Facilities management plays a foundational role in supporting business operations—ensuring that buildings, infrastructure, and services run smoothly and efficiently. The expenses associated with maintaining and operating assets can quickly escalate if not properly tracked and optimized. But with so many factors to consider, it can be challenging to know where to focus efforts for maximum impact.

In this article, we'll share strategies proven to help reduce operating costs without compromising quality or safety–including ways of integrating modern tools like digital twins to support transparent, efficient and predictive operations.

Common facilities management costs and their considerations

From day-to-day upkeep of equipment to long-term planning for upgrades and renovations, facilities management encompasses a wide array of expenses, each with its own unique challenges.

Asset and equipment maintenance

One of the most significant expenses in facilities management is the maintenance of assets and equipment. The maintenance strategy you choose can have a significant impact on the cost of upkeep and repairs:

• Reactive maintenance addresses unexpected breakdowns or malfunctions at the point of failure and is a common approach, but it can result in unforeseen expenses. 

• Preventive maintenance is a proactive approach to maintaining equipment, systems, and facilities by performing regular, scheduled inspections, though it can represent a much larger upfront cost.

Deferring maintenance can lead to more severe and expensive issues down the line, making it crucial to strike a balance between short-term savings and long-term value.

A key concept to understand in regards to asset maintenance is the total cost of ownership (TCO). This takes into account not just the initial purchase price of an asset, but also the ongoing costs of operation, maintenance, and eventual replacement. Assessing TCO helps to make more informed decisions about which assets to invest in and how to get maximum value from maintenance strategies.

Utility consumption and energy expenses

Utilities represent a major expense. To manage utility costs effectively, it’s important to have a clear understanding of consumption patterns. The exact breakdown will vary depending on the type and size of the facility, but benchmarks can provide a useful starting point for comparison.

The below estimates are average ranges based on the U.S. Energy Information Administration (EIA) and ENERGY STAR benchmarking guidelines. and may vary based on region, climate, and building efficiency.

Supply chain volatility

In addition to internal costs, facilities are subject to external factors. Disruptions such as geopolitical conflicts, natural disasters, labor shortages, transportation delays, and fluctuating fuel or commodity prices can all cause sudden changes in supply availability and costs.

This has been particularly evident in recent years. The lingering aftershocks of the COVID-19 pandemic, combined with rising geopolitical tensions, continue to destabilize global supply chains. Recent policy changes, such as the U.S. administration's reintroduction of tariffs, have added new layers of cost and uncertainty for businesses operating internationally. At the same time, environmental challenges — including extreme weather events linked to climate change — have further strained logistics networks and disrupted production timelines.

As a result, companies across industries have been forced to revise or even withdraw financial forecasts. Today, 91% of supply chain and manufacturing leaders report that global tensions are now a factor in long-term supply chain planning.

Regulatory compliance and safety measures

Facilities must also contend with significant regulatory requirements and safety standards, each with its own financial implications. From building codes and ADA accessibility to fire safety and environmental regulations, non-compliance can result in costly fines, legal fees, and reputational damage. It's essential for facility managers to stay up-to-date on relevant regulations and factor compliance costs into their budgets.

Unplanned repairs and emergency response

Whether it's a burst pipe, a power outage, or a natural disaster, unplanned repairs and emergency response can be a drain on facilities management budgets. In fact, the studies have identified that emergency repairs can cost up to four times more than planned maintenance, due to the need for expedited service, overtime labor, and rush delivery of parts.

Upgrades and renovations

In addition to ongoing maintenance and repairs, facilities need to plan for periodic upgrades and renovations. This includes addressing aging infrastructure, evolving regulatory standards, and improving energy efficiency, safety, or technological capability.

For example, older buildings may need HVAC or electrical system overhauls to comply with updated building codes or environmental regulations set by the U.S. Environmental Protection Agency (EPA). These renovations come with direct costs. They can also disrupt day-to-day operations, leading to further financial impact from lost productivity or the need for temporary space.

While renovation projects may require significant capital investment, they also deliver long-term advantages in the form of increased property value, higher occupancy or productivity rates, and lower operating costs. According to the U.S. Green Building Council, retrofitting facilities to meet LEED (Leadership in Energy and Environmental Design) standards can significantly reduce long-term operating expenses.

Sustainability and ESG standards

Sustainability and environmental, social, and governance (ESG) standards are becoming increasingly important considerations. Organizations face pressure to reduce their carbon footprint and demonstrate social responsibility by implementing sustainable practices like energy efficiency, waste reduction, and green building certifications.

While these initiatives may require an initial investment, they can deliver significant long-term savings in the form of reduced utility costs, lower maintenance expenses, and improved occupant health and productivity.

7 facilities management strategies to reduce operating costs

Reducing facilities management costs isn’t just about cutting expenses—it’s about building smarter systems. Integrated solutions grounded in real-time visibility and data are essential.

One way to reduce costs strategically is to use a digital twin platform to pair operational data with spatial context. Let’s take a look at some specific tactics where applying a 3D digital twin can support cost optimization.

1. Budget forecasting and cost modeling

Effective facilities budget forecasting depends on accurate data, scenario planning, and the ability to align expenditures with organizational goals. A solid forecasting framework should include:

• An inventory of assets with lifecycle data

• Operating cost histories segmented by utility, maintenance, and labor

• Tiered budget scenarios, including:

  • Best-case: Efficient operations, minimal disruptions

  • Likely case: Normal wear, routine maintenance and upgrades

  • Worst-case: Equipment failures, emergency repairs, inflation impacts

With Matterport, teams can:

• Conduct remote walkthroughs to assess areas tied to high-cost maintenance or upcoming upgrades.

• Create budget scenarios based on spatially tagged equipment and infrastructure data.

• Overlay historical performance and vendor information within the digital twin to identify trends and cost drivers.

• Model renovation or space reconfiguration costs with visual accuracy, reducing surprises in CAPEX planning.

This supports data-backed financial planning and empowers teams to make confident, scenario-based budget decisions.

2. Predictive maintenance

Maintenance costs spiral when facilities teams are forced to react to breakdowns. Predictive maintenance uses data insights to anticipate problems and schedule interventions before failures happen. Matterport helps reverse that equation by enabling a shift from reactive to predictive maintenance through asset visibility and integration.

Using a digital twin platform, facilities managers can:

• Tag and track equipment condition and maintenance schedules directly within the model.

• Centralize documentation such as warranties, service logs, and compliance checks in context with each asset.

• Monitor and anticipate issues with spatial and usage data, allowing for early detection of risks before failure occurs.

• Reduce downtime by giving technicians remote access to detailed site information, streamlining diagnostics and preparation before dispatch.

The result is more accurate forecasting of service intervals, fewer emergency repairs, and extended equipment lifespans—all of which drive down total cost of ownership (TCO).

3. Real-time data centralization

When critical information is scattered across disparate systems and departments, it can lead to costly inefficiencies and communication breakdowns. Digital twins act as a single source of truth for all spatial and asset data, and a centralized platform that eliminates silos across departments and external partners.

Matterport supports a cost-efficient data system where you can:

• Digitally tag building systems, equipment, and documentation (warranties, manuals, inspection logs) in annotations inside the facility model.

• Enable seamless handoffs between maintenance, operations, compliance, and external vendors.

• Preserve institutional knowledge in a persistent digital format—critical when staff retire or roles shift.

By centralizing facility data within a digital twin, you create a living, evolving repository of institutional knowledge that can survive staff turnover and ensure continuity of best practices. And because Matterport’s 3D digital twins are easily shareable, collaboration between stakeholders, vendors, and contractors becomes faster and more efficient, reducing both time and labor costs.

4. Remote collaboration and virtual site visits

Every minute spent traveling to and from a site, coordinating with contractors, or conducting in-person inspections is a minute that could be spent on more strategic initiatives.

Matterport’s cloud-based digital twins enable remote access to any facility at any time. Instead of physically visiting a site to assess a maintenance issue or collaborate with a vendor, you can simply log in to your digital twin and get the information you need in a few clicks, reducing the need for in-person visits, accelerating coordination and resulting in:

• Reduced travel expenses and staff costs for inspections, walkthroughs, and training.

• Faster decision-making by providing stakeholders with 24/7 access to up-to-date facility data.

• Improved vendor management, as contractors can bid, plan, and prepare remotely using the digital twin.

With a digital twin, you can provide vendors and contractors with a detailed, visual understanding of your facility before they even set foot on site. This can help them provide more accurate quotes, reduce the need for multiple site visits, and minimize the risk of costly misunderstandings or rework. 

5. Lifecycle vs. one-off cost strategies

While one-off cost-cutting measures may provide immediate relief, they can fail to address the underlying drivers of expense and can even lead to higher costs down the line. A lifecycle cost strategy takes a holistic, long-term view of facility expenses, considering the total cost of ownership for major building systems and assets. Matterport supports a shift from reactive, short-term fixes to a lifecycle-based approach that evaluates total cost of ownership via:

• Spatially tagged digital documentation to plan for major system replacements over time.

• Tracked historical asset performance and planning for refurbishments or upgrades based on actual usage.

• Contingency funds informed by visual assessments and scenario planning.

• Strategic digital inventories of key assets and components to buffer against supply chain disruptions.

6. Data-driven space planning and asset management

Every square foot of underutilized or inefficiently configured space represents a lost opportunity for cost savings and optimization. Digital twins provide accurate spatial data and asset tracking tools to identify and resolve these issues.

Digital twins provide the context needed to:

• Analyze room usage, occupancy patterns, traffic flows and equipment usage to identify underutilized areas or over-allocated space.

• Tag and track equipment to prevent asset loss, optimize utilization, and streamline maintenance.

• Simulate layout changes virtually to test space optimization or plan reconfigurations.

• Support renovation planning with detailed measurements and walkthroughs—cutting change orders and delays.

This drives smarter space usage, reduces operational costs, and ensures assets are accounted for and performing efficiently.

7. Sustainability forecasting

Matterport helps organizations align cost savings with environmental goals—an increasingly critical component of long-term strategy and ESG compliance.

Facilities teams can:

• Overlay energy usage data within the digital twin to identify inefficiencies.

• Model sustainability initiatives virtually—such as lighting retrofits, space consolidations or water conservation techniques—before implementation.

• Optimize space utilization to reduce heating, cooling, and lighting needs, thereby lowering energy costs and emissions.

• Maintain accurate records that feed directly into ESG and sustainability reporting frameworks.

By understanding your facility's environmental impact at a granular level, you can make data-driven decisions about sustainability initiatives and ship the most effective approaches without incurring the costs and risks of physical implementation.