INTRODUCTION

HOW TO USE THIS FILE

ANSWERS TO FAQ

CLASSIFICATIONS

METHODOLOGY

CHART OF ACCOUNTS

ACKNOWLEDGEMENTS

PROPERTY COUNCIL IN BRIEF

MORE RESEARCH PRODUCTS

DISCLAIMER

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 Benchmarks 2011: Shopping Centres
Copyright Property Council of Australia - 2011

1. INTRODUCTION

The handbook is designed to provide building owners and managers with a reliable tool for evaluating the
performance of buildings and preparing operating budgets.
Information is presented in two formats:
– tables relating to individual cost items; and
– cost data summarised graphically.
Please note, all expense data is exclusive of GST and is for the budget year ending 30 June 2011.
* Due to a small sample of Super Regional, Major Regional and Regional shopping centres, operating cos
have not been published for each individual classification. All centres in these classifications have been
combined into one ‘Regional’ classification.

2. FREQUENTLY ASKED QUESTIONS

How are the statistics presented?

Data is presented in dollars per square metre of Gross Lettable Area – Retail per annum. Area calculations
based on the Property Council’s revised Method of Measurement.

What is the
Expenses accounting
are basis
collected on for collecting
the basis and collating
of the Property Council’sthe statistics?
revised Chart of Accounts for Commercial,
Industrial and Retail properties.
Each expense item has a numbered code that corresponds to the Chart of Accounts.

How is GST reflected in the statistics?

All statistics are exclusive of GST.

Why don’t the numbers in each category always add up?

Totals and sub-totals may not equal the exact sum of their components. The reason for this is that not all
buildings incur the full range of costs published.
For instance, many buildings do not provide car parking facilities. Each statistic, whether an individual cate
or a total of categories, stands on its own
and is an accurate summary of performance within each building category.

What is a median?
The median is the exact midpoint of the cost distribution where 50% of buildings incurred a higher result an
50% incurred a lower result.

What are the operating performance ranges?

The lower range corresponds to the lower 25th percentile and the upper range to the 75th percentile of a
confidence band around the median. The upper range figure indicates that 25 per cent of the buildings of s
characteristics are expected to incur a higher income (or cost); the lower range figure indicates that 25 per
of the buildings of similar characteristics are expected to incur a lower income (or cost).
 3. SHOPPING CENTRE CLASSIFICATIONS
The following shopping centre classifications as endorsed by the Shopping Centre Council of Australia are
in this handbook.

City Centre
Retail premises within an arcade or mall development owned by one company, firm or person and promote
an entity within a major Central Business District.

Total gross lettable area retail exceeds 1,000 square metres.

Key features:
• dominated by specialty shops;
• likely to have frontage on a mall or major CBD road;
• generally do not include supermarkets; and
• often co-exists with large department stores.

Super Regional Centre

A major shopping centre typically incorporating two full line department stores, one or more full line discou
department stores, two supermarkets and around 250 specialty shops.

Total gross lettable area retail exceeds 85,000 square metres.

Key features:
•• comprehensive
one-stop shopping for all needs;
coverage of the full range of retail needs (including specialised retail), containing a
combination of full line department stores, full line discount department stores, supermarkets, services, cha
and other specialty retailers;
• typically includes a number of entertainment and leisure attractions such as cinemas, arcade games and
play centres; and
• provides a broad range of shopper facilities (car parking, food court) and amenities (rest rooms, seating).

Major Regional Centre

A major shopping centre typically incorporating at least one full line department store, one or more full line
department stores, one or more supermarkets and around 150 specialty shops.

Total gross lettable area retail generally ranges between 50,000 and 85,000 square metres.

Key features:
• one-stop shopping for all needs;
• extensive coverage of the full range of retail needs (including specialised retail), containing a combination
full line department stores, full line discount department stores, supermarkets, services, chain and other
specialty retailers;
• typically includes a number of entertainment and leisure attractions such as cinemas, arcade games and
play centres; and
• provides a broad range of shopper facilities (car parking, food court) and amenities (rest rooms, seating).

Regional Centre
A shopping centre typically incorporates one full line department store, a full line discount department store
or more supermarkets and around 100 or more specialty shops.

Total gross lettable area retail typically ranges between 30,000 and 50,000 square metres.

In some instances, all other characteristics being equal, a centre with two full line discount department stor
without a department store, serves as a regional centre.

Key features:
• extensive coverage of a broad range of retail needs (including specialised retail), however, not as exhaus
as major regional centres;
• contains a combination of full line department stores, full line discount department stores, supermarkets,
banks, chain and other specialty retailers; and
• provides a broad range of shopper facilities and amenities.

Sub Regional Centre

A medium sized shopping centre typically incorporating at least one full line discount department store, a m
supermarket and around 40 or more specialty shops.

Total gross lettable area retail will typically range between 10,000 and 30,000 square metres.

Key features:
• provides a broad range of sub-regional retail needs; and
• typically dominated by a full line discount department store or major supermarket.

Neighbourhood Centre
A local shopping centre comprising a supermarket and up to around 35 specialty shops.

Total gross lettable area retail will typically be less than 10,000 square metres.

Key features:
• typically located in residential areas;
• services immediate residential neighbourhood;
• usually has extended trading hours; and
• caters for basic day-to-day retail needs.

Bulky Goods
A medium to large sized shopping centre dominated by bulky goods retailers (furniture, white goods and o
homewares), occupying large areas to display merchandise. Typically contain a small number of specialty
shops..

Key features:
• generally located adjacent to large regional centres or in non-traditional retail locations (i.e. greenfield site
and industrial areas);
• purpose designed, built and operated, generally with a layout of outlets around a central, landscaped are
an overall design and colour theme to promote the appearance of an integrated development; and
• generally greater than 5,000 square metres (GLAR) in size.

4. METHODOLOGY

The Data Collection Process

This survey was conducted between December 2010 and June 2011.
All information collected is for the budget year ending 30 June 2011. Respondents were asked to provide
statistics exclusive of GST.

Establishing a Working Party

The Property Council’s National Research Team oversaw the survey process.

Design Questionnaire
The National Research Team completed the task in consultation with property managers who were targete
supply information in the data collection phase. The design objective was to ensure user friendliness and
therefore maximise response potential.

Sample Selection
A cross section of buildings were targeted for inclusion in the survey. Property owners and
managers were targeted to supply operating cost data.

Data Inputting and Anomaly Correction

The data was subjected to the following error checking stages before detailed statistical
analysis. These stages included:
– checking the database for entry error;
– checking the survey data for obvious anomalies, such as mistakes in totalling;
– identifying extreme building performance figures under each cost heading by comparing actual costs with
basic descriptive statistics; and
– contacting survey respondents to correct anomalies.

Analysis
All expense information was converted to dollars per square metre per annum using Net Lettable Area (off
buildings) or Gross Lettable Area – Retail (shopping centres) as the denominator.
The median for each expense item was calculated – the median being the most appropriate summary stat
for samples with skewed distributions. The median is the exact midpoint of the cost distribution where 50%
buildings incurred a higher result and 50% incurred a lower result.

Range Values
The lower range corresponds to the lower 25th percentile and the upper range to the 75th percentile of a
confidence band around the median. The upper range figure indicates that 25 per cent of the buildings of s
characteristics are expected to incur a higher income (or cost); the lower range figure indicates that 25 per
of the buildings of similar characteristics are expected to incur a lower income (or cost).

Interpretation

Users of this handbook may note expenses do not always equal the sum of the component costs. The rea
for this is that not all buildings incur the full range of costs published. For instance, many buildings do not
provide car parking facilities.
Each statistic, whether an individual category or a total of categories, stands on its own and is an accurate
summary of performance within each building category.
It should be noted that these calculations take no account of the quality of services being provided in a bui

5. CHART OF ACCOUNTS

The Benchmarks 2011 Survey of Operating Costs provides expense data based upon items
contained in the Property Council’s Chart of Accounts for Commercial, Industrial and Retail
properties. An extract of the categories has been included.

For the purposes of this survey electricity costs for code 304000 and 404000 have been
included at code 401000, and public address system costs for code 415000 have been
included in code 420000.

Includes rental income (201000), naming/signage income (201240), car park income (201160),
cleaning recoveries (202150), outgoings recoverable (204000) and any other income.

301100 Municipal/Council Rates, Territory/Government Rates

301110 Water & Sewerage Rates
301120 Land Tax
302000 Insurance Premiums
General insurance, industrial special risk/fire, public liability, machinery breakdown, workers’ compensation
brokerage fees and stamp duty.
304000 Air-Conditioning/Ventilation
Contract fees, consultant fees, service calls, wages, materials, equipment lease charges, water treatment.
Compilers were asked to exclude energy costs of air-conditioning.
305200 Common Area Cleaning
Compilers were asked to provide cleaning costs for common areas only. Includes contract fees, wages, wi
cleaning, grease traps, floor/carpet cleaning, toilet requisites, sanitary services, rubbish removal and
maintenance of cleaning related equipment.
418200 Building/Centre Supervision
and travel allowances.
306000 Car Parking
Contract fees, licence fees, signs, uniforms, materials, wages and cleaning.
401000 Electricity
Common area light and power. All electricity expenses for running air-conditioning and lifts & escalators.
402000/415000 Fire Protection/Public Address
Sprinkler systems, fire brigade monitor fee, pump maintenance and music rental.
403000 Gas & Oil
404000 Lifts & Escalators
Contract fees, wages, materials, repairs, inspection and test fees. Compilers were asked to exclude energ
of running lifts & escalators.
405000 Pest Control
408000 Repairs & Maintenance
Wages, materials, electrical, locks, painting, plumbing and structural.
409000 Emergency Generators
410000 Energy Management/Building Automation Systems
Contract fees, maintenance & service calls, materials & repairs and maintenance associated with energy
management/building automation systems.
411000 Security/Access Control
Fees, wages, equipment monitoring fees, phone line rentals, security callout charges and lease charges
412000 Sewerage Disposal & Sullage
Sullage removal, treatment plant & pump maintenance charges and plant repairs & maintenance.
418256 Public Telephones
418270 Uniforms
Common area light and power. All electricity expenses for running air-conditioning and lifts & escalators.
418280 Salaries & Wages
General staff, office staff, superannuation, other staff and payroll tax.
416000 Signs
Leases, maintenance charges, cleaning and repairs, electricity and licence fees.
417000 Gardening/Landscaping
Wages, contractors’ charges, materials, reticulation repairs & maintenance, plant hire, equipment lease an
landscaping costs.
418000 Administration/Management Fee
Management fees, printing, postage, equipment and office sundries.
Miscellaneous
Auditors fees, licence fees, bank charges, strata levies, leasing fees, agents fees, advertising, valuation an
rent review fees.
305270 Tenant Cleaning
Cleaning costs for Tenant Area only. Includes contract fees, wages, floor/carpet cleaning, rubbish removal
purchase/lease/maintenance costs of cleaning related equipment.

6. ACKNOWLEDGEMENTS
Property Council Research Division: Phone: (02) 9033 1900
John Nguyen - National Research Manager Email: jnguyen@propertyoz.com.au
Tom Foster - Senior Research Analyst Email: tfoster@propertyoz.com.au
Emma Scarf - Research Analyst Email: escarf@propertyoz.com.au
Nichola Watson - Research Analyst Email: nwatson@propertyoz.com.au
Siu Leng Lim - Information Analyst Email: slenglim@propertyoz.com.au
Anderson Lam - Information Analst Email: alam@propertyoz.com.au

7. PROPERTY COUNCIL IN BRIEF

The Property Council of Australia represents the interests of the property community, principally those who
land or invest in the built environment to generate economic returns. The Property Council engages in acti
designed to meet the needs of the
property community.

It aims to create benefits that flow to property owners, tenants and those whose services, products and
entrepreneurial skills play a vital role in generating economic returns.

What the Property Council does for Members

Advocacy

The Property Council of Australia is the leading voice of the property industry. Our mission is to champion
interests of the property sector. While individual firms strive for a competitive edge in the marketplace, only
Property Council of Australia can improve the total climate for doing business.
With the guidance of the Board of Directors, over 100 different committees and 900 committee members, t
Property Council helps create a better business environment for members. The Property Council now enga
in more active lobbying than ever before – more policy development, more contact with politicians and has
higher profile with opinion makers.

Networking
Our events are an ideal opportunity to meet with your peers, hear from high-profile guest speakers and en
your business networks. Networking is one of the Property Council’s great strengths. More than 50,000 pe
attend close to 350 major activities each year around Australia.

Information

The Property Council produces more than 60 publications including standards, best practice guidelines,
business directories and due diligence procedures.
Property Australia magazine is the leading circulation property business journal in the country, and each st
division produces its own newsletters, information updates, technical alerts and has a strong media presen
The Property Council’s website is constantly evolving, providing cutting edge information to property
professionals.

Research

Property Council Research is committed to creating an informed marketplace by providing timely, accurate
information that improves strategic management and operational decision making within the industry. Our
cutting edge research products are as follows:

The Australian Office Market Report is a comprehensive survey of office market conditions around Austral
The respected industry standard, it allows property
professionals to review supply and demand trends Australia wide.

The Property Council’s Shopping Centre Directories provide a comprehensive listing of major shopping ce
in Victoria, Tasmania, Queensland, New South Wales, South Australia, Western Australia, Northern Territo
and the Australian Capital Territory.

Professional Development
Membership of the Property Council of Australia provides access to a growing professional development
program that includes seminars, site visits, thought leading conferences and an extensive number of
educational courses. Short courses cover topics including shopping centre management, leasing, commer
property asset management, and property investment and finance.
Seminars are guided by our team of committee members in specialist areas providing the industry with
professional development that adds value to your business. Our annual Congress conference provides the
environment for members to network with their peers.

Communication

We have got an important message to sell – the property industry is vital to Australia’s
future. The best way to improve our image and influence is to educate the wider community about the hug
contribution we make to their livelihoods. Property is exciting. The industry’s product is tangible, whether it
buildings, harbour tunnels or investment
returns that increase personal savings.
The success of the property industry helps determine the success of other wealth creators. It’s a message
conveyed with pride. In addition to Property Australia, the Property Council’s website, lobbying updates, D
newsletters and member forums all serve to keep our message top of mind.

8. DISCLAIMER

While the material contained in this publication is based on information which the Property Council of Aust
(including its Directors, officers, employees and agents, hereafter referred to as PCA) understands to be
reliable, its accuracy and completeness cannot be guaranteed. This publication is general and does not ta
into account the particular circumstances or needs of any person who may need it. You should obtain
independent advice from suitably qualified consultants and professionals before making any decisions in
relation to the contents of this publication. The PCA is not liable and accepts no responsibility for any claim
or damage of whatever nature suffered by any person or corporation who relies or seeks to rely on any
information, advice or opinion contained in the publication, or otherwise given by the PCA.

Copyright
This publication is copyright. The PCA is the copyright owner. Except as permitted under the Copyright Ac
(Cth), no part of this publication may be reproduced, stored in a retrieval system or transmitted in any form
any means, electronic or otherwise, without the permission of the copyright owner.
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 Benchmarks 2011: Shopping Centres
All expense data is exclusive of GST and is for the budget year ending 30 June 2011.

Market Operating Profile

INPUTS New South Wales City Centre
$/sqm $/sqm $/sqm
COST ITEM LOWER RANGE BENCHMARK UPPER RANGE SUMMARY OF EXPENSE ITEMS
Statutory Charges #REF! 0.0001 1 #REF! #REF! Insurance Premiums #N/A #N/A
Municipal / Council Rates #REF! #REF! #REF! #N/A
#REF! 0.0002 2 #REF! #REF! Air Conditioning / Ventilation #N/A #N/A
Water & Sewerage Rates #REF! #REF! #REF! #N/A #REF! 0.0003 3 #REF! #REF! Common Area Cleaning #N/A #N/A
Land Tax #REF! #REF! #REF! #N/A #REF! 0.0004 4 #REF! #REF! Centre Supervision #N/A #N/A
Other Statutory Charges #REF! #REF! #REF! #N/A #REF!
#REF!
0.0005
0.0006
5
6
#REF!
#REF!
#REF! Car Parking
#REF! Electricity
#N/A
#N/A
#N/A
#N/A
TOTAL STATUTORY CHARGES #REF! #REF! #REF! #N/A #REF!
#REF!
0.0007
0.0008
7
8
#REF!
#REF!
#REF! Fire Protection / Public Add
#REF! Gas & Oil
#N/A
#N/A
#N/A
#N/A
Operating Expenses #N/A #REF! 0.0009 9 #REF! #REF! Lifts & Escalators #N/A #N/A
Insurance Premiums #REF! #REF! #REF! #N/A #REF! 0.001 10 #REF! #REF! Pest Control #N/A #N/A
Air Conditioning / Ventilation #REF! #REF! #REF! #N/A #REF! 0.0011 11 #REF! #REF! Repairs & Maintenance #N/A #N/A
Common Area Cleaning #REF! #REF! #REF! #N/A #REF! 0.0012 12 #REF! #REF! Emergency Generators #N/A #N/A
Centre Supervision #REF! #REF! #REF! #N/A
#REF! 0.0013 13 #REF! #REF! Energy Mgmt / Bldg Automa #N/A #N/A
Car Parking #REF! #REF! #REF! #REF! 0.0014 14 #REF! #REF! Security / Access Control #N/A #N/A
#N/A
Electricity #REF! #REF! #REF! #REF! 0.0015 15 #REF! #REF! Sewerage Disposal & Sulla #N/A #N/A
#N/A
Fire Protection / Public Address System #REF! #REF! #REF! #REF! 0.0016 16 #REF! #REF! Public Telephone #N/A #N/A
Gas & Oil #REF! #REF! #REF! #N/A #REF! 0.0017 17 #REF! #REF! Uniforms #N/A #N/A
Lifts & Escalators #REF! #REF! #REF! #N/A #REF! 0.0018 18 #REF! #REF! Salaries & Wages #N/A #N/A
Pest Control #REF! #REF! #REF! #N/A #REF! 0.0019 19 #REF! #REF! Signs #N/A #N/A
Repairs & Maintenance #REF! #REF! #REF! #N/A #REF! 0.002 20 #REF! #REF! Gardening / Landscaping #N/A #N/A
Emergency Generators #REF! #REF! #REF! #N/A
#REF! 0.0021 21 #REF! #REF! Administration / Managemen #N/A #N/A
Energy Mgmt / Bldg Automation Systems #REF! #REF! #REF! #REF! 0.0022 22 #REF! #REF! Miscellaneous #N/A #N/A
#N/A
Security / Access Control #REF! #REF! #REF! #REF! 0.0001 1 #REF! #REF! Municipal / Council Rates #N/A #N/A
#N/A
Sewerage Disposal & Sullage #REF! #REF! #REF! #REF! 0.0002 2 #REF! #REF! Water & Sewerage Rates #N/A #N/A
Public Telephone #REF! #REF! #REF! #N/A #REF! 0.0003 3 #REF! #REF! Land Tax #N/A #N/A
Uniforms #REF! #REF! #REF! #N/A #REF! 0.0004 4 #REF! #REF! Other Statutory Charges #N/A #N/A
Salaries & Wages #REF! #REF! #REF! #N/A Percentage of Total Expenses

Signs #REF! #REF! #REF! #N/A

Gardening / Landscaping #REF! #REF! #REF!
#N/A
Administration / Management Fee #REF! #REF! #REF!
#N/A
Miscellaneous #REF! #REF! #REF!
#N/A
TOTAL OPERATING EXPENSES #REF! #REF! #REF!
0% 5% 10% 15% 20% 25% 30%
TOTAL EXPENDITURE #REF! #REF! #REF!
For further information please visit the Property Council of Australia website www.propertyoz.com.au or contact the research division on 02 9033 1900.