July 23, 2013: BOMA Report Shows Building Owners Are Maximizing Efficiency
Building Utility Costs Down for Fourth Consecutive Year
Both rental income and overall income decreased in 2012 by 2.9 percent and 3.23 percent, respectively. Building owners and managers are compensating for these income losses by reducing energy use and weekly HVAC-serviced building hours: total electricity expenses in the private sector decreased 12 percent in 2012 compared to 2011, and the average weekly building hours decreased 5 percent, from 70 to 66 hours.
“Today’s commercial real estate market is healthier than it was four years ago, but the recovery is slow,” said Joe Markling, BOMA International chair and managing director of strategic accounts with CBRE. “Property professionals know that strong asset management is more important than ever, and the continued and significant decreases in utilities and other expenses underscore the fact that well-run buildings can thrive in any market condition.”
The Experience Exchange Report is an income and expense data benchmarking tool for the commercial real estate market, providing insight into the performance of more than 5,300 buildings, in 250 distinct markets, across 115 cities in the United States and Canada.
For more information, visit www.boma.org.
Publication date: 7/22/2013