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New Income and Expense Data on Office Building Performance Reported in IREM Benchmarking Study

CHICAGO - Total collections for suburban office complexes nationwide in 2011 decreased just 1.3 percent from 2010 levels to $18.22 per square foot of net rentable area.  Downtown properties experienced a 7.3 percent year-to-year collections decline to $20.30 per square foot. Total actual collections for downtown properties were 11.4 percent more last year than their suburban counterparts, versus 18.7 percent more the prior year.
These are among the major findings reported in the 2012 edition of the Income/Expense Analysis®: Office Buildings, the latest benchmarking study published by the Institute of Real Estate Management (IREM®).  This annual research study, conducted by IREM® since 1976, analyzes operating income and costs for 2,140 private-sector office complexes – some containing multiple buildings – in major metropolitan areas and regions in the United States and Canada. For the second time, it also contains financial data for 370 medical office buildings.
The study is designed to help property owners and managers, investors, appraisers, lenders, developers and other real estate professionals evaluate and optimize a buildings performance.  It is an invaluable resource for building better budgets; identifying ways to trim waste, addressing inefficiencies and making needed improvements; preparing feasibility studies, appraisals and loan requests; and much more.
OTHER STUDY HIGHLIGHTS
    •    Total operating costs for suburban buildings in 2011 decreased 0.7 percent from the prior year to $8.32 per square foot of rentable area, while operating costs for downtown properties decreased 1.9 percent to $9.95 per square foot.
    •    Nationally, net operating costs for suburban buildings in 2011 increased 1.0 percent to $6.03 per square foot of rentable area, whereas those for downtown properties decreased 0.3 percent to $7.12 per square foot.
    •    Three of five major expense categories for suburban properties decreased slightly last year, with insurance/services costs experiencing a 2.8 percent decline, real estate and other taxes decreasing  2.7 percent, and  administrative/benefits decreasing 0.9 percent, respectively. Utility costs were the same as the prior year, whereas janitorial/maintenance services increased 3.0 percent from 2010.
    •    Two of the five major expense categories for downtown properties decreased slightly last year versus 2010, with three categories experiencing minor increases. The biggest decrease, 4.9 percent, was for administrative/benefits followed by real estate and other taxes down 2.2 percent. Expenses for janitorial/maintenance services grew 2.3 percent, utility costs rose 1.4 percent, and those for insurance/ services rose a mere 0.8 percent.
    •    In the aggregate, suburban properties proved 16.4 percent less costly to operate in 2011 than their downtown counterparts, with all expense categories less than those experienced by downtown buildings.
    •    The national vacancy rate for suburban properties in operation for 12 months was 11 percent in 2011, the same as in 2010. Downtown properties experienced a 9 percent vacancy rate in 2011 up from 7 percent in 2010.
STUDY EXAMINES MORE THAN 50 SPECIFIC CATEGORIES
The IREM® Income/Expense Analysis® research study contains detailed analyses of office building operating revenues and expenses for major metropolitan areas and suburban markets in the United States and Canada. The income and expense data is presented in dollars per square foot for more than 50 specific categories broken out by building size, height, age, and rental range. 
COMPANION PRODUCT TRACKS DATA OVER 10-PLUS YEARS
A new state-of-the-art product called the Income/Expense Analysis® Online Lab is available as a companion product for the research study. The Lab is an interactive website with 24/7 access that  enables purchasers to download over 10 years of historical office building data  – including over 100 customizable line-item variables – and compare it to the operating data in their individual portfolios.
PRICING
The 320-page Income/Expense Analysis®: Office Buildings report is available to IREM® Members and non-members for $229.95 and $459.95, respectively, plus shipping and applicable state sales tax. Internet users can order the study in soft cover or in a downloadable format by accessing the Publications section (click on Income/Expense Analysis® Reports on the drop-down menu) of the IREM® web site at www.irem.org. As a special incentive, purchasers of the print report also can receive it in downloadable Excel file and PDF format for just $99.99, with the data completely customizable in Excel.
The companion Online Lab is priced at $324.95 for IREM® Members and $649.95 for non-members.  For information on corporate discounts available for multiple users of the product in a given firm, contact Matthew O’Hara at mohara@irem.org, or phone 1-800-837-0706, ext. 6025.
ORDERING INFORMATION
To order any of the  Income/Expense Analysis®: Office Buildings products, contact the IREM® Customer Service Department at 430 N. Michigan Ave., Chicago, IL 60611-4090 or call toll-free to (800) 837-0706, ext. 4650. Credit card orders (VISA, MasterCard, Discover or American Express) can be faxed toll-free to (800) 338-4736 or e-mailed to custserv@irem.org
FOUR OTHER 2012 I/E ANALYSIS STUDIES AND COMPANION LABS AVAILABLE
IREM also has just published new 2012 editions of four other annual Income/Expense Analysis® studies, each of which has a companion Lab. The categories covered: Conventional Apartments; Shopping Centers; Condominiums, Cooperatives & Planned Unit Developments; and Federally Assisted Apartments. Pricing and other information is available in the Publications section (click on Income/Expense Analysis® Reports on the drop-down menu) of the IREM® Web site at www.irem.org
ABOUT THE INSTITUTE OF REAL ESTATE MANAGEMENT 
The Institute of Real Estate Management (IREM®) is an international community of real estate managers across all property types dedicated to ethical business practices and maximizing the value of investment real estate. An affiliate of the National Association of REALTORS®, IREM has been a trusted source for knowledge, advocacy and networking for the real estate management community for more than 77 years.
IREM is the only professional real estate management association serving both the multi-family and commercial real estate sectors and has 80 U.S. chapters, 14 international chapters, and several other partnerships around the globe.  Worldwide membership includes nearly 18,000 individual members and over 535 corporate members.
IREM promotes ethical real estate management practices through its credentialed membership programs, including the CERTIFIED PROPERTY MANAGER® (CPM®) designation, the ACCREDITED RESIDENTIAL MANAGER® (ARM®) certification, the ACCREDITED COMMERCIAL MANAGER (ACOM) certification, and the ACCREDITED MANAGEMENT ORGANIZATION® (AMO®) accreditation. These esteemed credentials certify competence and professionalism for those engaged in real estate management. IREM also offers CPM® Candidate, Associate, Student, and Academic memberships. All members are bound by the strictly enforced IREM® Code of Professional Ethics.
Collectively, CPM® Members in the United States manage nearly 
$2 trillion in real estate assets, including 11.4 million residential units and 10.4 billion net square feet of commercial space. To learn more about the IREM and its chapter network, call (800) 837-0706, ext. 4650 (outside the U.S. call (312) 329-6000) or visit www.irem.org.

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