Two offices may have the same floor area and rental rate yet cost a company very different amounts because of operating charges, utilities, parking, indexation and additional fees.<\/p>\n
In commercial real estate, the term OPEX, or operating expenses, is commonly used for recurring building costs. These include maintaining engineering systems, security, cleaning common areas, management-company services and other building operations.<\/p>\n
There is no universal list of OPEX items. One lease may include some expenses in the base rent, another may charge them separately, and a third may require the tenant to reimburse utilities and individual services.<\/p>\n
Offices should therefore not be compared solely by price per square metre. To understand the true cost, compile all mandatory charges and calculate the budget for a year or the entire occupancy period.<\/p>\n
Office OPEX comprises the recurring costs required for the normal operation of the premises and the building as a whole.<\/p>\n
These costs arise whether the office is owned or rented. The difference is who contracts with service providers and receives the invoices.<\/p>\n
In a rented office, operating charges may be collected by the owner or management company. When premises are owned, the owner pays for building services directly or through the building manager.<\/p>\n
OPEX should be distinguished from the base rent.<\/p>\n
Base rent<\/strong> \u2014 payment for the right to use the premises.<\/p>\n OPEX<\/strong> \u2014 payment for maintaining and operating the building.<\/p>\n Utility costs<\/strong> \u2014 the actual consumption of electricity, water, heating and other resources.<\/p>\n A particular lease may combine these categories or itemise them separately.<\/p>\n Consider two 500 sq m office listings.<\/p>\n The first office has a higher rental rate but includes operating costs, some utilities and basic cleaning.<\/p>\n The second appears cheaper, but the following are charged separately:<\/p>\n Once the annual budget is calculated, the second office may prove more expensive.<\/p>\n Therefore, when choosing an office in Moscow City<\/a> request not only a presentation and the rate per square metre, but also a complete list of mandatory charges.<\/p>\n The composition of OPEX depends on the building, lease and management model. It most often includes costs associated with common areas and building-wide systems.<\/p>\n This category may include maintenance of:<\/p>\n Engineering infrastructure is especially complex in a high-rise business centre. Its operation requires permanent technical staff and regular preventive maintenance.<\/p>\n This usually includes:<\/p>\n Cleaning inside the office may not be included in OPEX and may need to be arranged separately.<\/p>\n The operating charge may cover:<\/p>\n Additional access passes or a dedicated security post inside the office may be charged separately.<\/p>\n Lifts are one of the key engineering systems in a skyscraper.<\/p>\n Costs may include:<\/p>\n The more complex the building and the greater the number of lift groups, the larger this part of the operating budget may be.<\/p>\n Standard household-waste removal is usually part of building operations.<\/p>\n Construction waste after fit-out work, bulky items and special waste categories may be charged separately.<\/p>\n The management company coordinates:<\/p>\n The management company's fee may also be included in OPEX.<\/p>\n Depending on the property, this may include:<\/p>\n A common tenant mistake is to assume that the operating charge covers every office-related cost.<\/p>\n In practice, the following may be charged separately:<\/p>\n Obtain a written explanation for each item.<\/p>\n The phrase \u201call inclusive\u201d does not replace a lease appendix listing the services.<\/p>\n These categories are often confused even though they are fundamentally different.<\/p>\n When comparing listings, convert all figures to the same format.<\/p>\n For example, one rate may be quoted per square metre per year excluding VAT, while another is monthly and includes operating expenses. They cannot be compared directly.<\/p>\n OPEX consists of recurring operating expenses.<\/p>\n CAPEX consists of capital investment in creating or improving a property.<\/p>\n CAPEX may include:<\/p>\n In simplified terms:<\/p>\n When buying premises, a company faces both categories of costs: it first invests in fit-out and equipment, then pays annual operating expenses.<\/p>\n Several models are used in practice.<\/p>\n The company pays a set amount for each square metre per month or year.<\/p>\n Formula:<\/p>\n Annual OPEX = office area \u00d7 annual operating rate per sq m.<\/strong><\/p>\n For example, if an office occupies 800 sq m and the illustrative operating rate is RUB 10,000 per sq m per year:<\/p>\n 800 \u00d7 10,000 = RUB 8,000,000 per year.<\/strong><\/p>\n Monthly payment:<\/p>\n 8,000,000 \u00f7 12 = approximately RUB 666,667.<\/strong><\/p>\n This is an illustrative example, not the market rate for a specific property.<\/p>\n The management company prepares the building budget and allocates it among owners or tenants in proportion to the floor area they occupy.<\/p>\n A reconciliation may be carried out at the end of the period:<\/p>\n Under this model, it is important to understand how the budget is prepared and which documents support the expenses.<\/p>\n Some services are charged at a fixed rate and others according to actual consumption.<\/p>\n For example:<\/p>\n This model reflects consumption more accurately but makes budgeting more complex.<\/p>\n An accurate comparison requires calculating not only OPEX but the total cost of occupying the premises.<\/p>\n Use the following formula:<\/p>\n Total office cost = base rent + OPEX + utilities + parking + additional services + taxes.<\/strong><\/p>\n Where VAT applies, it should be included in accordance with the lease terms.<\/p>\n A company is considering a 1,000 sq m office.<\/p>\n Assumptions:<\/p>\n 1,000 \u00d7 50,000 = RUB 50,000,000 per year.<\/strong><\/p>\n 1,000 \u00d7 10,000 = RUB 10,000,000 per year.<\/strong><\/p>\n 1,000 \u00d7 2,500 = RUB 2,500,000 per year.<\/strong><\/p>\n 8 \u00d7 40,000 \u00d7 12 = RUB 3,840,000 per year.<\/strong><\/p>\n 150,000 \u00d7 12 = RUB 1,800,000 per year.<\/strong><\/p>\n 50,000,000 + 10,000,000 + 2,500,000 + 3,840,000 + 1,800,000 = RUB 68,140,000 per year.<\/strong><\/p>\n The stated base rent was RUB 50 million, but the actual budget was more than RUB 18 million higher.<\/p>\n All figures in this example are illustrative; its purpose is to demonstrate the calculation method.<\/p>\n Businesses should calculate not only cost per square metre but also cost per workstation.<\/p>\n Formula:<\/p>\n Monthly cost per workstation = total monthly office costs \u00f7 number of workstations in use.<\/strong><\/p>\n If an office costs the company RUB 6 million per month and contains 150 workstations:<\/p>\n 6,000,000 \u00f7 150 = RUB 40,000 per workstation per month.<\/strong><\/p>\n This calculation helps to:<\/p>\n If some workstations are regularly vacant, the actual cost per occupied workstation will be higher.<\/p>\n Buying premises does not eliminate recurring costs.<\/p>\n The owner continues to pay for:<\/p>\n When comparing buying and renting, consider costs over the entire ownership period, not just the purchase price.<\/p>\n A detailed comparison of the two scenarios is provided in the article \u201cBuying or Renting an Office in Moscow City: Which Is More Cost-Effective?\u201d<\/a>.<\/p>\n For an investor, operating expenses have a direct impact on net income.<\/p>\n Yield cannot be calculated solely as:<\/p>\n Rental income \u00f7 purchase price.<\/strong><\/p>\n Deduct the following from rental income:<\/p>\n The resulting figure will be closer to the actual yield.<\/p>\n Pay particular attention to which operating expenses can be passed on to the tenant and which remain with the owner.<\/p>\n When assessing investment in Moscow City commercial real estate<\/a> OPEX should be included in the financial model before the property is purchased.<\/p>\n Operating expenses depend on more than the building\u2019s class.<\/p>\n The total is affected by:<\/p>\n A high-quality building may cost more to operate while providing reliable engineering systems, better service and faster fault resolution.<\/p>\n Low OPEX is not an advantage if the management company cuts spending on preventive maintenance, cleaning and technical staff.<\/p>\nWhy a Low Rental Rate Does Not Always Mean a Good Deal<\/h2>\n
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What Office Operating Expenses Usually Include<\/h2>\n
Building Maintenance<\/h3>\n
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Cleaning Common Areas<\/h3>\n
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Security and Access Control<\/h3>\n
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Lift Maintenance<\/h3>\n
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Waste removal<\/h3>\n
Business-centre management<\/h3>\n
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Maintenance of surrounding grounds<\/h3>\n
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What may not be included in OPEX<\/h2>\n
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OPEX, Utilities and VAT: What Is the Difference?<\/h2>\n
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\n \nCharge<\/th>\n What the Company Pays For<\/th>\n How It May Be Calculated<\/th>\n<\/tr>\n<\/thead>\n \n Base rent<\/td>\n The right to use the office<\/td>\n Per sq m per month or year<\/td>\n<\/tr>\n \n OPEX<\/td>\n Maintenance of the building and shared systems<\/td>\n Per sq m or based on the operating budget<\/td>\n<\/tr>\n \n Utilities<\/td>\n Resources actually consumed<\/td>\n By meter readings or in proportion to floor area<\/td>\n<\/tr>\n \n Parking<\/td>\n Use of parking spaces<\/td>\n Per space per month<\/td>\n<\/tr>\n \n VAT<\/td>\n Tax, where applicable<\/td>\n A percentage of the taxable amount<\/td>\n<\/tr>\n \n Additional services<\/td>\n Office cleaning, reception and meeting rooms<\/td>\n At a set rate or under a separate agreement<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n How OPEX Differs from CAPEX<\/h2>\n
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How OPEX Is Calculated<\/h2>\n
Fixed Rate per Square Metre<\/h3>\n
Allocation of Actual Expenses<\/h3>\n
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Mixed Model<\/h3>\n
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How to Calculate the Total Cost of Renting an Office<\/h2>\n
Illustrative Calculation<\/h3>\n
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Base rent<\/h4>\n
OPEX<\/h4>\n
Utilities<\/h4>\n
Parking<\/h4>\n
Cleaning<\/h4>\n
Total before taxes<\/h4>\n
How to Calculate the Cost per Workstation<\/h2>\n
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What Operating Expenses Does an Office Owner Incur?<\/h2>\n
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How to Account for OPEX in an Investment Purchase<\/h2>\n
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Why OPEX Differs Between Business Centres<\/h2>\n
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