Click here to close now.

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 Secure Infrastructure & Services will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Secure Infrastructure & Services (SIAS) is a managed services provider of cloud computing solutions for the IBM Power Systems market. The company helps mid-market firms built on IBM hardware platforms to deploy new levels of reliable and cost-effective computing and hig...
In his session at 16th Cloud Expo, Simone Brunozzi, VP and Chief Technologist of Cloud Services at VMware, reviewed the changes that the cloud computing industry has gone through over the last five years and shared insights into what the next five will bring. He also chronicled the challenges enterprise companies are facing as they move to the public cloud. He delved into the "Hybrid Cloud" space and explained why every CIO should consider ‘hybrid cloud' as part of their future strategy to achie...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading in...
DevOps tends to focus on the relationship between Dev and Ops, putting an emphasis on the ops and application infrastructure. But that’s changing with microservices architectures. In her session at DevOps Summit, Lori MacVittie, Evangelist for F5 Networks, will focus on how microservices are changing the underlying architectures needed to scale, secure and deliver applications based on highly distributed (micro) services and why that means an expansion into “the network” for DevOps.
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, will explore the IoT cloud-based platform technologies drivi...
Agile, which started in the development organization, has gradually expanded into other areas downstream - namely IT and Operations. Teams – then teams of teams – have streamlined processes, improved feedback loops and driven a much faster pace into IT departments which have had profound effects on the entire organization. In his session at DevOps Summit, Anders Wallgren, Chief Technology Officer of Electric Cloud, will discuss how DevOps and Continuous Delivery have emerged to help connect dev...
SYS-CON Events announced today that JFrog, maker of Artifactory, the popular Binary Repository Manager, will exhibit at SYS-CON's @DevOpsSummit Silicon Valley, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Based in California, Israel and France, founded by longtime field-experts, JFrog, creator of Artifactory and Bintray, has provided the market with the first Binary Repository solution and a software distribution social platform.
The basic integration architecture, as defined by ESBs, hasn’t changed for more than a decade. Most cloud integration providers still rely on an ESB architecture and their proprietary connectors. As a result, enterprise integration projects suffer from constraints of availability and reliability of these connectors that are not re-usable across other integration vendors. However, the rapid adoption of APIs and almost ubiquitous availability of APIs amongst most SaaS and Cloud applications are ra...
The enterprise market will drive IoT device adoption over the next five years. In his session at @ThingsExpo, John Greenough, an analyst at BI Intelligence, division of Business Insider, analyzed how companies will adopt IoT products and the associated cost of adopting those products. John Greenough is the lead analyst covering the Internet of Things for BI Intelligence- Business Insider’s paid research service. Numerous IoT companies have cited his analysis of the IoT. Prior to joining BI In...
SYS-CON Events announced today that Harbinger Systems will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Harbinger Systems is a global company providing software technology services. Since 1990, Harbinger has developed a strong customer base worldwide. Its customers include software product companies ranging from hi-tech start-ups in Silicon Valley to leading product companies in the US a...
SYS-CON Events announced today that Dyn, the worldwide leader in Internet Performance, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Dyn is a cloud-based Internet Performance company. Dyn helps companies monitor, control, and optimize online infrastructure for an exceptional end-user experience. Through a world-class network and unrivaled, objective intelligence into Internet condit...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Arch...
SYS-CON Events announced today that Solgenia will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Solgenia is the global market leader in Cloud Collaboration and Cloud Infrastructure software solutions. Designed to “Bridge the Gap” between Personal and Professional Social, Mobile and Cloud user experiences, our solutions help large and medium-sized organizations dramatically improve produc...
"AgilData is the next generation of dbShards. It just adds a whole bunch more functionality to improve the developer experience," noted Dan Lynn, CEO of AgilData, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
SYS-CON Events announced today that Cloudian, Inc., the leading provider of hybrid cloud storage solutions, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Cloudian, Inc., is a Foster City, California - based software company specializing in cloud storage software. The main product is Cloudian, an Amazon S3-compliant cloud object storage platform, the bedrock of cloud computing system...