Glossary
OPEX (Operating Expenditure)
Plain-Language Definition
The ongoing costs of running and maintaining a building on a day-to-day basis, including utilities, cleaning, security, routine maintenance, insurance, and management fees.
Technical Context
Building OPEX is typically expressed as cost per square metre per year. Benchmarks vary widely by market and building type: USD 30-80/m2/year for offices in developed markets, lower in Bangladesh. Major OPEX categories: energy (30-40%), maintenance (15-25%), cleaning (10-15%), security (10-15%), management (5-10%), insurance and taxes (5-10%). OPEX benchmarking uses sources like BOMA Experience Exchange Report, IFMA benchmarking, and RICS service charge analysis.
Why It Matters
OPEX represents the ongoing cost of occupying a building, often exceeding rent in total occupancy cost calculations. Understanding OPEX composition identifies savings opportunities. For tenants paying service charges, transparent OPEX reporting ensures fair allocation. High OPEX relative to benchmarks may indicate inefficient building systems or poor management.
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