BOMA report contains income/expense data.Total operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. in U.S. office buildings increased 1.1 percent in 1992 from $8.30 per square foot in 1991 to $8.39 per square foot in 1992, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the Building Owners and Managers Association This article or section needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. (BOMA Boma (bō`mə), city (1984 pop. 197,617), Bas-Congo province, W Congo (Kinshasa), on the Congo River estuary. A port and railhead, it exports tropical timber, bananas, cacao, and palm products. ) International's newly-released 1993 Experience Exchange Report: Operating a Cost Effective Office Building. At the same time, net operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. (total income less total expenses) rose by 0.5 percent -- an increase of $0.04 per square foot on average from $7.51 in 1991 to $7.55 per square foot in 1992. These figures are based on the two-year control sample of properties. "Building owners and managers continue to experience setbacks in net operating income, " stated Thomas B. McChesney, president of BOMA International. "The challenge comes in providing high-quality tenant services while trying to hold down higher operating Fixed expenses, notably property taxes and insurance, constituted the largest portion of expenses in 1992 (32 percent). Utility expenses, which were almost all energy-related, accounted for 22 percent of all expenses, followed by repairs/maintenance (16 percent); cleaning (13 percent); administrative (11) percent); and roads/grounds/security (6 percent). An average corporate facility manager spent $1.87 per square foot more last year to maintain their office space than the typical property manager. Based on the new "Corporate Facilities" special study of the 1993 Experience Exchange Report, it costs $10.94 per square foot to operate downtown corporate facilities, compared to $9.01 per square foot to operate general office space. In the suburban market, the comparative figures were $8.83 versus $7 per square foot per year. The cost discrepancy was mainly caused by substantial increased spending on repairs/maintenance ($0.72 per square foot more) and utilities ($0.44 per square foot more). BOMA International's " 1993 Experience Exchange Report (EER EER - An extended entity-relationship model. )" includes income and expense data for over 4,000 office buildings located throughout North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. : 3,562 U.S. private sector properties, 291 government office buildings in the U.S., 199 privately held Canadian properties and 413 government buildings in Canada. In total, the EER is one of the most extensive databases within the commercial real estate industry covering over 750 million square feet office space in North America. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion