September 10, 2004—The income and expense levels of Class “A” buildings are significantly higher than the national composite averages as well as the income reported by class “B” buildings according to the data collected by BOMA Internationals Experience Exchange Report 2004.
Class “A” buildings make up 50 percent of the report within the US private sector sample, whereas class “B” buildings make up 47% of the sample and 3 percent of those reporting were class “C” buildings.
Class “A” buildings reported that their total income per office rentable square foot was $25.17 in 2003 vs. $20.05 reported by their counterparts from class “B” buildings. Their income per total rentable square foot of the building was also 19 percent higher than the class “B” buildings ($23.94 vs. $19.33 reported by class “B” buildings).
Similarly, since the class “A” buildings category includes numerous high profile buildings and corporate facilities, their expenses are generally higher than the class “B” and class “C” buildings. Based on the 2003 data, the most noticeable difference in expenses seems to be a difference of 25 percent in the dollar amount spent on security per square foot of the building between class “A” and class “B” buildings. They reportedly spent $.59 on security per rentable square foot vs. $.44 spent by class “B” buildings. Also, class “A” buildings reported that they spent $1.26 on the administrative costs per square foot of the building vs. $1.13 spent by class “B” buildings — a difference of 10 percent. On cleaning, class “A” buildings spent 4 percent more in comparison with class “B” buildings ($1.20 vs. $1.15). Class “B” buildings, however, reportedly spent 25% more on roads and grounds ($.25 vs. $.20).
To order the Experience Exchange Report (EER), call 800/426-6292. For a detailed description of the EER, visit BOMA.
