October 1, 2001—According to the 2001 Experience Exchange Report (EER), the Canadian private office market underwent some notable shifts in 2000.
Comparison of the 2000 and 2001 versions of the EER find that while expenses are decreasing, income generated from these buildings is also decreasing. As a result, the 2001 EER indicates that the net operating income (NOI) went from $11.58 per square foot in 1999 to $11.31 in 2000—a decrease of 2.33 percent.
The majority of expense categories witnessed a decrease, however, security expenses rose $0.04/psf, an increase of 10 percent. Surprisingly, utilities expenses reported by survey participants were down by almost 3.5 percent. Expenses associated with repairs/maintenance have also decreased by 2.45 percent since the last edition of the EER was completed. Costs for such items as cleaning administration have remained unchanged since 1999.
As a result, total operating expenses decreased by 2.08 percent and currently rests at $6.12/psf.
The 2001 Experience Exchange Report (EER)—Operating a Cost-Effective Office Building—Your Guide to Income and Expense Data—is available for purchase from BOMA International in book or CD-ROM format. The member price for the book is $160; the CD-ROM is $325. For more information, visit BOMA or call 800/426-6292.
Based on a report from BOMA International
