The Benefits of Outsourcing Facility Management

What Is Facility Management and What Does Outsourcing Really Mean?

Facility management involves overseeing all the services that support a commercial property’s functionality and safety. This includes everything from HVAC maintenance and janitorial services to safety inspections, energy efficiency, and tenant communications.

Outsourcing facilities management means partnering with a third-party company that handles some or all of those services on your behalf. Instead of building and managing an in-house facilities team, owners and operators gain access to an experienced, specialized workforce, and the technology, processes, and vendor relationships they bring with them.

This approach isn’t about giving up control. It’s about gaining efficiency, cutting costs, and improving outcomes across your portfolio.

The Hidden Cost Savings of Outsourcing Facility Management

It’s easy to focus on labor costs or service fees when thinking about outsourcing. But the real savings often come from areas that are harder to see upfront. These can include energy optimization, lower liability exposure, and more accurate budget forecasting. When managed by experts, outsourced facility management uncovers inefficiencies you may not even realize are costing you.

Reduced Staffing Costs and HR Burdens

With outsourced facility management, you don’t need to hire, train, or manage a full-time facilities team. That means less overhead, fewer benefits to cover, and lower HR-related costs. Plus, your outsourced team is already trained, certified, and equipped to step in immediately.

Streamlined Vendor Management

Outsourcing gives you access to a single point of contact for managing multiple vendors, from plumbing and electrical to landscaping and snow removal. That centralization often leads to better pricing, faster response times, and fewer invoice headaches.

Improved Energy Efficiency

Professional facility managers are experts in identifying energy waste and upgrading building systems for long-term savings. Whether it’s through LED lighting, HVAC optimization, or smart building technology, these upgrades can significantly reduce utility expenses over time.

By shifting from a reactive model to a proactive strategy, outsourced facility management helps reduce emergency repair costs, unplanned downtime, and inefficient spending.

How Facility Management Impacts Tenant Satisfaction and Retention

Cost savings are great, but in commercial real estate, tenant satisfaction is just as important. Happy tenants are more likely to renew leases, refer others, and treat the property with respect. And nothing impacts satisfaction more than how well the space is managed.

Faster Response Times

Outsourced providers often offer 24/7 support, meaning maintenance issues get addressed quickly. This responsiveness builds trust and shows tenants that their comfort and safety matter.

Preventive Maintenance = Fewer Disruptions

Routine maintenance helps avoid unexpected equipment failures or service outages that frustrate tenants and disrupt their business operations. An outsourced team can ensure these tasks are handled consistently and efficiently.

Professional Communication and Transparency

Facility management partners use digital platforms and tenant portals to communicate updates, track requests, and schedule services. This visibility helps tenants feel heard, informed, and cared for.

Simply put, a professionally managed building is a more desirable place to work or do business, and that pays off in occupancy rates and tenant longevity.

Lower costs and keep tenants happy with Hokanson Companies’ property management services.

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Specialized Expertise and Compliance Made Simple

Managing a commercial property means staying up to date on hundreds of codes, regulations, and best practices. With an outsourced provider, you gain access to trained professionals who are already fluent in all of them.

Compliance Confidence

Whether it’s the Occupational Safety and Health Administration (OSHA), the Americans with Disabilities Act (ADA), or other regulations, outsourced facility management teams ensure your building stays compliant, reducing legal risk and the likelihood of costly fines.

Access to Advanced Technology

From energy monitoring systems to digital work order platforms, professional providers offer tools that improve efficiency, reporting, and decision-making. However, many in-house teams lack the resources to invest in these upgrades independently.

Scalable Service Models

As your property portfolio grows or shrinks, your facility management needs will evolve. Outsourcing allows you to scale services up or down easily, adjusting staffing levels, service scope, and operating budgets without long-term commitments.

Case Examples: Reducing Costs and Enhancing Operations

One real-world example comes from Hokanson Companies’ partnership with a large medical office building. Through outsourced facility management, Hokanson helped:

Reduce operating expenses annually
Implement a mobile work order system for faster response
Increase tenant satisfaction and retention

Hokanson Companies recommended reducing operating expenses by $1.50 per square foot, saving the owners and tenants more than 10%.

Additionally, Hokanson’s work with a regional property owner overseeing over 450,000 square feet of mixed-use space further demonstrates the value of outsourcing. In that case, Hokanson:

Reduced direct operating expenses by more than $1 per square foot
Centralized vendor management for 10+ properties
Supported portfolio-wide compliance upgrades
Provided dedicated, on-site facility management oversight

These projects highlight how strategic facility management services reduce operating costs while improving service delivery across multiple property types.

How to Measure the ROI of Facility Management Services

When evaluating outsourcing, it’s important to track real performance data, not just cost savings. These KPIs help measure the true impact:

Cost per square foot: Tracks how efficiently your facility is being managed.
Tenant satisfaction scores: Gauge how occupants feel about the space and services.
Occupancy and renewal rates: Reflect how well the property retains value.
Service response time: A key indicator of operational effectiveness.

By aligning these KPIs with your business goals, you’ll gain a clear view of whether your outsourced provider is delivering on its promise.

Build Better Results with Hokanson’s Facility Management Services

At Hokanson Companies, our facility management services are designed to reduce your operating costs, improve tenant satisfaction, and support long-term property performance. Discover how our expertise and corporate services can help you run your facility.