Total service charge by location.
The trend that we have referred to in previous reports continues, namely that service charge costs for buildings situated in Central London (City, West End and Docklands) are substantially higher than those based elsewhere in the country
Using weighted average geared to sample size:
The trend appears to reflect the fact that in recent years the gap between Central London and the rest of the country has widened slightly.
Total service charge by size.
Whilst we have noted in previous reports that there are clear economies of scale in managing larger buildings (i.e those over 100,000 sq ft) there appears to be a trend for a more uniform cost base across all sizes of property in respect of air-conditioned buildings, although the differential is still apparent in respect of larger non air-conditioned buildings.
Differential between air-conditioned and non air-conditioned costs.
For any given location
It is interesting to note that the relative costs of running air conditioned and non air-conditioned buildings continues to narrow on a year by year basis particularly in Central London. In areas outside London the trend is a little more difficult to discern partly due to the sample size in certain areas.
For any given size
The clear differentiation that we have noted in previous reports between the cost of running larger air-conditioned and non air-conditioned buildings remains. The weighted average using sample size for an air-conditioned building in the two size categories above 40,000 sq ft is £5.74 per sq ft. and for non air-conditioned is £5.21 per sq ft. These figures narrow substantially for the smaller sized properties.
National average
Air conditioned costs exceed non air-conditioned costs by £1.47 per sq ft compared with £1.41 per sq ft for the previous year and £1.15 per sq ft the year previous to that. However, for the past three years the ratio of non air-conditioned to air-conditioned costs has remained consistently at 80%.
Component service charge by building location - year end 2007
Component service charge by building location - year end 2007
Component service charge by building size - year end 2007
Component service charge by building size - year end 2007
Total service charge by building location: a/c buildings (spread of middle 50% of service charge costs)
Total service charge by building location: non a/c buildings (spread of middle 50% of service charge costs)
Total service charge by building size: 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)
