Office Market Turns More Profitable

The U.S. office market ended 2004 on a high note, reporting a 5-percent increase in net operating income (NOI) and a decrease of 6.1 percent in total expenses, according to the data collected and reported in BOMA Intl.’s 2005 Experience Exchange Report (EER). The U.S. private-sector survey results for calendar year 2004 are the weighted average responses of 3,210 buildings representing approximately 700 million square feet of space.

The dollar amount spent on different expense line items provides a mixed picture, but the overall expense data in the 2005 EER indicate that, though total income remained constant at $23.89 per rentable square foot in 2004, the NOI increased by 5 percent ($14.15/rsf vs. $13.51 in 2003). Building management achieved this increase by working to decrease its total operating expenses by 3 percent ($6.32/rsf vs. $6.52), and by decreasing administrative costs, which declined again by 1 percent in comparison with the previous year ($1.22/rsf vs. $1.23 in 2003).

Read more here. (You must purchase the report to get the data.)