Welcome!

News Feed Item

BOMA's Experience Exchange Report Reveals Rising Office Incomes as Industry Emerges From Post-Recession Slump

Widespread Densification Trend Reflected in Latest Data

WASHINGTON, DC -- (Marketwired) -- 07/14/14 -- The Building Owners and Managers Association (BOMA) International, in collaboration with research firm Kingsley Associates, recently released the results of the 2014 Experience Exchange Report® (EER®), its annual benchmarking study, which showed increases across most income and expense categories for privately owned office buildings.

Rental income increased 7.2 percent and overall income increased 7.4 percent in 2013 compared to 2012. Total operating and total operating plus fixed expenses saw increases of 5.3 percent and 5.6 percent, respectively. The upsurge in both income and expenses would indicate post-recession growth across commercial real estate properties.

Overall utility expenses rose by 2.4 percent in 2013, ending a four-year downward trend. Nation-wide security costs grew by 5.8 percent in 2013 compared to 2012, with city centers such as Washington, D.C., Chicago and Seattle seeing increases in security payroll costs. Repairs and maintenance jumped 5.9 percent in 2013 as property professionals began investing in maintenance projects that were put on hold during the recession.

Increases also were seen in office occupancy rates and weekly operating hours with a decrease in square footage per office worker. These figures are in line with the industry-wide trend toward densification of office space and could explain increases in building expenses as more people occupy the same space for longer periods of time.

Commercial property owners and managers found themselves with larger tax bills as municipal and state governments search for additional sources of income. Overall reported fixed expenses grew from $4.15 per square foot to $4.50 per square foot, an 8.4 percent increase. Real estate taxes alone grew 10.5 percent, from $3.63 per square foot in 2012 to $4.01 per square foot in 2013.

"Densification of space is reshaping the commercial real estate landscape," said BOMA International Chair John G. Oliver, BOMA Fellow, managing principal for Oliver & Company. "Increases in both income and expenses in this year's EER indicate both strong industry growth, as well as an adjustment to a denser office environment."

Private Sector Office Building Income Trends

  • Rental income for office buildings rose 7.2 percent, from $25.53 per square foot (psf) in 2012 to $27.38 psf in 2013.
  • Total income rose 7.4 percent, from $26.99 psf in 2012 to $28.99 psf in 2013.
  • Base rent for office buildings rose 6.4 percent, from $21.24 psf in 2012 to $22.60 psf in 2013.
  • Pass-throughs rose 3.2 percent, from $4.11 psf in 2012 to $4.24 psf in 2013.
  • Revenue from escalations rose 13.2 percent, from $4.18 psf in 2012 to $4.73 psf in 2013.

Private Sector Office Building Expense Trends

  • Total operating expenses rose 5.3 percent, from $7.72 psf in 2012 to $8.13 psf in 2013.
  • Total operating + fixed expenses rose 5.6 percent, from $11.75 psf in 2012 to $12.41 psf in 2013.
  • Cleaning costs rose 5.8 percent, from $1.37 psf in 2012 to $1.45 psf in 2013.
  • Repairs and maintenance expenses rose 5.9 percent, from $1.87 psf in 2012 to $1.98 psf in 2013.
  • Utility expenses rose 2.4 percent, from $2.10 psf in 2012 to $2.15 psf in 2013.
  • Roads and grounds expenses rose 16.7 percent, from $0.18 psf in 2012 to $0.21 psf in 2013.
  • Security expenses rose 5.8 percent, from $0.69 psf in 2012 to $0.73 psf in 2013.
  • Administrative expenses rose 4.8 percent, from $1.46 psf in 2012 to $1.53 psf in 2013.
  • Fixed expenses rose 8.4 percent, from $4.15 psf in 2012 to $4.50 psf in 2013.

Private Sector Office Building Occupancy Trends

  • Occupancy rates increased 0.5 percent, from 88.8 percent in 2012 to 89.2 percent in 2013.
  • Reported weekly operating hours increased by 8.6 percent, from 62.3 hours in 2012 to 67.6 hours in 2013.
  • Reported square feet per office worker saw a 4.5 percent decrease, from 317.7 square feet per worker in 2012 to 303.4 square feet per worker in 2013.

Now in its 94th year, the Experience Exchange Report is the industry's largest and most comprehensive benchmarking resource, with a database that has three times more office building data than comparable sources and the most medical office building data. The EER provides insights into the performance of the commercial real estate sector with more than 5,300 buildings in 250 distinct markets across 128 cities in the United States and Canada totaling over 1 billion sq. ft. of space.

The EER consists entirely of voluntarily reported data from commercial property owners and managers. The EER allows users to generate customized reports online using a host of search filters, including building size, type, class, location market, submarket and more, and calculates results in real-time. Reports are easily downloadable as both Excel and PDF documents, and a subscription grants unlimited access; there is no limit to the number of reports users can generate. For more information and to subscribe to the 2014 EER, visit eer.boma.org.

About BOMA International
The Building Owners and Managers Association (BOMA) International is a federation of 93 BOMA U.S. associations and 17 international affiliates. Founded in 1907, BOMA represents the owners and managers of all commercial property types including nearly 10 billion square feet of U.S. office space that supports 3.7 million jobs and contributes $205 billion to the U.S. GDP. Its mission is to advance a vibrant commercial real estate industry through advocacy, influence and knowledge. Learn more at www.boma.org.

Documents and/or Photos available for this release:

2013 Private Sector Expenses
Income vs. Expense Changes

To view supporting documents and/or photos, go to www.enr-corp.com/pressroom and enter Release ID: 375667

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that Tintri Inc., a leading producer of VM-aware storage (VAS) for virtualization and cloud environments, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Tintri VM-aware storage is the simplest for virtualized applications and cloud. Organizations including GE, Toyota, United Healthcare, NASA and 6 of the Fortune 15 have said “No to LUNs.” With Tintri they mana...
IoT offers a value of almost $4 trillion to the manufacturing industry through platforms that can improve margins, optimize operations & drive high performance work teams. By using IoT technologies as a foundation, manufacturing customers are integrating worker safety with manufacturing systems, driving deep collaboration and utilizing analytics to exponentially increased per-unit margins. However, as Benoit Lheureux, the VP for Research at Gartner points out, “IoT project implementers often ...
The Jevons Paradox suggests that when technological advances increase efficiency of a resource, it results in an overall increase in consumption. Writing on the increased use of coal as a result of technological improvements, 19th-century economist William Stanley Jevons found that these improvements led to the development of new ways to utilize coal. In his session at 19th Cloud Expo, Mark Thiele, Chief Strategy Officer for Apcera, will compare the Jevons Paradox to modern-day enterprise IT, e...
SYS-CON Events announced today the Enterprise IoT Bootcamp, being held November 1-2, 2016, in conjunction with 19th Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA. Combined with real-world scenarios and use cases, the Enterprise IoT Bootcamp is not just based on presentations but with hands-on demos and detailed walkthroughs. We will introduce you to a variety of real world use cases prototyped using Arduino, Raspberry Pi, BeagleBone, Spark, and Intel Edison. Y...
Complete Internet of Things (IoT) embedded device security is not just about the device but involves the entire product’s identity, data and control integrity, and services traversing the cloud. A device can no longer be looked at as an island; it is a part of a system. In fact, given the cross-domain interactions enabled by IoT it could be a part of many systems. Also, depending on where the device is deployed, for example, in the office building versus a factory floor or oil field, security ha...
Is your aging software platform suffering from technical debt while the market changes and demands new solutions at a faster clip? It’s a bold move, but you might consider walking away from your core platform and starting fresh. ReadyTalk did exactly that. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, will discuss why and how ReadyTalk diverted from healthy revenue and over a decade of audio conferencing product development to start an innovati...
Fifty billion connected devices and still no winning protocols standards. HTTP, WebSockets, MQTT, and CoAP seem to be leading in the IoT protocol race at the moment but many more protocols are getting introduced on a regular basis. Each protocol has its pros and cons depending on the nature of the communications. Does there really need to be only one protocol to rule them all? Of course not. In his session at @ThingsExpo, Chris Matthieu, co-founder and CTO of Octoblu, walk you through how Oct...
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
Whether they’re located in a public, private, or hybrid cloud environment, cloud technologies are constantly evolving. While the innovation is exciting, the end mission of delivering business value and rapidly producing incremental product features is paramount. In his session at @DevOpsSummit at 19th Cloud Expo, Kiran Chitturi, CTO Architect at Sungard AS, will discuss DevOps culture, its evolution of frameworks and technologies, and how it is achieving maturity. He will also cover various st...
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Bradley Holt, Developer Advocate a...
SYS-CON Events announced today that Niagara Networks will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Niagara Networks offers the highest port-density systems, and the most complete Next-Generation Network Visibility systems including Network Packet Brokers, Bypass Switches, and Network TAPs.
SYS-CON Events announced today that Secure Channels will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The bedrock of Secure Channels Technology is a uniquely modified and enhanced process based on superencipherment. Superencipherment is the process of encrypting an already encrypted message one or more times, either using the same or a different algorithm.
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, provided tips on how to be successful in large scale machine learning...