Audit for the Klášter shopping mall resulted in annual savings of 1.4 million
In 2021, the management of the Klášter Brno Shopping Mall was faces with questions they could not answer so easily, such as: What condition is the building really in? Is everything really in compliance with current legislation? How to increase the revenue from the property and both tenant and user satisfaction? For this reason, the building owner decided to have a full audit report done. Now we’ll reveal to you what surprising things it contained.
The audit made an overall assessment of the situation and proposed specific solutions
- CZK 1,400,000 annual savings for the building’s operation
- CZK 3,400,000 cost of implementing energy saving measures
- 2.5 years return on investment
The building was self-managed so far
Brno residents know the Klášter Shopping Mall well. It stands in the city center on Jaselská Street and consists of a buildings complex in early Baroque style. Hundreds of people pass through the area every day: they visit shops, services, and cafés. Until now, Urbanon has managed this large building on its own — technically, legislatively, administratively, and economically and everything has gone well. However, the pressure to improve efficiency steadily increased. And with it came new challenges: Could the management and maintenance of the building be done better? But where and with what to start? The audit report shed light on the situation.
“We felt like we were going out on a limb. The auditors took us apart. They went through every meter of the building and found out absolutely everything: what we do, how we do it and why. The result was a 60-page document that presented us with how to get the most profit and utility out of the property with the least effort and cost. We still benefit from it every day.” PETR PROKŠ, URBANON
The main goal – to find out what to do with the property next
Due to lack of experience, staff capacity and “professional blindness”, the client abandoned the possibility of preparing the audit on his own. He decided to contact experts. The things he hoped to get from working with them were:
- flawless property operation,
- all the processes checked,
- detecting technical deficiencies and correcting them
- and propose a solution aimed at tenant satisfaction, higher revenue from the property, and financial and personnel savings.
“Every audit is a huge challenge for me. A building is a complex organism where everything is connected. A lot of people are involved in its operation. And for it to achieve the expected result, everything must be absolutely in tune – from technical matters to administrative and procedural ones. Sometimes, with our team of specialists, we feel like detectives, technologists and visionaries all rolled into one: we have to grasp the object in its entirety and present a clear and effective solution. And that’s what I love most about it.”
Audit results: clearly quantified, immediately applicable in practice
The audit provided a detailed insight into the current state of the Klášter Shopping Mall and a plan for further development. The audit covered, among other things, electricity supply contracts and billing, the unification of electrical audits, including changes of their frequency, adjustments of insurance contracts and the transition to flat-rate payments for rent-related services, the introduction of an electronic doorman, BMS replacement and the installation of its own modern substation.
The audit also included a summary of the proposed solutions with a breakdown of their costs and benefits. By implementing all the measures, the client will achieve annual savings of CZK 1,400,000 and improved annual cash flow of CZK 2,300,000. The investment return is relatively fast – only 2.5 years.
What are some other benefits of the audit from the client’s point of view?
- Greater peace of mind and an overview of all processes,
- less administrative work,
- certainty that everything is in line with legislation,
- simpler contracts with tenants,
- more effective processes related to operations and property ownership.
Next steps and recommendations in conclusion
The audit report had complex benefits for our client. On its basis, our client decided that it was more efficient to entrust the management and operation of the Klášter Shopping Mall object to professionals.
“Do you own or manage a property? Do you want everything to be in order in terms of legislation, properly set up internal processes, impeccable technical condition of the property and technology, satisfied tenants, higher value of your property and higher revenue from the property? Then I can recommend the audit with a clear conscience. Your investment will pay off. Multiple times and in a short period of time.”