Building Asset Plan

Expanding on an initial asset value audit, the building asset plan helps forecast capital requirements on building infrastructure. It is developed to be consistent with the environmental plan and the energy management plan.

Buildings follow a life cycle with four phases: Development, Creation, Utilization and Upgrade.

As facilities age, they typically require increased operating and maintenance capital. At some point, routine maintenance yields to outright equipment replacement as components wear out. For most buildings, equipment replacement starts to accelerate at approximately 30 to 40 years of age, a pattern that will continue until the building is nearing 60 years of age at which point the equipment replacement rate levels off. Consequently, any portfolio of building assets requires a steadily increasing infusion of capital in order to keep it operating well.

Over time, buildings not only become more expensive to maintain but they often don’t provide the highest quality functional environment for occupants because of outdated air-handling, air conditioning, communication systems or even handicapped access. To continue to attract tenants or to keep existing occupants productive requires continuous capital infusions that may average two percent per year of building replacement costs. Operating cost savings derived from a GRES/client program can fund some of this renewal as part of planned asset management for the facilities.