Reconciled service charges by size and park class
CHART 19
Reconciled service charges by size and park classification
Component rates are effected by rounding to 2 decimal places and conversion.
In Retail Parks, economies of scale prevail and costs overall reduce with size. With Shopping Parks whilst there is a reduction up to 200,000 sq ft, above that costs are seen to increase.
Findings
This comparison considers the effect of size on service spend in Parks of varying classification.
The highest rate was £1.78 per sq ft (£19.16 per sq m) for Shopping Parks over 200,000 sq ft while the lowest was £0.66 per sq ft (£7.10 per sq m) in Bulky Goods Parks under 100,000 sq ft.
In Bulky Goods Parks, the overall rate per unit area increased between small and medium sized Parks. Most components were lower with size, but it is security that increased substantially. This could be as a result of both circumstances in the local environment around Parks and qualitative issues.
In Retail Parks, economies of scale prevail and costs overall reduce with size. With Shopping Parks whilst there is a reduction up to 200,000 sq ft, above that costs are seen to increase. Security is again a cause, but significantly the 'administration' and promotions components also contribute suggesting that this increase may be more related to quality of service than a reaction to surrounding conditions.
However, overall size is again seen to be an influence on costs, but this is masked in some classifications by issues of quality of service and local surroundings.