These are among the findings reported in the 2005 edition of the Income/Expense Analysis: Shopping Centers, a new benchmarking study published by the Institute of Real Estate Management (IREM). Conducted by IREM since 1991, this annual study analyzes the previous year's operating data for 351 open shopping centers throughout the United States. It is designed to provide real estate professionals and investors with current financial data for evaluating the performance of their properties and for preparing appraisals, budgets, loan requests and sales proposals.
Broken out regionally, median income for open centers in 2004 ranged from $10.98 to $14.90 per square foot versus a range of from $9.83 to $15.54 per square foot in 2003. In both years, the West Coast reported the highest income per square foot. Regional results also revealed that the Southeast had the lowest median operating costs for open centers last year at $2.63 per square foot, whereas the West Coast had the highest costs at $4.87 per square foot.
Insurance and taxes accounted nationally for 44 percent of the typical open center's total operating costs in 2004. Contracted services — such as landscaping, security and trash removal — accounted for 13.5 percent of total operating costs, whereas maintenance/repair and utilities accounted for 10.6 percent and 7.4 percent of costs, respectively.
Finally, the study reported a national occupancy level for open shopping centers in 2004 of 97 percent, exactly the same as in 2003.
