Ongoing operating expenses are the regular costs required to keep the property or project running smoothly. These expenses occur throughout the life of the investment and affect net returns.
- Necessary for daily operations and maintenance
- Impact cash flow and profitability
- Must be planned for long-term budgeting
Typical Expense Categories
These expenses vary based on the type of industrial or commercial property, but generally include fixed and variable costs.
- Staff salaries and wages
- Utility bills for power, water, and gas
- Routine maintenance and repairs
- Property management and security services
- Insurance premiums and property taxes
- Waste disposal and compliance services
Estimated Range
For a mid-sized industrial setup, ongoing operating expenses may range between twenty lakh and thirty lakh per year, depending on the location, operations, and infrastructure complexity.
- Higher costs in metro or high-demand areas
- Lower costs in semi-urban or smaller towns
- Can be optimized with automation and energy efficiency