Cutting occupancy costs
We aimed to cut service charge costs by 5%. The average forecast saving across our portfolio is 7%.
We recognise that value for money is a high priority for our occupiers, but also that they have high service expectations – and rightly so. We work closely with our managing agents and occupiers to identify opportunities to cut costs, without compromising service.
We generated significant savings by retendering contracts for services such as cleaning, security and landscaping, as well as by reviewing working hours. We also standardised legal fees for Licences for Alterations to improve consistency and deliver better value.
We used the scale of our portfolio to negotiate competitive insurance coverage, reducing premiums for our occupiers by 5% on average. Broadgate Estates also negotiated lower electricity rates for our office occupiers, saving them £680,000 on their energy bills.
We continue to fund the cost of new Regional Centre Managers at our shopping parks, to help retailers to increase footfall and sales. Our management fees are fixed until 2010, with management fees on our retail parks capped at £50,000.
£2.3 million savings for retailers at Meadowhall Shopping Centre 
7% savings on energy use at Glasgow Fort Shopping Park
- BEST
Service Charge Provider 2009 as voted by UK retailers, for the second year running. - £3.5m savings on service charges, with 10% savings per sq ft across our retail portfolio and 3% across our offices.
- £700,000 energy cost savings, thanks to 12% less energy use across our like-for-like portfolio.
- £230,000 landfill taxes avoided for occupiers at our properties, thanks to 5,800 tonnes of waste being re-used or recycled.
- £70,000 water cost savings, thanks to 13% less water use across our like-for-like portfolio.
At Meadowhall
We cut forecast service charge costs for retailers by £2.3 million.
These savings at Meadowhall Shopping Centre in Sheffield are the result of three months of collaborative work between British Land, managing agent, Smith Young, the on-site management team and major retailers.
Successful initiatives included more efficient delivery of security, cleaning and customer services, energy saving measures, and revised preventative maintenance plans, as well as better integrated reporting structures across the on-site management team and managing agent.
More about Meadowhall
18% reduction per sq ft
Winner of our Cost Reduction Award 2010
At Glasgow Fort
We cut energy costs by an estimated 7%.
The team at Glasgow Fort Shopping Park worked through the night to identify the best balance of lighting levels. They fine tuned the time switches and introduced additional circuit controls to strike the optimum balance between safety and economy.
This will contribute to a reduction in service charges, forecast to save retailers £90,000 this year. Savings were achieved across a number of areas as well as energy use, including security, cleaning and maintenance.
More about Glasgow Fort
£4,000 saving on energy bills for retailers
50,000 kWh less energy use
