A Smarter Way to Understand—and Control—Your Operating Expenses

For most companies, the rent check is just one part of the real estate cost equation. The other, often less visible component is Operating Expenses (OPEX)—the shared costs of running, maintaining, and managing a property.

Benchmarking these expenses helps ensure you’re not overpaying and that your landlord’s charges are in line with the market. It’s one of the most effective ways to identify hidden savings and improve total occupancy cost performance.

At Keyser, we help occupiers around the world benchmark OPEX across office, warehouse, manufacturing, medical, and retail portfolios using AI-enabled data analytics and conflict-free insight.

What Are Operating Expenses (OPEX) in Commercial Real Estate?

OPEX refers to the day-to-day expenses of operating a property—costs typically passed through to tenants under most commercial leases. These often include:

• Property taxes

• Insurance

• Utilities and janitorial services

• Maintenance and repairs

• Landscaping and security

• Common area management and administration fees (CAM)

For multi-tenant buildings, OPEX is usually distributed proportionally based on each tenant’s share of the property.

Why Is OPEX Benchmarking Important?

Without benchmarking, it’s difficult to know whether your OPEX costs are reasonable or inflated. Benchmarking allows you to:

• Identify outliers in building operating efficiency
• Negotiate expense caps or base-year resets during lease renewal
• Pinpoint savings opportunities through sustainability or vendor optimization
• Forecast more accurately across your global or multi-site portfolio

In short, benchmarking transforms OPEX from a “passive cost” into a strategic performance metric.

How Do Companies Benchmark OPEX Effectively?

A strong OPEX benchmarking process involves three key steps:

Step 1: Collect Accurate Data

Gather all expense categories, audited statements, and reconciliation reports from your landlord. Break down costs by type (taxes, utilities, maintenance, etc.) and compare across your portfolio.

Step 2: Compare Against Market Standards

Benchmark against similar buildings in your region and property type. For example:

• Office buildings often range from $8–$15 per square foot annually, depending on amenities and efficiency.
• Industrial or warehouse space may be $2–$6 per square foot, with fewer shared costs.
• Medical facilities or retail centers can vary widely based on compliance and service intensity.

Step 3: Analyze Trends and Outliers

Look for unusual year-over-year increases or expenses that don’t align with usage. A 12% jump in “administrative fees,” for instance, may warrant clarification.

Keyser’s AI-driven benchmarking tools integrate regional data, lease terms, and market comps globally to flag anomalies automatically and highlight areas for improvement.

Negotiate Smarter Lease Terms

Benchmarking is not just diagnostic—it’s strategic. Use your insights to negotiate:

• Expense caps (stops) to limit future increases
• Audit rights to verify landlord calculations
• Clear definitions of what expenses are controllable vs. non-controllable
• Base-year adjustments for renewals or expansions

By quantifying costs upfront, you can structure leases that protect against volatility and align with long-term financial goals.

Extend Benchmarking Across Property Types

OPEX benchmarking shouldn’t stop at the office.

• Warehouses and manufacturing sites benefit from energy and logistics efficiency comparisons.
• Medical facilities can benchmark utility, janitorial, and compliance costs.
• Retail tenants can compare CAM and marketing fund fees across centers.

Keyser’s global database covers all major asset classes, providing a unified framework for tracking OPEX performance worldwide.

Make It Continuous, Not One-Time

Markets evolve, service costs fluctuate, and new technologies can alter operating efficiency. The most successful organizations benchmark annually or semi-annually, building a dynamic model that adapts with their portfolio.

Keyser’s technology platform automates much of this process—using AI to update benchmarks, predict cost movements, and recommend savings strategies in real time.

The Keyser Advantage

With over 600 professionals worldwide, including international partners, Keyser delivers the same comprehensive service lines as any global commercial real estate firm—tenant representation, project management, financial analysis, and workplace strategy—while remaining uniquely conflict-free.

Our AI-enabled benchmarking gives occupiers full transparency into their OPEX performance, empowering smarter negotiations and measurable savings across office, industrial, medical, manufacturing, and retail assets.

Because when you can see your costs clearly, you can control them confidently.

FAQs About Operating Expenses in Commercial Real Estate

What are operating expenses (OPEX) in commercial real estate?

Operating expenses are the costs required to operate and maintain a commercial property, including taxes, insurance, utilities, maintenance, and common area expenses. These costs are often passed through to tenants based on their proportionate share.

Why is OPEX benchmarking important for business leaders managing real estate costs?

OPEX benchmarking helps determine whether operating expenses are competitive with comparable properties. It can identify unusual charges, uncover potential savings, and provide better information for lease negotiations and budgeting.

How do companies benchmark operating expenses effectively?

Companies benchmark OPEX by reviewing detailed expense data, comparing costs against similar properties, and analyzing year-over-year trends for unusual increases. The findings can also help inform expense caps, audit rights, and other lease protections.