Are your expenses in line with industry trends? According to BOMA International’s recently released benchmarking reports, the
2017 Office EER and
2017 Industrial EER, income and operating expenses in the U.S. increased slightly in both sectors, as compared to last year’s reports.
According to two-year trend data of identical office properties between calendar years 2015 and 2016, total income in the office sector increased from $28.93 per square foot (psf) to $30.60 psf, while total operating expenses increased from $8.20 psf to $8.26 psf. While total operating expenses increased by 0.7 percent, not all expenses increased at the same rate—and some remained flat or even decreased.
For industrial properties, the results of a similar analysis show that total rental income per square foot increased from $5.61 to $6.12. Total operating expenses increased by 4.9 percent, from $1.42 psf in 2015 to $1.49 psf in 2016.