Introduction
In its fourth year the Jones Lang LaSalle Retail Park OSCAR remains the most comprehensive survey covering about one quarter of multi-let Retail Park Service Charges in the UK. OSCAR 2007 reflects 2006 reconciled costs and 2007 budgeted estimates.
The introduction of the RICS service charge code of practice effective from April 2007 has led to the presentation of the figures under new headings and totals with comparisons made to results in the previous year using the same headings.
Budgeted costs now take their place as a separate line of statistics giving quite different results and reflecting Landlords' intentions for their Parks, rather than the actual charges for work done. We have this year been able to compare budget estimates for 2006 with the 2006 Service Charge reconciled costs.
The approach of using a basic 'basket' of service costs as an indicator of quality of service provision to Parks, as used in the first three Retail Park OSCARS, has been discontinued this year in favour of 'classification of Parks'. Our reason is that the 'basket' approach can easily be manipulated to justify a level of expenditure while 'classification' is based on unit user and represents to some extent user 'demand'.
In OSCAR 2006 analysis of service costs related to 'classification of Parks' based on unit user was provided. In discussion with others involved in the Retail Park sector 'classification' is generally felt to be a more recognisable measure of 'quality' in a Retail Park. Planning use and therefore unit use is a major determinate of the level of footfall and cost of services provided to a Park. User drives footfall which in turn determines both the type of service required and the level of cost.
The increase in the size of the database has strengthened the guide 'benchmarks' on Parks with varying classifications, sizes and locations and it has been possible to set out service cost breakdowns for virtually all categories.
We hope that these benchmarks will prove useful in demonstrating comparative 'value for money' and increase transparency in Retail Park Service Charges and Service Charge Budgets. OSCAR 2007 continues to include analysis on Repair costs and Health & Safety spend.
Our thanks to our contributors and their managing agents for their very considerable help in delivering the enhanced data and we hope this research together with the individual analysis provided to each are due return for their support. We particularly acknowledge the assistance of Savills, Edgerley Simpson Howe & Partners and King Sturge.