Empty storefronts and offices are everywhere. The economic impact of the COVID-19 pandemic and the ensuing trend of offices shifting to remote work or hybrid arrangements has created unprecedented building vacancies. The CoStar Group reports that 12.9% of office space is vacant—an all-time high—and the office space availability rate is at an all-time high of 16.4%.
Tenants are reducing their rental space, opting not to renew their leases, renegotiating their agreements for better rates, and increasingly defaulting on their leases. These trends increase pressure on building owners because commercial buildings are challenged with maintaining operating needs but with less income. During these trying times, commercial building owners and property managers are looking for ways to reduce financial strain by refinancing and cutting costs.
One significant opportunity to reduce costs is the building’s elevators. Elevator traffic analyses show that elevators are being utilized significantly less than before the pandemic, yet, they remain costly to maintain in sound working condition, with costs ranging anywhere from 5% to 30% of a building’s maintenance budget. Many of these costs are unnecessary. Also, it is common to uncover that the building’s vertical transportation equipment may not be receiving the preventative services they already paid for in their maintenance contract.
An elevator consulting firm has the technical expertise to critically review the elevator maintenance contract terms and conditions and identify cost-cutting and cost-saving measures comparative to the building’s needs. For example, there are areas of most contracts, such as building capacity limits or occupancy clauses, that can help cut costs. There are cases when adding, deleting, or rotating equipment can reduce maintenance expenses. Working with an elevator consulting firm can also help buildings keep their elevators up to date with the required codes and industry best practices.
Many commercial real estate buildings will find that the costs that an elevator consulting firm can uncover and save buildings will far surpass the initial cost of the consulting firm. An elevator consulting firm understands the nuances of the elevator industry and the many challenges of the commercial real estate industry to uncover strategic opportunities. Call for a consultation to discuss what options you may have 312.529.9949.