Operational costs are expenses incurred by tenants which are added to the rent and together compose the occupancy costs. The costs in question include property tax, technical maintenance, insurance, cleaning services, physical and fire security, internet services and property management.
Property taxes, which can represent up to 50% of the total operating expenses, account for the largest share of the operational costs.
“Operational costs have remained the main challenge in office building management. In 2025, the rise in service and material prices, together with the increasing number of employees returning to office, put pressure on budgets. A proactive approach from property management teams continues to be essential for maintaining the competitiveness of buildings. When managing costs, it is crucial to have tools that can process financial information quickly and accurately, so that optimization decisions can be made without delay. The global economy is currently affected by unpredictable factors, and digitalisation remains the solution for organizations to keep pace and adapt efficiently,” commented Maria – Raluca Mihai, Director Property Management, Cushman & Wakefield Echinox.
High inflation has been one of the main factors behind significant price increases across almost all categories of operational costs, from utilities to materials and specialized services.
Additionally, the 9.46% increase in the minimum wage has had a direct impact on personnel costs for service providers, particularly in cleaning and security areas. At the same time, maintenance and repair costs for HVAC systems have risen, building insurance premiums have become more expensive, and the increased presence in the office—exceeding 50%, and in some cases even reaching 100%—has intensified the consumption of materials and the need for operational staff.
The VAT increase to 21% and the possible tax hikes anticipated for 2026 have resulted in additional pressure on operational costs, impacting both tenants and property owners.
In this context, optimal management of operating costs is seen as the main challenge in asset management by the leading developers in Romania, according to the fourth edition of the Real Estate Investors Sentiment Barometer conducted by the Cushman & Wakefield Echinox, the real estate consultancy company.
Asked about the tendencies set to have the biggest impact over commercial property management services, respondents indicated tenant experience & behavior as the main factor (48%), a consistent increase compared with 2024 (36%), followed by Technology and Digitalization (30%).
A healthy market practice is to organize regular tenders for services, roughly every 1.5 years, to secure competitive pricing. Selecting a single provider capable of delivering integrated services (security, cleaning, maintenance) and signing unified contracts for multiple properties, which allows the negotiation of volume discounts, are effective measures to mitigate cost increases.
Similarly, implementing energy‑efficiency measures, such as replacing all lighting with LED systems, installing motion sensors, optimizing HVAC schedules by zone and occupancy patterns, introducing or upgrading BMS systems, and assessing and improving thermal insulation, can have a positive impact on operating budgets.
(English version by Catalina Apostoiu)