CREDITS. Associate Director of Research Shari F. Epstein

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2 CREDITS Benchmarks V Survey Committee Members Matt Anderson, CFM, Millipore Corporation Frederick J. Berl, CFM, Los Alamos National Laboratory Doug Burns, ICOS Corporation Sheryl Callahan, CFM, DonTech Randy W. Dinnison, CFM, LexisNexis George Gogola, CFM, CAE, College of AmericanPathologists Michael F. Guerin, PE, AIA, GuerinAssociates Inc. Al Q. Kinisky, CFM, PMP, SAPM, Concur Technologies Phyllis Meng, CFM, IFMA Fellow, Los Angeles County Metropolitan Transit Authority Steven R. Pons, CFM, Perdue Farms Inc. John Davis Secor, CFM, AIA, Archetype International John A. Sorich, CFM, Fluor Corporation Rick Wilkerson, Philips Medical Systems Associate Director of Research Shari F. Epstein Copyright 2008 by International Facility Management Association. All rights reserved. Printed in the United States of America For more information, please contact: IFMA Research Department 1 East Greenway Plaza, Suite 1100, Houston, TX , USA Phone: Fax: research@ifma.org ISBN Printed on 10% post-consumer waste recycled paper.

3 BENCHMARKS V ANNUAL FACILITY COSTS R E S E A R C H R E P O R T # 3 0

4 TABLE OF CONTENTS INTRODUCTION About This Report Methodology Using This Report Acknowledgements Definitions for Benchmarks V Report SECTION 1: DESCRIPTION OF FACILITIES INDUSTRIES REPRESENTED FACILITY USE Facility Description LOCATION OF FACILITY Facilities by Region FACILITY AGE AND SETTING Facility Setting OWNERSHIP Overall Ownership Owned vs. Leased by Facility NUMBER OF OCCUPANTS Days and Hours of Operation SECTION 2: SIZE OF FACILITIES AND SQUARE FOOTAGE PER OCCUPANT BUILDING EXTERIOR GROSS AREA (GROSS) Owned vs. Leased by Size of Facility FACILITY RENTABLE AREA (RENTABLE) Owned vs. Leased by Size of Facility GROSS AND RENTABLE BY INDUSTRY TYPE AND FACILITY USE SQUARE FOOTAGE PER OCCUPANT SECTION 3: COST OF OPERATIONS JANITORIAL COSTS Janitorial Staffing MAINTENANCE COSTS Maintenance Costs Roads and Grounds Costs Facility Operating Current Replacement Value (CRV) Index UTILITY COSTS Utility Consumption

5 TABLE OF CONTENTS SECTION 4: ENVIRONMENTAL, HEALTH AND SAFETY ENVIRONMENTAL COSTS LIFE AND SAFETY COSTS EMERGENCY AND DISASTER PLANNING COSTS SECURITY COSTS SECTION 5: PROJECT AND SUPPORT TYPES OF PROJECTS PROJECT COSTS SPACE PLANNING COSTS FM INFORMATION TECHNOLOGY COSTS EMPLOYEE AMENITIES EMPLOYEE AMENITIES COSTS SECTION 6: FINANCIAL INDICATORS LEASE TYPE AND COSTS COST OF OPERATIONS COST OF PROVIDING THE FIXED ASSET OCCUPANCY COST TOTAL ANNUAL FACILITY COST SECTION 7: PARTICIPANT LIST PARTICIPANT LIST

6 INTRODUCTION ABOUT THIS REPORT IFMA conducts a benchmarking survey of its members annually, and the results are eagerly anticipated by facility managers. The objective of IFMA s benchmarking surveys is to collect facility data that will easily allow comparison of costs and practices. This year s survey is more general in nature in that it gathers costs from all facility areas including housekeeping, maintenance, utilities, security, environmental, project, support and space planning. Respondents also are required to provide a description of the facility, including size, type, hours of operation, location, industry, leasing arrangements and number of occupants. To create this year s survey, a committee of IFMA members reviewed questions posed in 2004 Benchmarks IV and 2005 Operations and Maintenance surveys and developed new questions to better match today s practices. The nine-page survey was mailed to IFMA professional members in the United States and ed to Canadian professional members in June Although the surveys were issued to IFMA members, membership was not required to participate. In addition to the mail survey, members were sent multiple reminders which directed them to a link to IFMA s Web site where they could download a copy of the survey. More than 1,052 surveys were returned by December After incomplete and duplicate surveys were removed, 1,032 surveys remained deemed usable for analysis. Findings are discussed in the sections that follow. Statistically significant findings are integrated in the text of the report. Additional copies of this report may be ordered through IFMA s bookstore. For those seeking different sorts of information not presented in this report, one can order the database used to create this report. The database can be obtained in its entirety in Microsoft Excel by contacting IFMA s research department. The cost of the database varies based upon survey participation and membership. Please see the back cover of this report to determine pricing. ABOUT IFMA IFMA is the largest and most widely recognized professional association for facility management, supporting more than 19,000 members. The association s members, represented in 125 chapters and 15 councils worldwide, manage more than 37 billion square feet of property and annually purchase more than US$100 billion in products and services. Formed in 1980, IFMA certifies facility managers, conducts research, provides educational programs, recognizes facility management certificate programs and produces World Workplace, the world s largest facility management conference and exposition. For more information, visit ABOUT IFMA RESEARCH IFMA conducts a variety of research programs that serve to strengthen the knowledge and skills of FM professionals while advancing the FM profession itself. From industry surveys to forecasting to best practice forums, IFMA s research department draws on the practices and opinions of FM professionals and educators, covering topics vital to the day to day operations of facility professionals and the built environment in general. Whether the focus is on industry averages, benchmarking statistics, or the latest on trends in the workplace, IFMA is an information leader for the FM profession. Shari Epstein Associate Director of Research 2008 IFMA BENCHMARKS V 1

7 INTRODUCTION METHODOLOGY The Benchmarks V survey was developed in spring Committee members reviewed questions used in previous benchmarking surveys. Many of the questions were deemed still useful while others were modified to better reflect current practices. In some cases, questions were expanded to capture additional cost categories. The survey was then converted into both a paper survey and electronic document. Paper surveys were mailed to more than 10,000 North American professional members in July A postage paid envelope accompanied the paper survey. In the same month, IFMA s electronic members received an e mail directing them to IFMA s Web site where they could download the electronic survey. Members were encouraged to pass the survey to the most appropriate person to complete. Respondents were asked to provide information on the facilities they manage for a 12 month period of time. Many chose to report the data for calendar year Approximately 1,052 surveys were returned during a six month time period. A total of 1,032 surveys were deemed usable for tabulation purposes. A completion rate of 50 percent was considered usable. If a survey did not include facility type, space managed or number of occupants, the respondent was contacted to supply this pertinent data. The data was analyzed using SPSS/PC+ software. Extreme high and low values were omitted from data analysis to prevent the data from being skewed. Additional calculations were made to determine cost and utility consumption per square foot, and square footage per occupant. If data was out of range, the respondent was contacted to determine how the information was derived. In many cases, new information was supplied and the information was subsequently entered. Canadian cost data was converted to U.S. currency by multiplying costs by a factor of.99, the currency exchange rate on Dec. 3, All dollar amounts in this report are reported in U.S. currency with exception to Canadian regional data which is reported in Canadian dollar. Procedures used for analysis include univariate procedures such as frequencies, cross tabulations, mean comparisons and descriptives. This report contains the results of those analysis deemed to be of most interest to facility managers. Benchmarks V Annual Facility Costs is a self report survey. All data, including respondent identification, was voluntary. As with any research, readers should exercise caution when generalizing results and take individual circumstances and experiences into consideration when making decisions based on these data. While IFMA is confident in its research, it is important to understand that the results presented in this report represent the sample of organizations that chose to supply the requested facility information. The number of respondents (indicated by N in charts and tables) will vary because some respondents did not answer all of the questions. A respondent may have opted out of a question because the question or some of its parts were not applicable, or the respondent did not have the data available. This accounts for the varying number of responses from one table or chart to another or within each table. Within some tables a blank or a line is inserted because there were not enough responses to generate a valid statistic. A confidence level and margin of error give readers some measure of how much they can rely on survey responses to represent all IFMA member organizations. Given the level of response to this survey, IFMA is 95 percent confident that responses given by all responding organizations can be generalized to all IFMA member organizations, in general with a margin of error of approximately +/ 4.0 percent. For example, 57 percent of the respondents reported that their facility provides a food service operation such as a cafeteria. With a 4 percent margin of error for the sample size of 418, the reader can be 95 percent certain that between 53 percent and 61 percent of member facilities operate food services at their facility. It is important to note that as the sample size decreases, which occurs in many of the tables, the margin of error increases. For example, a smaller sample of 150 decreases the margin of error to +/ 8 percent. 2 BENCHMARKS V 2008 IFMA

8 INTRODUCTION USING THIS REPORT Benchmarking is not a perfect science. It is a detailed multi step process which allows one to compare aspects of performance, identify gaps, seek out different approaches, follow through with implementation, monitor progress and review the benefits. One of the most common mistakes people make when creating a benchmarking strategy is selecting an organization within their own industry to benchmark against. This report will allow you to make this comparison, but we encourage you to also compare your facilities operations to other facility types, because these other organizations may share similar views of asset management. Using this benchmarking data calls for some words of caution. The information contained in the report represents a self report from IFMA members and others. All information was voluntarily provided but was not checked with site visits. If a response appeared unusual or out of range, an e mail was sent to verify information. Corrections are made if necessary. When interpreting the data, it is important to remember that every facility is different, and every organization operates using different accounting and measuring practices. The data listed in this report will not provide a perfect comparison of your organization to that of another company, but it should give you a good idea how your facility fits into the range of performance. The percentile charts in this report allow you to see how your operation ranks against other organizations. The arrows beside some charts show the best in class direction. Using your facility s numbers for the performance indicator, determine whether your building is above or below the median (50th percentile). If your facility falls way above or below the median, you may want to examine your cost or procedures on that area. However, your facility may differ from the median due to your type of facility, region or labor market. The data should help you identify areas where you can improve your facility operation. Best in class for facility operations is a difficult concept. For example, allocating the least amount of space per person may be best in class in terms of the efficient use of space, but it may have a detrimental effect on employee morale and productivity. Research done by BOSTI Associates suggests that workspace size, by itself, does not affect job performance or satisfaction, but the loss of size in individual workspace due to relocation or redesign affects job satisfaction and retention. Working toward the lowest percentile in square feet per person can be counter productive; however, some companies believe this should be the standard, when it is not. For this reason, we have designated a direction on some of the percentile charts to indicate best in class, but we have not defined a specific level of performance as best in class. Using this report is the first step in benchmarking. After you have identified areas where your facility operations could be improved, you should conduct additional research before reengineering the process. One should not immediately rush to find out which company is best in class and copy their practice. Instead you should look for a more homogeneous group in which to compare. Participating in a local IFMA chapter or council benchmarking study is a good way to explore how to improve your facility operations. IFMA s research department can assist interested organizations to form benchmarking consortiums. In addition, IFMA has the capability to conduct more detailed, smaller scaled benchmarking studies. ACKNOWLEDGEMENTS This report would not exist without the facility data supplied by the hundreds of respondents who chose to take the time to participate. Because this survey covers such a large breadth of functional areas, respondents often split the survey among different departments as well as comb through several CAFM, CMMS or CAD databases to provide accurate responses. Many respondents supplied data from multiple facilities which further increased their heavy work load. We appreciate their high level of commitment to IFMA and the facility management profession by taking the time to complete this survey. IFMA relies on a group of subject matter experts who represent a variety of industries and manage different types of facilities to create this survey. They meet via teleconference over a period of weeks to craft and revise the questions used in this survey and later pretest the questionnaire. Their names are acknowledged on the inside cover of the report. Shari Epstein, IFMA s associate director of research, conducted the survey, validated and analyzed the data, created the tables and graphs and wrote the report IFMA BENCHMARKS V 3

9 DEFINITIONS FOR BENCHMARKS V REPORT Average Also referred to as the mean the sum or total of all responses divided by the number of respondents. BAS Building Automation System Building Exterior Gross Area (Gross Area) Building exterior gross area is the sum of the floor areas on all levels of a building that are totally enclosed within the building envelope. Building exterior gross area includes facility interior gross area, exterior walls, major vertical penetrations, void areas and interior parking space. CAD Computer Aided Design CAFM Computer Aided Facility Management CAM charges Common Area Maintenance charges Categories of Moves Box moves (employees moved to existing workspaces) * No furniture moved, no new wiring or telecommunication systems required. Files and supplies moved Furniture moves (workstation/furniture moves) * Reconfiguration of existing furniture and/or furniture moved or purchased. Minimal telecommunication reconfiguration needed Construction moves (moves that require construction) * New walls, new or additional wiring, new telecommunication systems or other construction needed to complete the move. Cleaning Service Level Orderly Spotlessness (Level 1) - Floor and base moldings are clean and shine. No dirt build-up in corners or along walls. All vertical and horizontal surfaces have a freshly cleaned appearance; no accumulation of dust, dirt, marks, streaks, smudges or fingerprints. Washrooms are odor-free and tile gleams; supplies are adequate. Trash containers hold only daily waste and are clean and odor-free. Ordinary Tidiness (Level 2) - Floor and base moldings are clean and shine. No dirt build-up in corners or along walls, but there may be up to two days worth of dust, dirt, stains or streaks. All vertical and horizontal surfaces are clean, but marks, dust, smudges, and fingerprints are noticeable upon close observation. Washrooms are odor-free and tile gleams; supplies are adequate. Trash containers hold only daily waste and are clean and odor-free. Casual Inattention (Level 3) - Floors are swept or vacuumed clean but upon close observation reveal stains. A build-up of dirt and/or floor finish in corners and along walls can be seen. There are dull spots and/or matted carpet in halls and corridors. Base molding is dull and dingy with streaks or splashes. All vertical and horizontal surfaces have conspicuous dust, dirt, smudges, fingerprints and marks. Trash containers hold only daily waste and are clean and odor-free. Moderate Dinginess (Level 4) - Floors are swept or vacuumed clean, but are dull, dingy and stained. There is a noticeable build-up of dirt and/or floor finish in corners and along walls. There us a dull path and/or obviously matted carpet in halls and corridors. Base molding is dull and dingy with streaks and splashes. All vertical and horizontal surfaces have conspicuous dust, dirt, smudges, fingerprints and marks. Trash containers smell sour. Unkempt Neglect (Level 5) - Floors and carpets are dull, dirty, dingy, scuffed, and/or matted. There is conspicuous build-up of old dirt and/or floor finish in corners and along walls. Base molding is dirty, stained, and streaked. All vertical and horizontal surfaces have major accumulations of dust, dirt, smudges and fingerprints. Trash containers overflow, are stained and smell sour. (APPA s Custodial Staffing Guidelines for Educational Facilities, second edition) 4 BENCHMARKS V 2008 IFMA

10 DEFINITIONS FOR BENCHMARKS V REPORT CMMS Computerized Maintenance Management System Cost of Operations Annual cost of operation includes the total costs associated with the day-to-day operation of a facility. It includes all maintenance and repair costs (both fixed and variable), administrative costs (clerical, time-keeping, general supervision), labor costs, janitorial, housekeeping and other cleaning costs, utility costs and indirect costs, i.e. all costs associated with roadways and grounds. Cost of Providing the Fixed Asset The sum of all the annual business capital costs and charges not related to the facility s operation. Capital costs, capital leasehold improvements, taxes, insurance, depreciation, interest expense charges are included. It does not include lease costs, project or support costs. Facility An environment which is built, installed or established to serve a work-related purpose. Facility Operating Current Replacement Value (CRV) Index This indicator represents the level of funding provided for the stewardship responsibility of an organization s capital assets. The indicator is expressed as a ratio of annual facility maintenance operating expenditure to Current Replacement Value (CRV). (Asset Lifecycle Model for Total Cost of Ownership Management, 2005) Facility Management Facility management is a profession that encompasses multiple disciplines to ensure functionality of the built environment by integrating people, place process and technology. Facility Rentable Area (Rentable Area) As defined in ASTM , building exterior gross area minus exterior walls, major vertical penetrations, interior parking space and void areas is facility rentable area. Full-time Equivalent The operational and supervisory person year headcount that delivers a facility service on an annual, full-time basis, calculated on a 40-hour work week (2080 hours/year). Gross Square Foot (GSF) Basis used for utility calculations. Interior Parking Space The space used for vehicular parking space that is totally enclosed within the (occupied) building envelope. Leases Net lease - Base rent plus tenant pays directly a share of real estate taxes. Gross lease - one payment in which owner has included estimated cost of operations. Triple-net lease - base rent plus tenant pays expenses related to on-going operation of facility. Major Vertical Penetrations Major vertical penetrations include stairs, elevator shafts, utility tunnels, flues, pipe shafts, vertical ducts and their enclosing walls. Mean See definition for average. Mean and average are used interchangeably and the interpretation is the same. Median The middle value in a range of responses is the median. One-half of all respondents will be below this value, while one-half will have a higher value. The median is also known as the 50th percentile. The advantage in using the median is that it is not affected as much by extreme highs or lows in the range of values as is the case with the mean IFMA BENCHMARKS V 5

11 DEFINITIONS FOR BENCHMARKS V REPORT Multi-Use Used in this report to describe facilities with two or more primary uses, such as a single site that encompasses headquarter offices as well as production or research facilities. N N is the number of cases supplying the data being described. It is important to note the size of the sample for the value you are comparing. Percentile Indicates dispersion of data and a specific percentile identifies where a value lies in relation to other values in a range of responses. The 25th percentile is the lower one-fourth point in the range of values in the group. The 50th percentile, also referred to as the median, represents a value of which one-half of the group falls below and one-half falls above. The median is not affected by extreme high or low values whereas the mean could be distorted. Preventive Maintenance Planned actions undertaken to retain an item at a specified level of performance by providing repetitive scheduled tasks which prolong system operation and a useful life; i.e. inspection, cleaning, lubrication, part replacement. (Cotts, Lee, 1992) Project Management Project management is the process of planning, organizing, and managing tasks and resources to accomplish a well-defined objective, usually within constraints on time, resources, or cost. Rentable Square Foot (RSF) Basis for most benchmark calculations. Repair Maintenance Work that is performed to put equipment back in service after a failure, to extend life of the equipment, or to make its operation more efficient. (Armstrong, 1996) Site Population The number of full- and part-time employees, contract workers and/or tenants located at the facility(ies.) Workstation Any type of space designated for occupant usage, either an open or an enclosed area, where an occupant can be seated. Void Areas Rooms that are more than one story in height. Void areas exist on upper floors, such as atriums, light wells or lobbies. 6 BENCHMARKS V 2008 IFMA

12 S E C T I O N 1 DESCRIPTION OF FACILITIES Industries Represented Facility Use Facility Description Location of Facility Facilities by Region Facility Age and Setting Facility Setting Ownership Overall Ownership Owned vs. Leased by Facility Number of Occupants Days and Hours of Operation 2008 IFMA BENCHMARKS V 7

13 DESCRIPTION OF FACILITIES Industries Represented Each year IFMA strives to increase participation in its benchmarking studies. More data allows for better comparison. This year s sample was broad in that more than 1,000 organizations shared their facility data with IFMA. To classify the information provided, each respondent chose from a list of 33 broad industry categories. If the data was provided by a third party, such as a facility management contractor, the client s industry was provided. IFMA verifies each survey by checking the respondent s Web site to confirm the right industry category was selected. The table below shows a breakdown of each industry category and how many are in each category. Please note that several similar industries are grouped together, but they are represented as one industry category throughout the report. The U.S. General Services Administration (GSA) provided data on 487 facilities, which explains the large sample size for federal government facilities. INDUSTRY TYPE INDUSTRY DESCRIPTION NUMBER OF CASES (N) Services Sector 225 Banking Consumer, Commercial, Savings, Credit Unions 34 Health Care Health Care 14 Hospitality Hotel, Restaurants, Hospitality related 10 Information Services Data Processing, Information Services, E Commerce 22 Insurance Health, Life, Auto, Mutual, Casualty, Flood 37 Investment Services Securities and Investment Services 24 Media Entertainment, Media, Broadcasting, Publishing 13 Professional Services Law, Accounting, Consulting, Engineering, Architecture 25 Telecommunications Telecommunication Services 5 Trade Wholesale, Retail 17 Transportation Transportation, Freight 6 Utilities Energy related Utilities 18 Manufacturing Sector 138 Aircraft/Industrial Aircraft, Industrial Equipment 16 Building/Construction Building, Construction Materials 5 Chemical/Pharmaceutical Chemical, Pharmaceutical, Biotech 16 Consumer Products Food, Paper or related 19 Computer Computer Hardware or Software 32 Electronics Electronics, Telecommunications Equipment 21 Energy Energy related, Mining or Distribution 6 Medical Equipment Medical Equipment 14 Motor Vehicles Motor Vehicles 9 Institutional Sector 657 Association Association, Society, Federation 10 Cultural Cultural Institutions 7 Education Higher Education, K Federal Federal Government 510 State/Provincial State/Provincial Government 14 City/County City/County Government 60 Special District/ Quasi Government Special Districts, Transportation Authorities, Improvement Districts, Quasi Government Religious Religious, Charitable BENCHMARKS V 2008 IFMA

14 DESCRIPTION OF FACILITIES Facility Use IFMA members manage a variety of facilities. This survey classified buildings into 21 different facility types which are used consistently throughout this report. By far, corporate headquarters is the most common type of facility managed by this group of respondents. This year s study included several new categories including convention centers, recreational facilities, theatres and a general category for transportation. Because of the inclusion of GSA s large portfolio, the number of headquarters facilities and courthouses were larger than in previous IFMA reports. FACILITY USE FACILITY DESCRIPTION NUMBER OF CASES (N) Headquarters Headquarters with offices and workstations 455 Non HQ Non Headquarter Offices, Regional Offices 230 Courthouse Courthouse 127 Multi Use A combination of space, but no single type of space dominates more than 50 percent. 39 Research Center Research, Laboratory 28 Educational/ Training Center Education, Training, Classrooms 28 Factory Factory, Plant 27 Call Center Call Center 18 Data Center Data, Computer Center, Switch Facility 10 Museum Museum, Arboretum, Gallery, Library 9 Hospital Hospital, Hospice, Surgical Center 7 Clinic Clinic 6 Multi Residential Dormitory, Retirement Housing, Apartments 5 Warehouse Warehouse, Storage, Distribution Center 5 Retail Branch Branch Location 5 Recreational Recreation Center, Golf Course 4 Correctional Jail, Prison 4 Religious Church, Mosque, Synagogue 4 Convention Center Convention Center, Exhibit Hall, Hotel 2 Arena Arena, Theatre, Auditorium 2 Transportation Airport, Rail, Bus Station 1 TOTAL 1,016 Facility Description The majority of respondents provided data on a single use building which was what the survey requested. A smaller percent, 14 percent, provided data for a campus site. Most campus sites housed either two or three buildings. Five percent reported on space contained within a building, usually leased. Single building Multiple buildings in one location 72% 14% 9% 5% Multiple buildings in multiple locations Space within a building N=1, IFMA BENCHMARKS V 9

15 DESCRIPTION OF FACILITIES Location of Facility Almost every state and province in the United States and Canada is represented in this year s sample. Reference the map below to see the actual count Hawaii (Washington, D.C.) Facilities by Region In addition to industry and facility use, many of the costs in this report are broken out regionally. The chart to the right provides a category label for each region and lists the states within each region. The groupings in the United States are categorized based upon zip code. For example, the region labeled Mountain is composed of states in which the zip code begins with the number 8. REGION N % OF SAMPLE Canada (AB, BC, ON, QC, SK) 21 2% New England (CT, MA, ME, NH, NJ, VT, RI) 81 8% Northeast (DE, NY, PA) 66 6% Mid Atlantic (DC, MD, NC, SC, VA, WV) % Southeast (AL, FL, GA, MS, TN) % Midwest (IN, KY, MI, OH) 96 9% North Central (IA, MN, MT, ND, SD, WI) 99 10% Heartland (IL, KS, MO, NE) 88 9% South Central (AR, LA, OK, TX) % Mountain (AZ, CO, ID, NM, NV, UT, WY) 89 9% Pacific (AK, CA, HI, OR, WA) % 10 BENCHMARKS V 2008 IFMA

16 DESCRIPTION OF FACILITIES Facility Age and Setting One of the emerging facility trends IFMA has been tracking is the maintenance and replacement issues associated with aging buildings. Facility managers are faced with the largest collection of aging building stock ever encountered. The average age of the facilities in this data set is 33 years. 28% 23% 13% 14% 4% 7% 8% 3% 5< Years 5-10 Years Years Years Years Years Years >100 Years N=1,019 Facility Setting The amount of space and land that a facility requires has an impact on where it is situated. Research centers and factories are more likely found in either suburban or industrial parks whereas courthouses and arenas are located in downtown locations. Suburban Area 40% 19% Industrial Park 13% 4% 24% Rural Central Business District Secondary Downtown Location N= IFMA BENCHMARKS V 11

17 DESCRIPTION OF FACILITIES Ownership Overall Ownership A large proportion of the respondents manage facilities that are owner occupied, 81percent. 81% 12% 7% Owner Occupied Leased Combination N=1,030 Owned vs. Leased by Facility Space within a building 10% 86% 4% Single building 91% 7% 2% Multiple buildings in one location 75% 13% 12% Multiple buildings in multiple locations 42% 14% 44% N=1,029 Owner Occupied Leased Combination 12 BENCHMARKS V 2008 IFMA

18 DESCRIPTION OF FACILITIES Number of Occupants Space per person and cost per person stats are derived by dividing area and costs by site population, i.e., the total number of full time, part time and contract workers who occupy space. Recognizing that this number C fluctuates throughout the year, respondents provided an average for a 12 month period. More than 2, or less 16% 14% 1,001-2,500 18% 15% 37% ,000 Mean=1,684 Median=500 Range=6-50,000 Days and Hours of Operation Facilities that operate full time (24/7) consume larger amounts of energy such as electricity and gas. They also require additional cleaning. Hospitals, call centers, correctional and residential facilities are more apt to fit this heavy user category due to their extended hours of operation. FACILITY USE N HOURS/ DAY SHIFTS/ DAY DAYS/ WEEK % HEATED/ COOLED Headquarters % Non HQ % Research Center % Educational/Training Center % Factory % Call Center % Courthouse % Multi Use % Data Center % Museum % Correctional % Hospital % Clinic % Multi Residential % Retail Branch % Warehouse % Recreational % Religious % TOTAL % 2008 IFMA BENCHMARKS V 13

19 S E C T I O N 2 SIZE OF FACILITIES AND SQUARE FOOTAGE PER OCCUPANT Building Exterior Gross Area (Gross) Owned vs. Leased by Size of Facility Facility Rentable Area (Rentable) Owned vs. Leased by Size of Facility Gross and Rentable by Industry Type and Facility Use Square Footage per Occupant 2008 IFMA BENCHMARKS V 15

20 SIZE OF FACILITIES AND SQUARE FOOTAGE 2 PER OCCUPANT Building Exterior Gross Area (Gross) Building exterior gross area (Gross or GSF) feet is the larger of the two area measurement used in this report. Gross is used as the denominator for cost per square for utility costs. Survey respondents were asked to provide gross feet using IFMA s measurement standard, ASTM E This standard defines building exterior gross area as the sum of the floor areas on all levels of a building that are totally enclosed within the building. It includes facility interior gross area, exterior walls, major vertical penetrations, void areas and interior parking space. PERCENTILE GROSS SQUARE FEET 99 5,005, ,659, ,001, , ,001-1,000,000 GSF 13% More than 1,000,000 GSF 10% 36% 100,000 or less GSF , , , , , , ,000 GSF 20% 21% MEAN 483,245 N=1, , ,000 GSF Owned vs. Leased by Size of Facility C 100,000 or less 84% 13% 3% 100, ,000 78% 18% 4% 200, ,000 85% 11% 4% 500,001 1,000,000 80% 10% 10% More than 1,000,000 69% 5% 26% Owner Occupied Leased Combination 16 BENCHMARKS V 2008 IFMA

21 SIZE OF FACILITIES AND SQUARE FOOTAGE PER OCCUPANT Facility Rentable Area (Rentable) Rentable area is defined as gross area minus exterior walls, major vertical penetrations, interior parking space and void areas such as atriums and lobbies. Despite the name, the term rentable does not pertain to leased space. The term rentable is used throughout this report, as the majority of annual costs are divided by the rentable square feet (RSF) supplied by each respondent. C PERCENTILE RENTABLE SQUARE FEET 99 4,155, ,466, , , , , , , ,001-1,000,000 RSF 100, ,000 RSF 20% More than 1,000,000 RSF 11% 8% 20% 41% 100,000 or less RSF 1 5,590 MEAN 422,759 N=1, , ,000 RSF Owned vs. Leased by Size of Facility C 100,000 or less 84% 13% 3% 100, ,000 79% 16% 5% 200, ,000 83% 13% 4% 500,001 1,000,000 78% 10% 12% More than 1,000,000 68% 1% 31% Owner Occupied Leased Combination 2008 IFMA BENCHMARKS V 17

22 SIZE OF FACILITIES AND SQUARE FOOTAGE PER OCCUPANT Gross and Rentable by Industry Type INDUSTRY TYPE N GROSS SQ. FT. RENTABLE SQ. FT. MEAN MEDIAN MEAN MEDIAN INSTITUTIONS MANUFACTURING SERVICES Banking , , , ,113 Health Care 14 1,232, ,833 1,087, ,313 Hospitality , , , ,873 Information Services , , , ,000 Insurance , , , ,000 Investment Services , , , ,390 Media , , , ,000 Professional Services , , ,684 89,888 Telecommunications 5 1,238, ,000 1,177, ,000 Trade , , , ,649 Transportation 6 117,686 82, ,887 77,911 Utilities , , , ,384 Aircraft/Industrial 16 1,023, , , ,000 Building/Construction 5 5,102, ,780 4,629, ,558 Chemical/Pharmaceutical , , , ,236 Computer , , , ,500 Consumer Products , , , ,069 Electronics , , , ,000 Energy 6 1,232,976 1,164, , ,373 Medical Equipment , , , ,010 Motor Vehicles 9 1,329, ,000 1,273, ,000 Association , , , ,500 City/County , , , ,700 Cultural 7 1,868, ,000 1,550, ,000 Education 31 1,414, ,000 1,159, ,373 Federal , , , ,191 Religious , , , ,500 Research 9 919, , , ,000 Special District/ Quasi Government 9 3,937, ,854 3,710, ,756 State/Provincial , , , , BENCHMARKS V 2008 IFMA

23 SIZE OF FACILITIES AND SQUARE FOOTAGE PER OCCUPANT Gross and Rentable by Facility Use FACILITY USE N GROSS SQ. FT. RENTABLE SQ. FT. MEAN MEDIAN MEAN MEDIAN Headquarters , , , ,000 Non HQ , , , ,200 Courthouse , , , ,342 Multi Use , , , ,742 Research Center , , , ,272 Educational/ Training Center 28 1,555, ,151 1,281, ,000 Factory 27 1,715, ,300 1,562, ,000 Call Center ,074 73, ,043 70,500 Hospital , , , ,873 Data Center ,765 82, ,161 75,000 Museum 9 1,464, ,000 1,213, ,000 Correctional 7 354, , , ,807 Clinic 6 149, , ,338 85,493 Multi Residential 5 350, , , ,927 Retail Branch 5 80,620 33,500 67,864 31,000 Warehouse 4 1,041,676 57, ,039 55,078 Recreational 3 90,000 77,833 80,000 72, IFMA BENCHMARKS V 19

24 SIZE OF FACILITIES AND SQUARE FOOTAGE PER OCCUPANT Square Footage Per Occupant PERCENTILE SQ. FT. PER OCCUPANT GROSS RENTABLE 99 1,042 1, MEAN INDUSTRY TYPE N GROSS SQ. FT. RENTABLE SQ. FT. MEAN MEDIAN MEAN MEDIAN Headquarters Non HQ Research Center Educational/ Training Center Factory Call Center Multi Use Courthouse Data Center Hospital Museum Clinic Retail Branch Correctional Recreational BENCHMARKS V 2008 IFMA

25 SIZE OF FACILITIES AND SQUARE FOOTAGE PER OCCUPANT Square Footage Per Occupant INDUSTRY TYPE N GROSS SQ. FT. RENTABLE SQ. FT. MEAN MEDIAN MEAN MEDIAN INSTITUTIONS MANUFACTURING SERVICES Banking Health Care Hospitality Information Services Insurance Investment Services Media Professional Services Telecommunications Trade Transportation Utilities Aircraft/Industrial Chemical/Pharmaceutical Computer Consumer Products Electronics Energy Medical Equipment Motor Vehicles Association City/County Cultural Education Federal Religious Research Special District/ Quasi-Government State/Provincial IFMA BENCHMARKS V 21

26 S E C T I O N 3 COST OF OPERATIONS Janitorial Costs Janitorial Staffing Maintenance Costs Maintenance Categories Roads and Grounds Costs Facility Operating Current Replacement Value (CRV) Index Utility Costs Utility Consumption 2008 IFMA BENCHMARKS V 23

27 COST OF OPERATIONS Janitorial Costs Janitorial costs are costs associated with the cleaning of offices, other work areas, restrooms and common support space. These include wages, benefits, staff support, supervision, administration, supplies, paper goods and non capital equipment. A large portion of these annual janitorial costs is the contract service providers costs. Respondents who lease were asked to include costs associated with any supplemental cleaning services provided by landlord. Janitorial costs increased by a percentage point when compared to 2005 data. PERCENTILE $/RSF 99 $ $ $ $ $ $ $ $ $0.06 MEAN $1.30 N=472 FACILITY USE N $/RSF Headquarters 433 $1.47 Non HQ 221 $1.41 Courthouse 127 $1.60 Multi Use 38 $1.43 Factory 27 $1.07 Research Center 25 $1.49 BEST IN CLASS Educational/ Training Center 25 $1.43 Call Center 18 $1.65 Data Center 9 $0.81 Museum 8 $1.63 Correctional 6 $1.36 Clinic 6 $1.78 Retail Branch 5 $1.29 Multi Residential 5 $1.06 Hospital 4 $2.91 Warehouse 4 $0.40 INSTITUTIONS MANUFACTURING SERVICES INDUSTRY N $/RSF Banking 21 $1.50 Health Care 11 $2.19 Hospitality 9 $1.28 Information Services 19 $1.12 Insurance 33 $1.33 Investment Services 22 $1.18 Media 13 $0.88 Professional Services 22 $1.14 Telecommunications 5 $1.18 Trade 16 $1.29 Transportation 6 $1.50 Utilities 17 $1.18 Aircraft/Industrial 15 $1.10 Building/Construction 5 $0.75 Chemical/Pharmaceutical 16 $1.11 Computer 30 $1.14 Consumer Products 18 $1.34 Electronics 19 $1.11 Energy 6 $1.02 Medical Equipment 13 $1.16 Motor Vehicles 9 $0.83 Association 9 $1.31 City/County 56 $1.16 Cultural 5 $1.63 Education 26 $1.10 Federal 505 $1.48 Religious 14 $1.31 Research 8 $1.75 Special District/ Quasi-Government 8 $1.58 State 11 $1.60 COUNTRY/REGION N $/RSF Canada 20 C$1.49 New England 76 $1.67 Northeast 62 $1.68 Mid Atlantic 121 $1.62 Southeast 105 $1.29 Midwest 93 $1.35 North Central 96 $1.58 Heartland 84 $1.44 South Central 95 $1.13 Mountain 82 $1.34 Pacific 138 $ BENCHMARKS V 2008 IFMA

28 COST OF OPERATIONS Janitorial Costs Janitorial costs were analyzed based upon labor component, facility age, hours of operation and level of cleanliness. Descriptions for the levels of cleanliness can be found in the glossary. JANITORIAL FUNCTION PERFORMED BY: N $/RSF In house staff 81 $1.63 Contracted service 370 $1.25 Both 19 $1.55 FACILITY OPERATED: N $/RSF 5 days per week 186 $ days per week 50 $ days per week 186 $1.48 SHIFTS N $/RSF 1 shift per day 148 $ shifts per day 70 $ shifts per day 80 $1.40 LEVEL OF CLEANLINESS N $/RSF Orderly spotlessness 146 $1.45 Ordinary tidiness 273 $1.35 Casual inattention 67 $1.06 Moderate dinginess Unkempt neglect AGE N $/RSF Less than 5 years 33 $ years 131 $ years 75 $ years 72 $ years 131 $ years 269 $1.61 More than 50 years 258 $1.50 OTHER TYPE OF CLEANING N $/RSF Clean room 38 $0.31 Janitorial Staffing FACILITY SIZE (RSF) IN HOUSE FTEs CONTRACTED FTEs TOTAL STAFF Less than 50, , , , , , , , , ,001 1,000, ,000,001 1,500, ,500,001 2,000, More than 2,000, IFMA BENCHMARKS V 25

29 COST OF OPERATIONS Maintenance Costs Maintenance Categories There are a number of activities that are incorporated into maintenance costs. IFMA has consistently used five distinct categories which are detailed below. Most facilities are likely to incur costs in the first three categories, external building maintenance; interior systems maintenance; and roads and grounds. The remaining two cost categories, utility system maintenance and process treatment/environmental system maintenance; are costs incurred by manufacturing facilities or large campuses with central plants. Solid waste management systems, found under environmental system maintenance, differ from solid waste disposal. Solid waste removal costs are broken out under environmental costs. External building maintenance Roof Skin (siding, masonry, sash, glazing, window washing, external doors) Exterior signage Interior systems maintenance Electrical systems (primary and secondary systems, emergency electrical systems, UPS, lighting systems, egress signage, master clocks, fire/life safety systems and alarms and remote monitoring, elevator maintenance/repair) Mechanical systems (HVAC, chillers, boilers, plumbing, extinguishing systems, back flow prevention, refrigeration and non process related pumps) Building and general maintenance (interior walls, doors, ceilings, partitions and interior finishes, pest control) Interior signage Administrative support services trouble desks Roads and grounds maintenance Roadways, sidewalks, parking lots (paving repairs, sealing, striping, parking, roadway lighting, power washing), snow removal, de icing Landscaping (planting, mowing, irrigation) Parking structures (surface repairs, sealing, striping, lighting and drainage systems) Storm sewers (catch basins, manholes, sub surface drainage systems) Underground fire systems and hydrants Utility/central system maintenance Electrical (generation/distribution) Mechanical (steam, hot and cold water systems) Process treatment and environmental systems Process cooling water systems Process gas systems Air discharge scrubbers Waste water systems Water treatment plants Incinerator operation Solid waste management system 26 BENCHMARKS V 2008 IFMA

30 COST OF OPERATIONS Maintenance Costs The maintenance costs detailed below represent expensed maintenance costs, not capitalized improvement costs. The maintenance costs tracked in this survey include all repair, preventive, materials, direct labor and contract costs. Respondents who manage leased properties provided maintenance costs from common area maintenance (CAM) charges in addition to building operating expenses charged by the landlord or property manager. The aggregate maintenance cost found under Total Maintenance will not necessarily equal the sum of the component costs due to the different sample sizes. PERCENTILE TOTAL MAINTENANCE EXTERNAL BUILDING INTERIOR SYSTEMS ROADS AND GROUNDS UTILITY/ CENTRAL SYSTEM PROCESS TREATMENT & ENVIRO. SYSTEMS 99 $11.80 $2.50 $8.26 $4.35 $3.94 $ $5.90 $1.12 $5.07 $1.31 $1.76 $ $4.02 $0.75 $3.66 $0.81 $1.39 $ $2.84 $0.26 $2.07 $0.41 $0.53 $ $1.64 $0.11 $1.18 $0.14 $0.18 $ $1.19 $0.04 $0.58 $0.03 $0.07 $ $0.81 $0.02 $0.30 $.001 $0.02 $ $0.54 $0.01 $0.19 $0.01 $ $0.19 $0.003 $0.07 $.007 $.004 MEAN $2.20 $0.27 $1.67 $0.36 $0.45 $0.23 N = BEST IN CLASS FACILITY USE N TOTAL MAINTENANCE EXTERNAL BUILDING INTERIOR SYSTEMS ROADS AND GROUNDS UTILITY/ CENTRAL SYSTEM PROCESS TREATMENT & ENVIRO. SYSTEMS Headquarters 406 $2.10 $0.07 $1.62 $0.16 $0.12 $0.05 Non HQ 205 $1.91 $0.19 $1.40 $0.32 $0.24 $0.06 Courthouse 125 $1.85 $0.07 $1.59 $0.16 $0.09 $0.03 Multi Use 39 $1.86 $0.31 $1.33 $0.04 $0.09 $0.01 Research center 24 $3.94 $0.37 $2.86 $0.40 $0.49 $0.27 Factory 20 $2.40 $0.21 $1.36 $0.16 $0.14 $0.14 Call center 16 $2.55 $0.11 $1.53 $0.38 $0.14 Educational/ Training Center 14 $2.74 $0.35 $1.66 $0.41 $0.42 $0.07 Museum 9 $2.32 $0.30 $1.66 $0.43 $0.21 Data center 7 $2.66 $0.20 $1.72 $0.49 Multi Residential 5 $0.91 $0.28 $1.56 $0.11 Hospital 5 $3.70 $0.40 $2.09 $0.33 $0.53 Warehouse 4 $0.75 $0.11 $0.43 $0.15 Clinic 4 $1.73 $0.19 $1.45 $0.03 Correctional 4 $1.77 $0.05 $1.63 $ IFMA BENCHMARKS V 27