The stronger economy and creation of new jobs in 2004 led to a slightly increased building occupancy. Occupancy increased to 88.7 percent in 2004 vs. 88.54 percent in 2003. Even though total income remained constant at $23.89 in 2004, NOI increased by 5 percent ($14.15 vs. $13.51) in 2003. This was accomplished in part because total operating expenses decreased by 3 percent ($6.32 vs. $6.52) and administrative costs declined 1 percent ($1.22/rsf vs. $1.23/rsf) in 2003, the report found.
Security remains a major concern for commercial building management, with an increase of 2 percent in security expenses ($.56 vs. $.55) from the previous year. Building insurance costs decreased slightly to $.37 per square foot of the building in comparison with $.40 in 2003. However, they remain higher than 2002, when the amount spent on insurance was $.33 per square foot of a building.
For more information about BOMA's annual EER, go to www.boma.org.
