Glossary
OPEX
Plain-Language Definition
Operating Expenditure — the ongoing day-to-day costs of running a building: utilities (electricity, water, gas), maintenance labour and materials, cleaning, security, management fees, insurance, and consumables.
Technical Context
Building OPEX is typically expressed as cost per square metre per year (BDT/m²/yr or USD/m²/yr). Major OPEX components: energy (30-40%), maintenance (15-25%), cleaning (10-15%), security (10-15%), management (5-10%), insurance (3-5%). OPEX benchmarking against IFMA or RICS standards reveals inefficiencies.
Why It Matters
OPEX directly affects tenant service charges and net operating income (NOI). Reducing OPEX — particularly energy — improves building profitability and tenant satisfaction. Energy is usually the largest controllable OPEX component. OPEX data is essential for building valuation and investment analysis.
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