Jones Lang LaSalle OSCAR 2008 Retail - Introduction
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Jones Lang LaSalle OSCAR 2008 Retail
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Service Charge Analysis for Shopping Centres

The accurate measurement and monitoring of costs set out in the OSCAR report is an essential tool for the Chartered Surveyor in developing effective property management strategies and measuring management performance.

RICS has worked closely with Jones Lang LaSalle to ensure that the new industry Service Charge Cost Categories are compatible with those used in OSCAR. The highly respected OSCAR work is a considerable contribution towards our objective of more consistency and transparency within the property management sector.

 

 
RICS

Christopher Edwards
Chair, RICS Service Charge Group

Jones Lang LaSalle's Retail OSCAR continues to be the largest survey of shopping centre service charge information in the UK. The significant, representative sample of shopping centres which contribute to this report allows the reader to examine current trends and comparisons across type, size and location of each of the RICS approved heads of expenditure.

As detailed later in this report, the figures used in the 2008 Retail OSCAR relate to year end 2007 service charge expenditure. These figures will reflect the changes in the global economy as a result of the initial impacts of the current recession. We expect to see further impact over the coming years' OSCAR reports.

Service charges continue to be an area of constant debate between landlords and their tenants, especially in the shopping centre environment.

The need to balance value for money in terms of services provided against ever increasing shopper expectations of the retail environment has never been more important. Declining retail sales figures have also put a great deal of emphasis on landlords to ensure that service charges in shopping centres represent good value for money and are completely transparent to the paying tenants.

116 shopping centres totalling 41,505,117 sq ft with a combined service charge spend of £201,119,916 were included in Retail OSCAR 2008. Of these 116 contributors, 77 contributed to last year's report and we have 39 new contributors.

 Retail OSCAR 2008 - Number of centres

Increasing familiarity with the new RICS cost classes is resulting in consistency of cost allocation across the classes and codes.

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