by Rebecca Walker — July 21, 2010—Property managers tightly controlled operating expenses throughout 2009, according to the 2010 Experience Exchange Report (EER), released by the Building Owners and Managers Association (BOMA) International in collaboration with Kingsley Associates.
The report analyzed operating income and expense data from “same buildings,” those that submitted data for both their FY 2008 and 2009, whose total rentable area did not change by more than 10 percent and whose occupancy did not change by more than 15 percent. The findings show total operating expenses for U.S. private sector buildings declined by a little more than one percent.
The decrease in total operating expenses illustrates what commercial real estate managers have noted all year, that there is considerable pressure to reduce operating expenses and maintain strong net operating income. Rental income for all U.S. private sector buildings increased marginally, up one percent in 2009. For U.S. private sector downtown buildings, rental income increased 2.5 percent in 2009.
With data from 4,200 buildings in more than 250 markets, the EER is the most comprehensive resource for financial performance information on private and public office buildings in the U.S. and Canada, according to BOMA. It includes national trends analysis and city market-level reports, as well as reports for special use facilities, such as medical office buildings, corporate facilities, financial buildings, agency managed and all electric buildings.
For more information, see the BOMA Web site.
