How to Cut Corporate Utility Costs: Look at Your Lease

January 2017

For most companies, real estate occupancy and facility costs are some of the largest recurring expenditures. Energy, alone, can represent as much as one-third of a facility’s operating budget. It’s no secret that energy costs vary widely by region, but beyond that, the method by which a commercial tenant receives its utilities can also be a major factor in its overall costs. And while the cost of utility service is just one of the many considerations when deciding upon a new office location or the lease renewal at a current facility, it is one of the few costs that can be managed.
 
Although it’s impossible to predict the future cost of utilities – especially during a lease term spanning many years – there are certain elements that are within a tenant’s control. BDO Managing Director Michael Zwang’s recent bylined article in CFO Magazine discusses cost-cutting measures designed to boost the bottom line.