The TCO Method ® is the brand I’ve built around my consulting service which I’ve been developing since I left my last W2 in April of 2019.

TCO stands for Total Cost of Ownership, and it’s loosely defined as the total cost of a product or service over the cycle of its useful life; it takes into account both direct and indirect costs as well as the cost of disposal, if it applies.

That means it includes purchase price, costs from depreciation, maintenance, operation, repairs, etc,

It’s used frequently in manufacturing and tech, but almost never used in – or applied to – real estate, but it should be.

Real estate, by nature, is long-term.  Buildings stand for decades and even centuries in some cases – we know the repairs and maintenance needed to keep them in good condition can be costly, so why aren’t we more focused on avoiding unnecessary, yet highly predictable, costs?

When you reframe the decision making process for capital expenditures, maintenance, and operations through the lens of Total Cost of Ownership, you shift those from a cost center into a value driver when you stop making decisions based on purchase price alone.

It’s all about making decisions based on the highest value to the business and creating the best return on investment over time.