Administration costs are expenses paid by tenants, added to rent to form total occupancy costs. These include property tax, technical maintenance, insurance, cleaning services, physical and fire security, internet services and property management. Property taxes represent the largest share, accounting for up to 50% of total operating expenses.

"Operational costs have remained the main challenge in office building management. In 2025, rising service and material prices, together with increasing numbers of employees returning to office, put pressure on budgets," said Maria-Raluca Mihai, Director Property Management at Cushman & Wakefield Echinox. She added that proactive property management approaches remain essential for maintaining building competitiveness, with digitalisation being crucial for organisations to adapt efficiently.

High inflation generated price increases across almost all operational cost categories, from utilities to materials and services. The 9.46% minimum wage increase directly impacted personnel costs for service providers, particularly in cleaning and security. HVAC maintenance and repair costs rose, building insurance premiums increased, and greater office presence - exceeding 50%, sometimes reaching 100% - intensified material consumption and operational staff needs.

The VAT increase to 21% and anticipated tax rises for 2026 create additional pressure on operational costs, affecting both tenants and property owners. According to the fourth edition of the Real Estate Investors Sentiment Barometer by Cushman & Wakefield Echinox, 51% of investors view optimal management of operating costs as the main asset management challenge, up from 39% in 2024.