Wielding the Scalpel: New Strategies to Maintain Control of Operating Expenses via Commercial Property Executive

It might seem as if property managers ran through their entire bag of cost-cutting tricks during the past couple of years. In the quest to keep assets in the black, managers renegotiated vendor contracts, reduced staffing levels, trimmed outlays for landscaping and maintenance, and switched out conventional light fixtures for low-usage new bulbs.

“I think most companies have done the easy tightening of the belt already,” said Barry Saywitz, president of the Saywitz Co., a diversified investment and service firm based in Newport Beach, Calif. Many of these cost-cutting methods have become standard during the past several years, which only raises expectations that managers will find ways to reduce costs or keep them flat.

In that regard, there is good news on several fronts. Given the slow pace of the economic recovery, big price jumps for most categories of operating costs appear unlikely. Some categories of expenses call for special attention.

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