Our advice led to annual savings of €75,000 for the owner and approximately 15% lower tenant charges.
|Property Name:||Manhattan Business & Distribution Center|
|Service Type:||Property Management|
|Quote:||“Not only did we reduce tenant service charges, but we developed the reduction plan before the official property handover.”|
When awarding us the property management of the Manhattan Business & Distribution Center, the owner indicated that one of its main goals was to reduce tenant service charges.
Though our official handover date was two months in the future, we understood the sense of urgency in lowering service charges. Several tenants had complained about the service charge levels, for example. So we took the initiative to promptly visit the property and evaluate opportunities for cost savings. We immediately noted surplus in security and maintenance staffing and recommended adjustments to the owner.
Based on our advice, the service charges were lowered by €75,000 annually, which amounted to about a 15% reduction for tenants. Since taking over the property, we have noted other opportunities for cost savings and expect to ultimately achieve a 20% decrease in service charges.