A new report released by the Building Owners and Managers Association (BOMA) International features a list of the most and least expensive commercial real estate city-markets in the United States.
Do you operate an office building in New York City? If so, you could be paying around $7 more per square foot in operating costs than a building owner in Salt Lake City according to a new report released by the Building Owners and Managers Association (BOMA) International.
Find out if your city made the five most, or least, expensive city-markets for total operating costs.
Five most expensive city-markets – Total operating expenses:
- New York City $11.80 per square foot (psf)
- San Francisco $9.66 psf
- Washington, D.C. $9.51 psf
- Santa Monica, CA $8.54 psf
- San Jose, CA $8.47 psf
Five least expensive city-markets – Total operating expenses:
- Salt Lake City $4.87 per square foot (psf)
- Atlanta $5.57 psf
- Phoenix $5.60 psf
- Cincinnati $5.69 psf
- Nashville, TN $5.69 psf
Total operating expenses incorporate all expenses incurred to operate office buildings, including utilities, repairs and maintenance, roads and grounds, cleaning, administration and security. Fixed expenses include real estate taxes, property taxes and insurance. In New York City, average total operating expenses were $11.80 per square foot (psf), while they averaged just $4.87 psf in Salt Lake City. There was a 3.9 percent overall decrease in total operating expenses from 2011 to 2012, underscoring an industry focus on maximizing building efficiency in the face of dwindling income streams. For example, New York City, which also topped the list of most expensive markets for operating expenses last year, saw a decrease of $0.66 per square foot.
The full report is available from BOMA International.