The average price a service charge is £6 per square foot – equating to £30,000 per annum for a standard 5,000sqft unit.

All per annum figures, based on a standard 5,000sqft unit, average out at £6 per square foot in the UK, but vary depending on asset type.

The average price of a service charge for industrial property in the UK is £11,000 per annum – with the average price per square foot at £2.

The average price of a service charge on a retail property in the UK is £32,500 per annum – equivalent to £6.50 per square foot.

The average price of a service charge for offices in the UK is £36,000 per annum – roughly £7.2 per square foot.

The Figures

The figures, based on 5,000sqft averages are sourced from a multitude of sources and market commentaries. Data from BDO Propcost Benchmarking Report, RICS Service Charges in Commercial Property professional standard and TPI’s Service Charge Index.

With the available data, these are solely averages and the price of both commercial service charges and residential service charges will be more dependant on factors such as budget, property condition, location and number of tenants.

Explained

Commercial service charges are contributions from tenants within a multi-let asset to support shared services and amenities such as cleaning, maintenance and insurance.

We’ve got a whole blog dedicated to service charges.