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Total Cost of Ownership (TCO)/Lifecycle Cost Management
 
Total cost of ownership (TCO) is a dollar per square foot value ($#/square foot) associated with a facility. It is a calculation of all facilities-specific costs (not including furnishings or non-facility specific equipment) divided by estimated lifespan of the building (30 or 50 years), and the total gross area. Facilities specific costs include
all construction, preservation, maintenance, and operations costs. A strategic asset management practice that considers all costs of operations and maintenance, and other costs, in addition to acquisition costs. TCO, therefore includes the representation of the sum total of the present value of all direct, indirect, recurring and
non-recurring costs incurred or estimated to be incurred in the design, development, production, operation, maintenance of an facility/structure/asset over its anticipated lifespan. (Inclusive of site/utilities, new
construction, deferred maintenance, preventive/routine maintenance, renovation, compliance, capital renewal,
and occupancy costs.) Again, note that land values are specifically excluded.