O&M: Operating and Maintenance Expenses in Commercial Real Estate

What is O&M in commercial real estate?

O&M refers to operating and maintenance expenses; such as property and liability insurance premiums, utility installation charges and deposits, maintenance equipment, purchase of office equipment and furniture, congregate items, advertising expenses, management fees, etc. The O&M can account for up to 50% of a building's lifecycle costs. Instituting a rigorous O&M program will not only greatly reduce work site risk and unplanned expenses due to operational faults, but also increase the longevity of real estate assets. 


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