Running a commercial facility involves more than paying rent, utilities, and employee salaries. Building owners and operators must also account for maintenance, repairs, equipment, supplies, and other services that keep their properties running smoothly.
According to a recent study by the Building Owners and Managers Association (BOMA) International, building owners and operators spent $275 billion on annual operating expenses in 2025. These expenses include building management, maintenance, and other essential services.
This spending also generated $195 billion in indirect spending on supply-chain goods and services, along with another $140 billion in induced spending. As Kjersten Jaeb, BOMA’s chair and chief elected officer, noted, every building depends on an extensive network of professionals and service providers to operate safely and efficiently.
For building owners and operators, managing these expenses is becoming increasingly important. Investing in smarter systems, efficient operations, and long-term cost-saving measures can help reduce overhead and prepare facilities for future challenges.
Identify the Main Sources of Operating Expenses
Before investing in improvements, businesses need to understand where their facilities are spending the most money. Facility managers should review the following areas to identify unnecessary expenses:
- Energy consumption: Outdated lighting, heating, ventilation, and air-conditioning (HVAC) systems can increase utility bills. Poor insulation, inefficient equipment, and systems running outside business hours can add to the problem.
- Maintenance and repairs: Waiting for equipment to break down before arranging repairs often leads to expensive fixes and unexpected disruptions.
- Space utilization: Poorly used office, storage, and operational spaces can result in unnecessary costs for lighting, heating, cooling, and maintenance.
- Purchasing practices: Unplanned purchases, inconsistent supplier pricing, and poor inventory management can increase spending on equipment and supplies.
Regularly reviewing utility bills, maintenance records, equipment performance, and purchasing patterns can help facility managers identify recurring costs and prioritize improvements that offer meaningful savings.
Improve Energy Efficiency and Building Performance
Energy-efficient equipment helps commercial facilities control long-term utility costs. Upgrading HVAC systems, sealing air leaks, and installing LED lights with occupancy sensors significantly cut waste. Smart building controls automate temperature, lighting, and ventilation based on occupancy, while monitoring tools highlight unusual consumption.
When upgrading, leaders must evaluate total cost of ownership, weighing energy use, maintenance, lifespan, and replacement costs over initial purchase price.
This strategic approach aligns directly with broader industry shifts. The Department of Energy’s Commercial Buildings Integration program targets a 30% reduction in energy intensity across commercial buildings by 2030. This goal highlights the growing importance of energy efficiency in facility management, procurement, and operational planning.
To hit these targets, leaders must prioritize strategic planning and implement energy-efficient practices today.
Upgrade Critical Infrastructure for Greater Reliability
Commercial facilities that rely on specialized infrastructure need dependable equipment to keep daily operations running smoothly. Fuel stations, fleet facilities, and industrial sites, for example, depend on reliable dispensers, storage tanks, piping, and control systems.
Aging components can lead to frequent repairs, higher maintenance costs, and unexpected operational disruptions. Regular inspections and timely upgrades can help businesses avoid these problems while extending equipment life. Working with an experienced fuel facility system solution provider can also simplify equipment procurement, project planning, and implementation.
As highlighted by Shields Harper Group, manufacturer-warranted equipment, replacement parts, and integrated retail technology are important considerations when planning upgrades for fuel facilities and stations. Choosing suitable equipment and planning improvements carefully can help businesses avoid unnecessary project delays, maintain reliable fueling operations, and protect their long-term bottom line.
Shift from Reactive to Preventive Maintenance
Preventive maintenance helps businesses identify equipment problems before they cause expensive breakdowns or operational disruptions. Rather than relying on emergency repairs, facility managers should establish regular inspections for critical assets, including HVAC units, electrical systems, elevators, plumbing, and backup equipment.
Technology can make this process more effective. According to IBM, maintenance teams can use automation, the Internet of Things (IoT), data analytics, and artificial intelligence (AI) to streamline maintenance workflows. These technologies help organizations identify and address potential issues before they lead to costly repairs or operational disruptions.
Equipment sensors and monitoring tools can also help detect unusual performance changes and plan timely interventions.
Maintenance records further help identify recurring faults and determine when equipment needs replacement. By prioritizing assets based on their operational importance, failure risks, and potential downtime costs, businesses can allocate maintenance budgets more effectively and improve facility reliability.
Strengthen Procurement and Essential Supply Management
Unplanned purchasing can drive up operating expenses, especially when businesses pay extra for urgent orders or deal with unreliable suppliers. A structured procurement process helps organizations forecast demand, compare suppliers, and maintain appropriate inventory levels.
This is particularly important for healthcare facilities, where delays in obtaining essential products can affect routine patient care. Wound dressings, incontinence products, urology supplies, and personal care items must be available when needed. Working with a dependable disposable medical supplies provider can help healthcare organizations maintain access to these products.
Rely Medical Supply highlights the importance of ensuring timely access to medical products to meet the evolving needs of healthcare providers.
Healthcare organizations should also monitor consumption patterns, review delivery performance, and establish suitable reorder levels. Excess inventory ties up working capital and increases the risk of products expiring or becoming unusable, while insufficient stock can lead to shortages and costly emergency purchases. A balanced approach helps control spending without compromising supply availability.
Use Data to Improve Facility Operations
Data can help facility managers make better decisions about how buildings use space, resources, and services. Regularly tracking occupancy levels, space utilization, operating schedules, and service requests can reveal areas where resources are being underused or costs are unnecessarily high.
For example, businesses may find that certain areas require less frequent cleaning, security coverage, or other support services based on actual usage patterns. This information can help managers adjust staffing levels, allocate resources more effectively, and avoid paying for services they do not need.
Centralizing operational data can also improve coordination between facility teams, contractors, and service providers. Rather than relying on assumptions or outdated reports, managers can use current information to identify recurring problems and prioritize spending. Over time, this data-driven approach can improve efficiency, reduce waste, and support better long-term planning.
Frequently Asked Questions
What does it mean to future-proof a commercial facility?
Future-proofing means improving a facility so it can operate efficiently, reliably, and cost-effectively as business needs change. This may involve upgrading equipment, improving energy efficiency, adopting better maintenance practices, and strengthening supply management.
Why should commercial buildings follow a preventive maintenance schedule?
Preventive maintenance helps identify equipment problems before they cause expensive breakdowns or disrupt daily operations. Regular inspections and timely servicing can extend equipment life, reduce emergency repair costs, and improve the reliability of essential building systems.
How can technology improve commercial facility management?
Technology can help facility managers monitor energy consumption, track equipment performance, manage building systems, and analyze space utilization. Smart building controls, IoT sensors, and data analytics provide useful insights that support better resource allocation and more informed operating decisions.
Key Statistics on Commercial Facility Operating Costs
| Commercial building operating expenditures (2025) | $275 billion |
| Indirect spending generated by operating expenditures (2025) | $195 billion |
| Induced spending generated by operating expenditures (2025) | $140 billion |
| Target reduction in commercial building energy intensity by 2030 | 30% |
Rising operating costs make it essential for businesses to take a more proactive approach to facility management. From improving energy efficiency and upgrading critical infrastructure to strengthening procurement and adopting preventive maintenance practices, small, well-planned improvements can deliver meaningful savings over time.
The key is to look beyond immediate cost reductions and consider how each investment affects long-term performance, reliability, and resource use. By regularly reviewing expenses, addressing inefficiencies, and planning for future operational needs, businesses can build more resilient commercial facilities while keeping overheads under control.
