The administration and maintenance costs of office buildings in the portfolio of Colliers Romania's Asset Services department increased by 9% last year compared to 2022.

The higher costs for services in general, including due to higher salaries, and an improved presence of employees in the office in 2023 were the factors that drove this trend.

Colliers Romania manages approximately 680,000 square meters of real estate space (of which nearly 600,000 square meters are offices and the rest are industrial warehouses), making the company's data regarding administrative costs quite representative for the entire market.

Since utility costs are not included in all administrative cost budgets, but rather paid directly by tenants, Colliers excluded utilities from this analysis to maintain data comparability.

The largest increase in office building administration and maintenance budgets was in waste costs - 40% higher than in 2022. This increase is largely due to a higher presence of employees in office buildings, which increased from an average portfolio rate of 40% at the beginning of the year to 55% by the end of the year.

Significant increases of 12% were also recorded in security and firefighting service costs, while cleaning service costs increased by 11%, influenced by the two minimum wage increases in January and October 2023.

Currently, the company has approximately 400 tenants in the buildings it manages in Bucharest, Cluj-Napoca, Timișoara, Brașov, and Arad, and the value of the properties in the portfolio exceeds one billion euros.

Regarding utility costs, international markets have seen continuous decreases in electricity and gas prices, returning to pre-crisis levels, leading to a decrease in bills in 2023 compared to 2022.

Specifically, in December 2023, the unit price of energy (per kWh) recorded an average decrease of approximately 15% compared to January 2023 across the entire Colliers portfolio, and the trend continues to be a slight decrease.

There were also no significant differences in gas prices in 2023. Furthermore, considering all market factors, budgets for administration and maintenance expenses were built based on an average increase of 13% in 2024, according to Colliers consultants.

Colliers Romania provides asset management services for annual budgets of over 26 million euros, helping optimize these expenses for owners who have chosen to outsource these services.

Engaging Asset Services underscores the professional approach that office and industrial space developers and owners have towards their tenants, generating economies of scale and benefits such as significant contributions to the implementation of environmental, social, and governance (ESG) commitments, as well as the integration of optimized software and applications and unified reporting on the financial situation correlated with the operational situation on-site.

Colliers' Asset Services division takes a multidisciplinary approach to each project, covering a wide range of activities through the services it provides. Specifically, it ensures operational and technical management of buildings, meeting the needs of tenants and ensuring they fulfill their contractual obligations.

At the same time, the company also provides financial administration services (billing, payments, expenses and revenues, reconciliations), as well as reporting to owners, ensuring the operational link between the needs of tenants and those of owners.