been a regular

thank on their behalf the contributors for the

contributor of data to Office OSCAR during

information and support they have provided.

this period and we place great store on our tenants being able to access information on

Introduction and Background

service charge costs. In this respect Office

Executive summary

4

OSCAR provides the market leading service

The database

5

of Jones Lang LaSalle, we are particularly grateful to the

charge benchmarking tool for tenants and

The sample structure

6

the data used in the production of Office OSCAR.

National average component service charges

10

Total service charge by building location and by building size

18

landlords alike.

Chris Taylor CEO Hermes Real Estate

The introduction of the Royal Institution of Chartered Surveyors’ Service Charge Code provides a greater uniformity in the way in which service charges are presented and I

Investment Management

Data Contributors In addition to the contributions of data from many clients following organisations for their major contribution to

Looking to the future 29 Definition of terms

31

Geographical areas 32

With thanks also to Broadgate Estates.

look forward to the updated Code which is due to be published in the Autumn 2011.

I trust you will find Office OSCAR provides

Office OSCAR 2009 – Service Charge Analysis for Offices

Executive summary

The database

Introduction and Background

This year’s principal findings

OSCAR was first published in 1983 and this is the 26th edition in the annual

• Average costs of running air conditioned buildings are £6.70 per sq foot, a

The database is split into two property types, air-conditioned and non air-

Statistical technique

conditioned. The ‘Definition of terms’ describes the principal cost categories series. We are grateful to our in-house clients and the important external

decrease of 3.5% over the previous year. The average cost of running a

contributors and their managing agents who have provided data to enable

non air conditioned building rose to £5.77 per sq foot, an increase of 5.4%

us to carry out our analysis.

and geographical regions defines where the properties are situated.

0.7 standard deviations from the arithmetic means. This is designed to Insurance Insurance costs are excluded from OSCAR for two reasons: Conventions

On the 1st April 2007 the Royal Institution of Chartered Surveyors Service

conditioned buildings has narrowed this year to 86% from circa 80% in

Charge Code was introduced. The service charge expenditure categories

the previous five years of the survey. This is the highest ratio since we

within the Code are a direct reflection of those contained within the

instigated the OSCAR analysis in 1983. The trend that we highlighted last

OSCAR reports produced prior to that date. Our analysis indicates that

year of landlords having to address obsolescence in older air conditioned

the large majority of major landlords and their agents have embraced the

stock is continuing. An example of this is the sustained, above the rate of

• secondly, there is little point comparing insurance costs without having

requirements of the Code, which has provided a more uniform presentation

inflation increase in expenditure on Mechanical and Electrical services on

regard to the breadth and quality of cover, together with the nature of

non air conditioned properties.

commission payments.

of service charge data to occupational tenants. We are currently working with the RICS in reviewing the Code and look forward to commenting further in our next publication.

• firstly, insurance premiums now rarely feature within service charges and are typically direct-charged to tenants instead.

location, size and air-conditioning upon cost. However, other important

relation to their own demised areas.

Roundings

• There is a continuing trend for tenants to require better quality of service in non air conditioned properties, bringing the standards closer to proportionate increase in spend in many heads of expenditure.

• The highest cost increase in air conditioned buildings is in respect of

variables influence cost such as hours of operation, levels of security,

Mechanical and Electrical (10.3%). We commented last year on the

reception services, number of lifts and in particular the qualitative standards

unusually large increase in site management resource costs; this year the

of management. These factors are the primary drivers that should be taken

figures have decreased and are in line with the trend analysis we have

into account when benchmarking against the spread of values displayed in

experienced in previous years.

this report.

• In line with market practice, OSCAR data is quoted excluding VAT. • The costs do not include the direct recharges borne by occupiers in

Interest

• The largest increases in spend on non air conditioned buildings are for Mechanical and Electrical (28.1%) and electricity (17.7%).

Rounding differences may occur due to the values published in Office OSCAR being displayed to a restrictive number of decimal places.

those received in air conditioned buildings, which is highlighted in the The data analysis within OSCAR primarily observes the influence of building

capture the middle 50% of values, assuming that the data has normal distribution.

from the previous year.

• The differential in running costs between air conditioned and non air

• The upper and lower limits quoted are calculated at plus and minus

To facilitate level benchmarking, we have elected to disregard any interest receipts included within the service charge reconciliations contributed to the dataset.

Exceptional Expenditure Exceptional Expenditure is excluded, allowing like-for-like comparison of base-level service charge costs.

• We have included an analysis of the IPD office rental index mapped against service charge changes. It is interesting to note that the rates

Benchmarking Approach

of change of air conditioned service charges have largely mirrored the office index over the last 4 years, whilst the service charge spend for

Office OSCAR is intended principally to assist in benchmarking and

non air conditioned space has been substantially in excess of the rental

forecasting service charge costs. However, buildings differ substantially

index levels. We shall keep this under review but it could be argued that

in terms of construction, age, layout, gross to net floor area ratio, staffing

in the increasingly competitive office rental market, landlords of modern

and security levels, hours of operation and standards of maintenance

air conditioned space were keen to keep their office service charges as

and management. All these factors must be taken into account when

competitive as possible. However in the case of older non air conditioned

considering the data within OSCAR. To assist, we provide what may be

stock, landlords, because of the obsolescence point detailed earlier, have

regarded as an acceptable range in service charge costs. This is done

had to undertake essential service charge expenditure over and above

by quoting upper and lower limits that capture the middle 50% of sample

inflation to ensure buildings provide an acceptable level of service.

values. However, in certain circumstances, there may be good reason for bona fide costs to fall outside these boundaries.

Office OSCAR 2009 – Service Charge Analysis for Offices

The sample structure Chart 1

Chart 3

Building location profile - year end 2008

Building size profile - year end 2008

A/C Buildings Non A/C Buildings All Buildings

A/C Buildings Non A/C Buildings All Buildings

Location

2008 2007

Change from 2007

2008

2007

Change from 2007 2008 2007

Change from 2007

Sq ft 2008 2007

Change from 2007 2008 2007

Change from 2007 2008 2007

Change from 2007

City and Docklands

46

26%

39 30%

7

12

13%

9

14%

3

58

22%

48

24%

10

24,999 sq ft and under 38 21%

19

14%

19

45

51% 26 39%

19

83 31%

45 23% 38

West End

47

26%

42 32%

5

24

27%

18

27%

6

71

26%

60

30%

11

25,000 - 39,999 sq ft

33

18%

24

18%

9

16

18%

14

21%

2

49

18%

38

19%

11

Greater London

12

7%

8 6%

4

8

9%

4

6%

4

20

7%

12

6%

8

40,000 - 99,999 sq ft

59

33%

46

35%

13

19

21%

21

32%

-2

78

29%

67

34%

11

South East

30

17%

15 11%

15

13

15%

7

11%

6

43

16%

22

11%

21

100,000 sq ft and above

49

27%

43

33%

6

9

10%

5

8%

4

58

22%

48

24%

10

132 100%

47

89

100%

66 100%

23

268

100%

198 100%

70

Midlands

17

9%

11 8%

6

12

13%

11

17%

1

29

11%

22

11%

7

Outer Regions

27

15%

17 13%

10

20

22%

17

26%

3

47

18%

34

17%

13

179 100%

132 100%

47

89

100%

66

100%

23

268

100%

198

100%

70

The 2009 OSCAR database contains:

• Increase in sample size of 70 properties (an increase of 35%)

• 268 buildings

• Largest increase in sample is for buildings in the South East and those

179 100%

under 25,000 sq ft.

• 179 air-conditioned buildings

• Fewer buildings are over 30 years old and more are in the 20-29 year range

• 89 non air-conditioned buildings Chart 2

Chart 4

Building location profile by %

Building size profile by %

50

2008 - A/C

70

2008 - A/C

2007 - A/C

2007 - A/C 45

2008 - Non A/C 2007 - Non A/C

40

2007 - Non A/C

50

35

30

40

Sample Size

Sample Size

2008 - Non A/C

60

25

20

15

30

20

10 10 5

0

City & Docklands

West End

Greater London

South East Location

Midlands

Outer Regions

0

24,999 sq ft and under

25,000 - 39,999 sq ft

40,000 - 99,999 sq ft Building Size

100,000 sq ft and above

Office OSCAR 2009 – Service Charge Analysis for Offices

Chart 5

Chart 7

Building age profile - year end 2008

National average component service charges - year end 31/12/2008

A/C Buildings

Age 2008 2007

Non A/C Buildings

Change from 2007 2008 2007

All Buildings

Change from 2007 2008 2007

Change from 2007

A/C Buildings Non A/C Buildings

2008

2007

Change from 2007 2008 2007

Change from 2007

£psf %

£psf %

£psf

%

£psf %

£psf %

£psf

0 - 9 Years

65

36%

52

39%

13

15

17%

8

12%

7

80

30%

60

30%

20

Management Fees

0.61 9.0

0.59 8.4

0.02

3.5

0.59 10.2

0.50 9.2

0.09 17.3

10 - 19 Years

63

35%

45

34%

18

27

30%

19

29%

8

90

34%

64

32%

26

Site Management Resources

0.53 7.9

0.67 9.7

-0.14 -20.9

0.48 8.4

0.74 13.6

-0.26 -34.9

20 - 29 Years

39

22%

16

12%

23

27

30%

8

12%

19

66

25%

24

12%

42

Electricity

0.93 13.8

1.03 14.8

-0.10 -9.8

0.62 10.7

0.53 9.6

0.09 17.7

30 Years Plus

12

19

14%

-7

20

22%

31

47%

-11

32

12%

50

25%

-18

Gas

0.28 4.1

0.29 4.2

-0.02 -5.8

0.34 6.0

0.31 5.7

0.03 9.6

Total

179

132 100%

47

89

100%

66

100%

23

268

100%

198

100%

70

Water

0.12 1.8

0.11 1.6

0.01

6.8

0.11 1.9

0.12 2.3

-0.01 -10.1

Security

1.28 19.1

1.42 20.5

-0.14 -10.2

0.79 13.7

0.75 13.7

0.04 5.5

Cleaning & Environmental

0.81 12.0

0.79 11.3

0.02

0.82 14.1

0.74 13.5

0.08 10.7

7% 100%

Chart 6

Building age profile by % 70

2.7

%

M&E Services

1.47 22.0

1.34 19.3

0.14 10.3

1.22 21.2

0.96 17.5

0.27 28.1

Lifts and Escalators

0.22 3.3

0.24 3.5

-0.02 -8.0

0.24 4.1

0.21 3.8

0.03 15.1

Fabric Repairs and Maintenance

0.46 6.8

0.46 6.7

-0.01 -1.2

0.55 9.5

0.61 11.2

-0.06 -10.3

TOTAL

6.70 100.0

6.94 100.0

-0.24 -3.5

5.77 100.0

5.47 100.0

0.30 5.4

2008 - A/C 2007 - A/C 2008 - Non A/C

60

2007 - Non A/C

50

Sample Size

40

30

20

10

0

0 - 9 Years

10 - 19 Years

20 - 29 Years

30 Years Plus

Age

Office OSCAR 2009 – Service Charge Analysis for Offices

National average component service charges

The average figures for service charges are:

sample, changes in the relative consumption (possibly relating to changes

M and E Services

in the weather) or the fact that air conditioned buildings are more likely to - Air conditioned building costs have fallen by 3.5% to £6.70 per sq ft.

be subject to sophisticated purchasing policies, which bundle properties

This category has shown the largest increase in both air conditioned and

- Non air-conditioned building costs have risen slightly to £5.77 per sq ft

together for best commercial advantage.

non air conditioned properties, a 10% and a 28% increase respectively. The

from £5.47 per sq ft, a 5.4% increase, the fifth consecutive year there has

In comparison the costs of gas and water have been relatively stable. Histor-

trend analysis shows there is an ever decreasing gap between the costs

been a rise.

ically costs for gas in air conditioned and non air conditioned properties have

for air conditioned and non air conditioned buildings. As highlighted in last

shadowed each other. However this year costs of gas for non air conditioned

year’s “Looking to the Future” analysis, to meet the increasingly significant

By way of comparison the Retail Price Index increased by 1% during the

buildings have risen at a slightly higher rate, which we believe reflects the

green agenda, costs of maintenance will continue to rise. In addition as plant

same period. The Trend Graphs show the national average costs under

older less efficient stock within the sample of properties. The costs of water

comes closer to the end of its useful life, in older non air conditioned stock,

each service charge heading since 1997 mapped against the RPI index.

have remaind relatively flat when compared with previous years.

the costs of repair will continue to increase disproportionately.

Analysis of cost categories

Security

Lifts and escalator maintenance

Air conditioned and non air conditioned properties show close parity in the

Following a stepped increase in 2001 following terrorist activity at that time,

Costs have fallen by 8% for air conditioned buildings and risen by circa 15%

following heads of expenditure:

costs have generally risen in line with inflation on air conditioned properties.

for non air conditioned buildings. In looking at the trend analysis for non air

The year on year changes in security costs of non air conditioned buildings

conditioned building the figure in 2006 seems to be out of the norm and the

• Management fees

has been slightly more erratic perhaps indicating more ad hoc investment in

overall cost over the last ten years remains on or about 20 pence per sq ft.

• Site Management Resources

sophisticated security systems such as CCTV and security barrier systems.

We shall monitor this closely in next year’s report.

• Gas

This year spend on air conditioned properties has fallen from £1.42 per sq

• Water

ft to £1.28 per sq ft which could be reflective of a lack of spend on these

• Cleaning and environmental

items during the subject year. For non air conditioned buildings costs have

• Lifts and escalators

increased by 5.5% and this follows the trend since 2001 where expenditure

As stated above this is the one category where costs tend to be higher

has just been above inflation.

for non air conditioned buildings. This is reflective in the higher costs of

Air conditioned buildings cost more in terms of:

Fabric repair and maintenance

maintaining older buildings but the costs per square foot seems to have Cleaning and environmental

• Electricity

stabilised over the last three years of the sample at circa 60 pence per square foot.

• Security

The trend graphs reveal that costs have generally tracked inflation since

• M and E Services

1997. This is again shown on air conditioned buildings with a 3% increase

Site management resources

over the previous year. Costs have risen at a greater rate on non air conNon air conditioned buildings cost more in terms of: • Fabric repair and maintenance.

ditioned buildings by 11% this year. This increase could be due to the less

After a steady period of cost increases over the last six years for air condi-

efficient design of old non air conditioned stock and the different sample of

tioned properties there has been a decrease this year. The reasons for this

buildings considered this year.

are difficult to judge but it may be that the increasing use of technology has resulted in fewer staff being employed within the properties. This will have

Our brief observations on each of the cost categories are as follows:

to be carefully monitored in future years. We commented in the previous year’s Office OSCAR that the spike in costs under this heading for non air

Utilities

conditioned properties needed to be treated with caution and this year’s figure appears to take us back to the slowly rising trend we have noted over

It is counter intuitive that the average costs of electricity for air conditioned

the previous years.

buildings have decreased whilst those for non air conditioned properties have increased since last year. This may be explained by changes in the

10

11

Office OSCAR 2009 – Service Charge Analysis for Offices

Chart 8

Chart 9

National average component service charges

National average component service charges by % 25.00

1.60

1.40

2008 - A/C

2008 - A/C

2007 - A/C

2007 - A/C

2008 - Non A/C

2008 - Non A/C

2007 - Non A/C

2007 - Non A/C 20.00

Service Charge PSF (ÂŁ)

1.20

1.00

15.00

0.80

10.00 0.60

0.40 5.00

0.20

Lif ts an dE sc Fa ala br tor ic s Re pa irs an dM ain ten an ce

Se rvi ce s M& E

En vir on me nta l

Se cu rity

Cl ea nin g&

W ate r

Ga s

El ec tric ity

Ma na ge me nt

Lif ts an dE sc Fa ala br tor ic s Re pa irs an dM ain ten an ce

Se rvi ce s M& E

En vir on me nta l

Se cu rity

Cl ea nin g&

W ate r

Ga s

El ec tric ity

Fe Si te es Ma na ge me nt Re so ur ce s

Ma na ge me nt 12

Fe Si te es Ma na ge me nt Re so ur ce s

0.00

0.00

13

Office OSCAR 2009 – Service Charge Analysis for Offices

Chart 10

Chart 11

Chart 5

National average A/C cost category trends

Chart 5 National average non A/C cost category trends

Management fee

Electricity

Security

M&E Services

Site management resources

Gas

Cleaning & Environmental

Lifts and Escalators

Water

JLL RPI Index

Fabric repairs and maintenance

Management fee

Electricity

Security

M&E Services

Site management resources

Gas

Cleaning & Environmental

Lifts and Escalators

Water

1.6

JLL RPI Index

Fabric repairs and maintenance

1.5

1.5 1.4 1.4 1.3

1.3

1.2

1.2

1.1

1.1

1.0

1.0

0.9

0.9 0.8

0.8

0.7

0.7

0.6

0.6

0.5

0.5

0.4

0.4

0.3

0.3

0.2

0.2

0.1 0.0

0.1 1997

1998

1999

2000

2001

2002

2003 OSCAR Year

14

2004

2005

2006

2007

2008

0.0

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

OSCAR Year

15

Office OSCAR 2009 – Service Charge Analysis for Offices

Chart 12

Chart 14

Service charge trend indexation date 1983-2008

Service charge trend absolute data 1983-2008

83

RPI @ December

86.9 90.9 96.0 99.6 103.3 110.3 118.8 129.9 135.7 139.2 141.9 146.0 150.7 154.4 160.0 164.4

84

85

86

87

88

89

90

91

92

93

94

95

96

97

98

99

00

01

02

03

04

05

06

07

08

83

84

85

86

87

88

89

90

91

92

93

94

95

96

97

98

99

00

01

02

03

04

05

06

07

08

167.3 172.2 173.4 178.5 183.5 189.9 194.1 202.7 210.9 212.9

A/C Cost

3.02 2.79 3.07 3.14 3.64 4.07 4.48

4.58 5.26 5.06 5.33 4.90 4.53 4.22 4.41 4.56

4.78 5.00 5.22 5.96 6.19 6.43 6.26 6.86 6.94 6.70

4.6% 5.6% 3.7% 3.7% 6.8% 7.7% 9.3% 4.5% 2.6% 1.9% 2.9% 3.2% 2.5% 3.6% 2.8%

1.8% 2.9% 0.7% 2.9% 2.8% 3.5% 2.2% 4.4% 4.0% 0.9%

Non A/C Cost

1.87 1.91 2.10 2.30 2.52 2.66 3.13

3.50 3.72 3.54 3.64 3.73 3.07 3.01 3.08 3.21

3.34 3.46 3.69 3.97 3.59 4.41 5.11 5.45 5.47 5.77

JLL RPI Index Base 1983 100.0 104.6 110.5 114.6 118.9 126.9 136.7 149.5 156.2 160.2 163.3 168.0 173.4 177.7 184.1 189.2

192.5 198.2 199.5 205.4 211.2 218.5 223.4 233.3 242.7 245.0

Cost Differential

1.15 0.88 0.97 0.84 1.12 1.41 1.35

1.08 1.54 1.52 1.69 1.17 1.46 1.21 1.33 1.35

1.44 1.54 1.53 1.99 2.60 2.03 1.15 1.41 1.47 0.93

Non A/C : A/C Cost Ratio 62% 68% 68% 73% 69% 65% 70%

76% 71% 70% 68% 76% 68% 71% 70% 70%

70% 69% 71% 67% 58% 68% 82% 79% 79% 86%

% Change RPI

-

A/C Cost Index

100.0 92.4 101.7 104.0 120.5 134.8 148.3 151.6 174.2 167.5 176.5 162.2 150.0 139.7 146.0 151.0

158.3 165.5 172.8 197.3 205.0 213.0 207.3 227.1 229.8 221.9

Non-A/C Cost Index

100.0 102.1 112.3 123.0 134.8 142.3 167.4 187.2 199.0 189.3 194.7 199.5 164.2 161.0 164.7 171.7

178.6 185.1 197.4 212.3 192.0 235.7 273.3 291.5 292.7 308.5

10 Year Average Differential

1.19 1.24 1.27 1.32 1.36 1.38 1.37

1.38 1.43 1.42 1.47 1.56 1.65 1.62 1.64 1.65 1.61

167.3 189.6 197.9 182.7 163.1 162.8 167.1 179.9 197.2 189.7

10 Year Average Ratio

69% 70% 71% 71% 71% 71% 71%

71% 70% 70% 70% 69% 68% 70% 70% 71% 73%

IPD Office Rent Index

100.0 102.9 109.2 122.0 152.0 190.2 217.6 218.7 186.1 148.2 128.0 126.6 125.8 129.5 143.1 156.8

IPD Office Rental Growth %

2.4

2.9

6.1

11.7

24.6 25.2 14.4

0.5

-14.9 -20.4 -13.6 -1.1 -0.6 2.9

10.5 9.6

6.7

13.3 4.4

-7.7

-10.7 -0.2 2.6

7.7

9.6

Chart 13

Chart 15

Chart 5 charge trend indexation graph 1983-2008 Service

Service charge trend indexation graph 1983-2008 7

350 JLL RPI index base 1983

Non A/C: A/C cost ratio

A/C cost index

A/C cost

Non - A/C cost index

300

5

200

4

150

3

100

2

50

1

83

84

85

86

Non A/C cost

6

IPD office rent index

250

0

87

88

89

90

91

92

93

94

95

96

97

OSCAR Year

16

-3.8

98

99

00

01

02

03

04

05

06

07

08

0

Cost differential

83

84

85

86

87

88

89

90

91

92

93

94

95

96

97

98

99

00

01

02

03

04

05

06

07

08

OSCAR Year

17

Office OSCAR 2009 – Service Charge Analysis for Offices

Total service charge by building location and by building size Total service charge by location

Differential between air conditioned and non air conditioned costs

The trend for average service charges for buildings in the City and West End

For any given location

to rise at a higher rate than for those for the rest of the country has been reversed this year. In the previous year air conditioned buildings were 38%

It is interesting to note that the trend that we have previously identified of

more expensive to run in the City and West End than the rest of the country

the narrowing of costs between air conditioned and non air conditioned

and 62% for non air conditioned buildings. This year the figures have

buildings has continued this year across all sectors with the exception of

reduced to 24% and 46% respectively.

those properties in Greater London. This is partly the product of the non air conditioned buildings being of older stock with a comparatively higher spend

The West End is again more expensive than the City and Docklands for air

on fabric repairs and maintenance than air conditioned properties.

conditioned buildings, whilst the City and Docklands are more expensive for non air conditioned buildings.

For any given size

Using weighted averages geared to sample size:

The clear differential we have noted in previous reports between air

conditioned and non air conditioned building continues to widen. The

Central London Other Locations

weighted average in the two size categories over 40,000 sq ft shows a A/C

£7.54 per sq ft

£6.07 per sq ft

differential of £1.33 per sq ft as opposed to a figure of £1.23 per sq ft in the

Non A/C

£7.10 per sq ft

£4.87 per sq ft

previous year.

Excluding buildings in Greater London, there is uniformity between the

National average

upper and lower limits of service charge costs of £4 per sq ft (see charts 18 and 19) for air conditioned buildings. For non air conditioned buildings,

Air conditioned costs exceed non air conditioned costs by 93 pence per sq

there is a far higher variation between the upper and lower limits.

ft this year compared with £1.47 per sq ft for the previous year. Whilst the ratio between air conditioned and non air conditioned space has remained

Total service charge by size

at about 80% for the last four years this has narrowed to circa 86% this year.

We believe this is a reflection of the more aged stock for non air conditioned

The costs of running smaller buildings of under 25,000 sq ft have fallen

space with a comparatively higher spend in keeping these buildings in a

back this year for both air conditioned and non air conditioned buildings. In

satisfactory standard of condition.

contrast the costs of running buildings over 100,000 sq ft have risen for both building types.

18

Office OSCAR 2009 – Service Charge Analysis for Offices

Chart 16

Chart 17

Component service charge by building location - Year end 2008

Component service charge by building size - Year end 2008 A/C Buildings

A/C Buildings

City & Docklands

West End

Greater London

South East

Midlands

Outer Regions

24,999 sq ft and under 25,000 - 39,999 sq ft 40,000 - 99,999 sq ft 100,000 sq ft and above

£psf

£psf

£psf

£psf

£psf

£psf

£psf

£psf

£psf

£psf

Management Fees

0.68

0.67

0.74

0.50

0.43

0.53

Management Fees

0.49

0.68

0.57

0.67

Site Management Resources

0.63

0.54

1.12

0.57

0.29

0.62

Site Management Resources

0.45

0.58

0.60

0.54

Electricity

1.06

0.91

0.90

0.90

0.71

0.92

Electricity

0.90

1.04

0.81

1.19

Gas

0.27

0.24

0.34

0.26

0.25

0.35

Gas

0.20

0.25

0.27

0.33

Water

0.11

0.13

0.09

0.12

0.10

0.13

Water

0.10

0.14

0.11

0.13

Security

1.60

1.60

1.02

0.84

1.04

0.92

Security

1.07

1.67

1.35

1.64

Cleaning & Environmental

0.79

1.04

0.74

0.65

0.78

0.67

Cleaning & Environmental

0.69

0.80

0.73

0.95

M&E Services

1.56

1.77

1.79

1.36

0.84

1.20

M&E Services

1.42

1.60

1.46

1.51

Lifts and Escalators

0.30

0.24

0.20

0.12

0.14

0.26

Lifts and Escalators

0.18

0.29

0.20

0.30

Fabric Repairs and Maintenance

0.30

0.62

0.63

0.47

0.37

0.41

Fabric Repairs and Maintenance

0.42

0.61

0.42

0.64

TOTAL

7.30

7.78

7.58

5.79

4.94

6.00

TOTAL

5.92

7.64

6.52

7.91

Non A/C Buildings

Non A/C Buildings

19

Outer Regions

24,999 sq ft and under 25,000 - 39,999 sq ft 40,000 - 99,999 sq ft 100,000 sq ft and above

City & Docklands

West End

Greater London

South East

Midlands

£psf

£psf

£psf

£psf

£psf

£psf

Management Fees

0.56

0.73

0.43

0.31

0.39

0.81

Management Fees

0.42

0.45

0.47

0.60

0.31

0.50

0.58

0.38

£psf

£psf

£psf

£psf

Site Management Resources

0.51

0.59

0.61

0.81

0.39

0.42

Site Management Resources

Electricity

0.75

0.68

0.67

0.55

0.36

0.65

Electricity

0.55

0.75

0.58

0.65

Gas

0.54

0.39

0.28

0.19

0.32

0.31

Gas

0.17

0.35

0.33

0.53

Water

0.13

0.11

0.07

0.12

0.11

0.12

Water

0.13

0.10

0.11

0.16

0.68

1.42

0.55

1.19

Security

1.52

1.02

0.91

0.30

0.77

0.38

Security

Cleaning & Environmental

0.83

0.83

0.69

0.65

0.69

1.04

Cleaning & Environmental

0.79

0.73

0.85

0.87

M&E Services

1.49

1.73

0.88

0.73

0.81

1.17

M&E Services

1.20

1.06

0.95

1.33

Lifts and Escalators

0.29

0.29

0.16

0.11

0.20

0.28

Lifts and Escalators

0.14

0.23

0.25

0.27

0.42

0.63

0.78

0.33

4.81

6.21

5.46

6.31

Fabric Repairs and Maintenance

0.56

0.65

0.22

0.33

0.62

0.65

Fabric Repairs and Maintenance

TOTAL

7.18

7.02

4.92

4.09

4.65

5.83

TOTAL

20

12.00

10.00

9.80 8.76

8.21

7.91

7.64

6.52

Office OSCAR 2009 – Service Charge Analysis for Offices

£ per sq ft

8.00

9.81

Chart 18

Chart4.00 20

Total service charge by building location: a/c buildings (spread of middle 50% of service charge costs)

Total service charge by building size: a/c building (spread of middle 50% of service charge costs)

6.01 5.47 4.27

3.62

0.00

9.99 8.54

8.00 7.30 6.00 5.02

7.78

8.15

Lower Limit

8.00

7.77

7.58

£ per sq ft

9.58

10.00

Mean

6.97

6.62

6.00

5.79

5.58

6.00

24,999 sq ft and under

3.81

4.00

3.85 2.91

2.00

25,000 - 39,999 sq ft

40,000 - 99,999 sq ft

Mean

100,000 sq ft and above

9.81

9.80 8.76

8.21

7.91

7.64

6.52

5.92

6.01 5.47

4.94

4.00

Upper Limit

Lower Limit

12.00 Upper Limit

£ per sq ft

5.92

2.00

12.00

10.00

6.00

4.27 3.62

Upper Limit

2.00

Mean Lower Limit

0.00

City & Docklands

West End

Greater London

South East

Midlands

0.00

Outer Regions

24,999 sq ft and under

25,000 - 39,999 sq ft

40,000 - 99,999 sq ft

100,000 sq ft and above

OSCAR Year

Chart 19

Chart 21

Total service charge by building location: Non a/c buildings (spread of middle 50% of service charge costs)

Total service charge by building size: non a/c buildings (spread of middle 50% of service charge costs)

12.00

14.00 Upper Limit

Upper Limit

10.00

12.00

Mean

9.32

8.96

8.71

Lower Limit

Lower Limit

10.00

7.02 6.05

6.00 5.03

5.07

4.00

5.62

4.92

4.09

3.79

2.55

2.00

5.86

5.83

£ per sq ft

£ per sq ft

8.00 7.18

8.53

8.00 7.04

4.65

6.00

3.44

Chart 21 4.00

2.95

Mean

7.98

7.42

6.21

6.31

5.46

4.81

4.64 3.49

3.89

Total service charge by building size: non a/c buildings (spread of middle 50% of service charge costs) 2.59 2.00

14.00 0.00

City & Docklands

West End

Greater London

South East

Midlands

0.00

Outer Regions

12.00

OSCAR Year

24,999 sq ft and under

25,000 - 39,999 sq ft

40,000 - 99,999 sq ft OSCAR Year

Upper Limit 100,000 sq ft and above Mean Lower Limit

21

£ per sq ft

10.00 8.53

8.00 7.04 6.00

6.21

7.42

7.98 6.31

22

Office OSCAR 2009 – Service Charge Analysis for Offices Chart 22

Chart 24

Component service charge City & Docklands: a/c buildings (spread of middle 50% of service charge costs)

Component service charge Greater London: a/c buildings (spread of middle 50% of service charge costs)

3.60

3.60

3.40

3.20

Mean

3.00

2.80

Mean

2.60

2.60

Lower Limit

2.40

2.40

Cl ea nin g&

W ate r

Ga s

Sit eM an ag em en tR es ou rce s

Ma na ge me nt

El ec tric ity

0.00

0.30

0.56

0.40

0.34 0.19

0.20

0.03

0.52

0.50

0.54

0.28 0.20 0.12

0.13 0.09 0.06

0.00

Chart 23

Chart 25

Component service charge West End: a/c buildings (spread of middle 50% of service charge costs)

Component service charge South East: a/c buildings (spread of middle 50% of service charge costs)

0.31

3.60

3.60 3.40

3.40

Upper Limit

3.20 3.00 2.80

Mean

3.00

Mean

Lower Limit

2.80

Lower Limit

2.60

2.48

2.40

2.37

2.20

0.20

0.20

0.57

0.46

0.38

0.30

0.26 0.07

0.00

0.47

0.39 0.20 0.12 0.03

0.21 0.12 0.02

0.15

0.12

Fa br ic Re pa ir

0.50 0.32

0.40

0.82

0.75

0.65

Lif ts an dE sc ala tor s

0.60

0.84

Se rvi ce s

0.68

El ec tric ity

0.62

0.90

0.84

M& E

1.00

Sit eM an ag em en tR es ou rce s

W ate r

Ga s

El ec tric ity

Sit eM an ag em en tR es ou rce s

Ma na ge me nt

0.00

0.24 0.11

0.23 0.13 0.04

0.06

Fa br ic Re pa ir

0.24

Lif ts an dE sc ala tor s

0.20

0.31

0.37

0.47

0.43

0.42

Se rvi ce s

0.40

0.54

M& E

0.44

0.77

0.91

0.80

0.73

En vir on me nta l

0.67

0.60

1.05

0.91

Se cu rity

0.80

1.36

1.20

1.18

1.04

0.90

Cl ea nin g&

1.00

1.53

1.42

1.40

1.39

1.20

1.60

Ma na ge me nt

1.40

1.62

1.97

1.80

En vir on me nta l

1.60

1.60

1.77

2.00

Se cu rity

1.80

£ per sq ft

2.00

Cl ea nin g&

2.20

W ate r

2.40

Upper Limit

3.20

Ga s

2.60

£ per sq ft

0.63

Fa br ic Re pa ir

0.10

0.30 0.12

0.74

0.60

Lif ts an dE sc ala tor s

0.18 0.11 0.05

0.56

0.96

0.74 0.58

Se rvi ce s

0.27

0.48

Se cu rity

0.33

0.46

0.90

Cl ea nin g&

0.44

W ate r

0.34

0.20

0.53

Sit eM an ag em en tR es ou rce s

0.40

0.63

0.79

1.02 0.90

0.82

Ma na ge me nt

0.68

0.60

0.90

0.90

1.44

1.27

1.12

1.00 0.80

Lif ts an dE sc ala tor s

0.80

0.93

0.95

1.52

1.42

1.40 1.20

1.12

1.06

En vir on me nta l

1.02

1.00

Se cu rity

1.20

Se rvi ce s

1.40

1.79

1.60

1.56

Fa br ic Re pa ir

1.59

1.80

Ga s

1.60

M& E

1.60

2.13

2.00

M& E

1.80

2.20

En vir on me nta l

£ per sq ft

2.16

2.00

El ec tric ity

2.30

2.20

23

Upper Limit

3.00

Lower Limit

2.80

£ per sq ft

3.40

Upper Limit

3.20

24

Office OSCAR 2009 – Service Charge Analysis for Offices Chart 26

Chart 28

Component service charge Midlands: a/c buildings (spread of middle 50% of service charge costs)

Component service charge City & Docklands: non a/c buildings (spread of middle 50% of service charge costs) 3.60

3.60

3.00

Mean

3.00

2.80

Lower Limit

2.80

2.40

2.40

2.20

2.20

2.00

2.00

1.40

1.45

1.40

2.39

2.26

1.52

1.49

1.80 1.60 1.40

1.40

1.20

0.40 0.20

0.73 0.51

Ga s

Sit eM an ag em en tR es ou rce s

Cl ea nin g&

Ma na ge me nt

0.06

Chart 29

Component service charge Outer Regions: a/c buildings (spread of middle 50% of service charge costs)

Component service charge West End: non a/c buildings (spread of middle 50% of service charge costs)

0.15

3.60

3.40

3.40

Upper Limit

3.20 3.00

Mean

2.80

Lower Limit

3.00

Mean

2.80

Lower Limit

2.40

2.40

2.20

2.20

2.00

2.00

1.75

1.65

1.60

0.50 0.29 0.08 Lif ts an dE sc ala tor s

Se rvi ce s

0.20

0.19 0.11 0.02

0.10

0.00

0.83

0.65

0.14

Fa br ic Re pa ir

0.39

0.31

1.16

0.93

M& E

0.33

1.14

0.52

En vir on me nta l

0.20

0.59

0.68

Se cu rity

0.40

0.68

Cl ea nin g&

0.13

0.46

0.85

W ate r

0.03

0.60

1.02

Ga s

Ga s

El ec tric ity

Sit eM an ag em en tR es ou rce s

0.26

0.19

0.73

1.05

El ec tric ity

0.11

0.00

Ma na ge me nt

0.22 0.13 0.04

0.80

Sit eM an ag em en tR es ou rce s

0.35

0.41

1.00

Ma na ge me nt

0.32

0.48

0.39

Fa br ic Re pa ir

0.20

0.20

0.58

0.49

0.68

0.65

Se rvi ce s

0.53

0.40

1.73

1.60

1.00

0.67

0.62

1.84

1.80

1.20

0.95

M& E

0.60

En vir on me nta l

0.80

0.92

0.92

0.92

Se cu rity

0.86

1.20

Cl ea nin g&

1.00

2.53

1.40

1.35

1.20

Lif ts an dE sc ala tor s

1.40

£ per sq ft

2.60

1.80

Upper Limit

3.20

2.60

W ate r

£ per sq ft

0.56

0.53 0.29

Chart 27

3.60

0.71

0.21 0.13 0.06

0.17

0.10

0.93

0.83 0.46

0.29

0.00

0.00

0.65 0.54

En vir on me nta l

0.56 0.38

0.75

Se cu rity

0.74

0.60

0.37

0.26 0.14 0.01

0.90

0.80

0.79

Fa br ic Re pa ir

0.18 0.10 0.03

Lif ts an dE sc ala tor s

0.29

Cl ea nin g&

Ma na ge me nt

Sit eM an ag em en tR es ou rce s

0.00

0.84

0.78

Se rvi ce s

0.20

0.43 0.25 0.07

0.38

0.38 0.29 0.20

1.20

1.00

0.43

Se cu rity

0.43 0.25

0.63

W ate r

0.40

0.71

Ga s

0.62

El ec tric ity

0.60

1.13

M& E

0.80

En vir on me nta l

1.00

1.04

El ec tric ity

1.03

W ate r

1.20

25

Lower Limit

Fa br ic Re pa ir

1.60

Mean

Lif ts an dE sc ala tor s

£ per sq ft

2.60

2.60

1.80

Upper Limit

3.20

Se rvi ce s

3.20

£ per sq ft

3.40

Upper Limit

M& E

3.40

26

Office OSCAR 2009 – Service Charge Analysis for Offices Chart 30

Chart 32

Component service charge Greater London: non a/c buildings (spread of middle 50% of service charge costs)

Component service charge Midlands: non a/c buildings (spread of middle 50% of service charge costs)

3.60

3.60

3.40

3.40

3.20

3.00

Mean

2.80

Mean

2.80

2.60

Lower Limit

Lower Limit

2.60

2.40

2.40

2.20

2.20

2.00

2.00

1.40

0.52

0.39 0.23

0.36

0.32

0.13

0.11

0.30 0.20 0.10

0.22

0.16 0.11 0.05

Se cu rity

Fa br ic Re pa ir

0.00

0.62 0.45

0.43

En vir on me nta l

0.59

W ate r

0.20

0.55

0.81

0.69

Cl ea nin g&

Cl ea nin g&

Lif ts an dE sc ala tor s

El ec tric ity

Ma na ge me nt

Sit eM an ag em en tR es ou rce s

0.00

0.17

0.10

0.51 0.39 0.26

0.40

0.33 0.22 0.11

0.21 0.16 0.10

Se rvi ce s

0.18

0.77

0.60

0.57

0.11 0.07 0.03

0.95

0.80

0.69

M& E

0.20

1.00

0.88

0.41

0.39 0.28

En vir on me nta l

0.43 0.35

0.62

Se cu rity

0.40

0.67

0.61

W ate r

0.52

Ga s

0.60

0.97

Ga s

0.91

0.80

Chart 31

Chart 33

Component service charge South East: non a/c buildings (spread of middle 50% of service charge costs)

Component service charge Outer Regions: non a/c buildings (spread of middle 50% of service charge costs)

3.60

0.05

3.60

3.40

3.40

Upper Limit

3.20

Upper Limit

3.20

3.00

Mean

3.00

Mean

2.80

Lower Limit

2.80

Lower Limit

2.00

2.00

1.40 1.20

0.33 0.04

0.40

0.31

0.24

0.20

0.16

0.13

0.00

0.65 0.53 0.38

0.19 0.12 0.06

0.09

0.39

0.35

0.50 0.28 0.06

0.00

En vir on me nta l

Lif ts an dE sc ala tor s

Se rvi ce s

0.01

0.22 0.11 0.00

0.83

El ec tric ity

0.29

1.13

0.65

0.60 0.42

Sit eM an ag em en tR es ou rce s

0.35

M& E

0.19 0.08

0.61

0.60

1.17

1.04

0.81

0.80

0.73

0.65

Fa br ic Re pa ir

0.30

0.19 0.12 0.04

En vir on me nta l

0.31

0.21

Se cu rity

Ma na ge me nt

Sit eM an ag em en tR es ou rce s

0.00

0.36

Cl ea nin g&

0.31 0.16

0.20

El ec tric ity

0.40

0.58

0.55

0.45

W ate r

0.60

0.96

0.88

0.81

0.80

1.14

1.00

Se cu rity

1.16

1.00

Cl ea nin g&

1.26

1.20

1.49

Ma na ge me nt

1.40

1.72

1.60

W ate r

1.60

1.94

1.80

Ga s

1.80

0.18

Fa br ic Re pa ir

2.20

Lif ts an dE sc ala tor s

2.40

2.20

Se rvi ce s

2.40

M& E

2.60

£ per sq ft

2.60

Ga s

£ per sq ft

1.20

1.18

Si te Ma na ge me nt Re so ur ce s

1.04

1.00

1.31

1.20

1.19

El ec tric ity

1.19

Ma na ge me nt

1.24

1.20

1.60

Fa br ic Re pa ir

1.40

1.80

Lif ts an dE sc ala tor s

1.60

Se rvi ce s

1.80

M& E

£ per sq ft

£ per sq ft

3.00

27

Upper Limit

3.20

Upper Limit

28

Office OSCAR 2009 – Service Charge Analysis for Offices

Looking to the Future

Energy

M&E Services

Wholesale prices have fallen from the peak of 2008 but have returned to

Annual maintenance costs have remained flat as a direct result of the finan-

a general upward trend with occasional volatile variance from day to day.

cial climate with tenants looking to minimise their expenditure and landlords

Network charges are increasing across the UK to pay for the modernisation

being affected by void spaces. In some cases, the scope of maintenance

of utility infrastructure. The introduction of feed-in tariffs provides opportuni-

servicing has been reduced in either the level, or frequency of maintenance,

ties for some but the cost of this subsidy is borne by all users.

to reduce costs from the previous year. Engineer salary levels have broadly

We predict that Site Management Resources will remain fairly constant

remained static, although this is expected to increase in the short/ medium

in terms of cost, with most companies adopting a no or low annual salary

term as the amount of quality skilled engineers remains in short supply.

increase. The range of skills now expected from facilities and building man-

rather than re-locate. Planned maintenance programmes are now well established and these should have the effect of smoothing year-on-year costs

The carbon reduction commitment (CRC) has proved to be a costly administrative burden in the registration phase and will continue to be so for

and reducing unplanned expenditure.

Site Management Resources

agement personnel, with management of tight budgets and supplier liaison

the evidence packs. However, the provision of clear information on energy

By the end of 2010 all AC systems should have been inspected by and

coming increasingly to the fore, requires a higher than ever level of training

consumption is fundamental to energy management and potential cost

Accredited Energy Assessor to meet legislative requirements, although

which may increase non-wage costs

reductions to the occupiers’ and landlords’ advantage.

concerns remain across the industry as a whole in relation to levels of compliance.

Water

Cleaning and Environmental

The industry regulator has agreed to above inflation rises to finance invest-

The roll out of automatic meter readers on gas and smaller electricity supplies will have a direct advantage for the landlords on CRC and occupiers for energy and cost management. The current under capacity of installa-

ment in ageing infrastructure.

tion teams to meet the CRC early adoption metrics will ease as the year

The ongoing recession will lead to a third year of zero costs increase for

progresses.

cleaning. Wages account for the majority of total cleaning costs and as

Conclusion

cleaning is a generally low paid industry minimum wage levels become a Security Security costs will generally remain constant for the third successive year.

significant driver. Increases to minimum wage have put pressure on costs

There is a general understanding that the effects of the recession are more

but changes to specifications and the use of machinery can mitigate this and

persistent than had been imagined two years ago and the supplier markets

allow overall cleaning charges to be maintained at constant levels.

understand that widespread cost increases will not be tolerated. Wages

Wage increases will be restricted to those sites where recruitment or reten-

will generally remain static with limited increases in certain areas and cost

tion of staff is becoming problematic. Concerns about job security which

Waste disposal costs continue to rise with year on year above inflation

savings can still be achieved by careful consideration of specifications,

accompanied the onset of the recession had led to reduced churn levels but

increases in landfill tax being the most significant element. This has encour-

increased use of technology and diligent management of suppliers.

a third year of wage freezes may now make relatively minor variations in

aged greater efforts to recycle but the recession has led to the collapse in

wage rates a compelling reason to move.

the market for many recycled products which could offset some collection charges. Active efforts to reduce waste going to both landfill and recycling

Re-visiting specifications and greater use of technology, especially the use

will therefore be the best way of keeping cost increases as low as possible.

of remote monitoring, can still lead to overall cost reductions even when wage rates are threatening to push costs up.

Fabric Repairs and Maintenance Tenants continue to increase emphasis on their buildings being presented in excellent order as there is a move to maintain and enhance existing space

29

30

Office OSCAR 2009 – Service Charge Analysis for Offices

Geographical areas

Definition of terms

City & Docklands EC1, EC2, EC3, EC4 and E14.

Cost categories The Royal Institution of Chartered Surveyors Service Charge Code came into effect on 1 April 2007 and incorporates 22 standard cost categories. From discussions with our clients and other managing agents, it would appear that the Code has been fully embraced and there

4. Gas • Gas and heating fuel oil • Gas / fuel oil procurement / consultancy NB – this currently incorporates the ‘Fuel Oil (Heating)’ cost category as defined within the RICS Service Charge Code 5. Water

should therefore be greater uniformity in the way that service charges are presented across the industry.

• Water and sewerage charges • Water consultancy

The data presented within this year’s Office OSCAR is for the year ending December 2008.

We detail below for ease of reference the items included within each category: Management 1. Management • Management fees • Accounting and audit fees NB – this currently incorporates the ‘Accounting Fees’ cost category as defined within the RICS Service Charge Code 2. Site Management Resources • FM Staff /Concierge / Receptionist costs • Site accommodation (rent / service charge / rates) • Office costs (telephones / stationery / petty cash) • Help desk / call centre / information centre • Landlord’s health, safety and environmental risk assessments, audits and reviews NB – this currently incorporates the ‘Health, Safety and Environmental’ cost category as defined within the RICS Service Charge Code Utilities 3. Electricity • Electricity • Fuel (standby electrical power) • Electricity procurement / consultancy

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Soft Services 6. Security • Security guarding and receptionists • Security systems • Post room and mail distribution services

10. Fabric Repairs & Maintenance • Internal / external repairs and maintenance • Re-decoration Other terms Exceptional Expenditure • Project works • Refurbishments and major repairs • Draw-down from forward funding accounts • Sinking / replacement / reserve funds • Depreciation /repayment charges • Estate / external service charges Base-level Service Charge • The full service charge costs of running a building excluding exceptional expenditure.

7. Cleaning & Environmental • Internal / external / window cleaning • Hygiene services / toiletries • Carpets / mats hire • Waste management • Pest control • Floral displays and landscaping • Suspended access equipment, maintenance and repairs NB – this currently incorporates the ‘Suspended Access Equipment’ cost category

This provides a measure of the cost of providing routine operational services to a building.

Full Service Charge Costs • The full expenditure running through a service charge account, including exceptional expenditure, but excluding any interest receipts and insurance costs.

Air-Conditioned • A building in which cooling and heating are provided in the majority of the lettable space

as defined within the RICS Service Charge Code

via the landlord’s central plant installation.

Non Air-Conditioned • A building in which only the heating is provided in the majority of lettable space via the landlord’s central plant installation.

Tenant’s supplemental air-conditioning plant is disregarded in this context.

Hard Services 8. M&E Services • M&E maintenance and repairs • M&E inspections and consultancy • Life safety systems maintenance and repairs • Life safety systems inspections and consultancy 9. Lifts & Escalators • Lift maintenance and repairs • Lift inspections and consultancy • Escalator maintenance and repairs • Escalator inspections and consultancy

West End of London W1, SW1, WC1 and WC2.

Greater London This region includes those postal districts roughly bounded by the M25. W, WD, HA, NW, N, EN, E, IG, RM, DA, SE, BR, CR, SW, SM, KT, TW, UB. South East Those postal districts including and lying inside: PO, SO, RG, OX, MK, SG, CB, CO. Midlands L, WA, M, CW, SK, S, ST, DE, NG,WV, DY, WS, LE, B, CV, NN. Outer Regions All postal districts outside of the Midlands and South East.

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Property and Asset Management

Contacts Richard Angliss Lead Director Property and Asset Management +44 (0)20 7399 5168 richard.angliss@eu.jll.com

Nigel Wheeler Chairman of Property and Asset Management +44 (0)20 3147 1395 nigel.wheeler@eu.jll.com

David Griffin Director of Property and Asset Management +44 (0)20 3147 1394 david.griffin@eu.jll.com

Gavin Blackwell Associate Director of Property and Asset Management +44 (0)20 3147 1401 gavin.blackwell@eu.jll.com

Jones Lang LaSalle, 40 Bank Street, Canary Wharf, London E14 5EG +44 (0)20 3147 6040

www.joneslanglasalle.co.uk/OSCAR

COPYRIGHT Š JONES LANG LASALLE, IP, INC. 2011. All Rights Reserved. While every effort has been made to ensure accuracy and completeness, we cannot offer any warranty that factual errors may have occurred. Jones Lang LaSalle cannot accept any legal responsibility for any damage or loss suffered by reason of any inaccuracy or incorrectness concerning information and material in this report.

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