Study Highlights Most and Least Expensive CRE Markets
York ($11.80 per square foot) and Salt Lake City ($4.87 psf) top the Building
Owners and Managers Association International’s list of most and least
expensive commercial real estate city-markets based on total operating
expenses. Washington, D.C., ($44.40 psf) and Columbus, Ohio, ($12.09 psf)
ranked as the most and least expensive based on rental income.
were released in BOMA’s 2013 Experience
Exchange Report®, which aggregates 2012 rental income and
operating expense figures from more than 5,300 buildings across 250 markets and
115 cities in the U.S. and Canada.
operating expense figures incorporate all expenses related to operating office
buildings, including utilities, repairs and maintenance, roads and grounds,
cleaning, administration, and security, according to the report. Survey
respondents reported a 3.9 percent overall decrease in total operating expenses
from 2011 to 2012, likely due to increasing efforts to “maximize building
efficiency in the face of dwindling income streams.”
incomes calculations include rental income from office, retail, and other spaces,
such as storage.Average rental income dropped 2.9 percent from 2011 to
2012 and property owners and managers continue to compensate for income losses
with greater expense reductions, according to the report.
the complete report.