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  • Corporate

    The Golf Channel hit a hole in one with the revitalization of part of its Orlando campus. The channel turned to Walker Design LLC to create a high-functioning, multi-use space within a 1,200-square-foot area. The space holds conference and training areas plus a genius bar. It has fully integrated audio/visual technology, integrated writable surfaces for informal gatherings and multiple movable seating options that can house 150 occupants. The floor and ceiling patterns reflect lively, pixelated textures to contrast with and balance the static walls. Photography by Chad Baumer Photography.

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  • Healthcare

    UCHealth Longs Peak Hospital in Longmont, Colo., was designed by EYP Health to be an expandable, site-adaptable inpatient chassis that UCHealth could use at other locations. The new 210,000-square-foot hospital provides more than 50 inpatient beds and room to expand to more than 100. The hospital features an intensive care unit, operating rooms, a Level III trauma center and emergency department, advanced cardiac services, a birth center with a Level II special care nursery, a surgery center and 24-hour retail pharmacy, lab and imaging services. Photography by Jim Roof.

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  • Education

    Do football facilities engender championships? Clemson University believes so. The 2016 National Champs invested $55 million in a new 142,500-square-foot facility designed by HOK. The Allen N. Reeves Football Complex further elevates Clemson’s program and promotes the recruitment, training and development of student-athletes. The facility is adjacent to Clemson’s Indoor Football Practice Facility and the existing outdoor practice fields, bringing all football activity into close proximity allowing for more efficient daily operations. Photos courtesy of HOK.

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Corporate

The McMorrow Corporate Facilities Management Report presents news, information, feature articles, conferences, and products and services for commercial/corporate facility executives and administrators, property managers, and specifiers including architects, designers, and engineers charged with maintaining the workplace for optimal productivity, functionality, and retention of the workplace professional.

The McMorrow Corporate Facilities Management Report presents news, information, feature articles, conferences, and products and services for commercial/corporate facility executives and administrators, property managers, and specifiers including architects, designers, and engineers charged with maintaining the workplace for optimal productivity, functionality, and retention of the workplace professional.

Healthcare

The McMorrow Corporate Facilities Management Report presents news, information, feature articles, conferences, and products and services for commercial/corporate facility executives and administrators, property managers, and specifiers including architects, designers, and engineers charged with maintaining the workplace for optimal productivity, functionality, and retention of the workplace professional.

Government

The McMorrow Corporate Facilities Management Report presents news, information, feature articles, conferences, and products and services for commercial/corporate facility executives and administrators, property managers, and specifiers including architects, designers, and engineers charged with maintaining the workplace for optimal productivity, functionality, and retention of the workplace professional.

Sustainable

The McMorrow Corporate Facilities Management Report presents news, information, feature articles, conferences, and products and services for commercial/corporate facility executives and administrators, property managers, and specifiers including architects, designers, and engineers charged with maintaining the workplace for optimal productivity, functionality, and retention of the workplace professional.

BOMA International releases 2017 Office & Industrial Benchmark reports

BOMA EERThe Building Owners and Managers Association (BOMA) International, in collaboration with research firm Kingsley Associates, recently released its 2017 Office Experience Exchange Report (Office EER) and 2017 Industrial Experience Exchange Report (Industrial EER).  The Office EER offers more benchmarking information than any other comparable industry source, and the Industrial EER stands as the only existing benchmarking source in its sector.

According to two-year trend data of identical office properties between calendar years 2015 and 2016, total income in the office sector increased from $28.93 per square foot (psf) to $30.60 psf, while total operating expenses increased from $8.20 psf to $8.26 psf.  In addition, real estate taxes went up 7.9 percent year over year from $4.83 psf to $5.21 psf.

While total operating expenses increased by 0.7 percent, not all expenses increased at the same rate—and some remained flat or even decreased. The chart below compares a number of operating expense line items over the two-year period.

Additional highlights from the top-level office sector data include:

U.S. Private-Sector Office Building Occupancy Figures:

  • The average occupancy rate decreased by 1.1 percent, from 90.12 percent in 2015 to 89.10 percent in 2016.
  • Square footage per office tenant increased by 0.5 percent, from 12,888.27 in 2015 to 12,954.97 in 2016.

U.S. Private-Sector Office Building Income Figures:

  • Total rental income increased by 3.8 percent, from $27.33 psf in 2015 to $28.38 psf in 2016.
  • Base rent increased 2.4 percent, from $23.67 psf in 2015 to $24.24 psf in 2016

U.S. Private-Sector Office Building Expense Figures

  • Contract cleaning increased by 0.9 percent, from $1.14 psf in 2015 to $1.15 psf in 2016.
  • Total electricity expense went down 10.1 percent, from $1.88 psf in 2015 to $1.69 psf in 2016.
  • General administrative office expenses decreased by 61.5 percent, from $0.52 psf in 2015 to $0.20 psf in 2016.
  • Insurance remained consistent at $0.36 psf in 2015 and 2016.

For industrial properties, the results of two-year trend data analysis show that total rental income per square foot increased from $5.61 to $6.12. In addition, total industrial revenue significantly increased from $5.81 psf to $10.26 psf, which is a 76.6 percent jump. This change may be due, in part, to the increase in base rent, which went from $4.46 psf in 2015 to $4.85 psf in 2016 – an 8.7 percent jump itself.  Total operating expenses increased by 4.9 percent, from $1.42 psf in 2015 to $1.49 psf in 2016.

As in the office sector, specific expenses in the industrial sector also fluctuated by line item.  Further changes in operating expenses can be seen in the chart below:

Click chart to enlarge. 

Additional top-level industrial sector findings include:

U.S. Private-Sector Industrial Building Occupancy Figures:

  • The average occupancy rate increased by 1.4 percent, from 96.76 percent in 2015 to 98.12 percent in 2016.
  • Square footage per tenant increased 2.2 percent, from 70,711.40 in 2015 to 72,301.68 in 2016.

U.S. Private-Sector Industrial Building Expense Figures:

  • Exterior building maintenance remained constant at $0.14 psf in both 2015 and 2016.
  • Energy expense decreased 14.3 percent, from $0.07 psf in 2015 to $0.06 psf in 2016.
  • Real estate taxes increased by 5.7 percent, from $0.87 psf in 2015 to $0.92 psf in 2016.
  • Insurance remained the same at $0.09 psf in 2015 and in 2016.

Both the Office EER and Industrial EER consist entirely of voluntarily reported data from office and industrial property owners and managers. With information from thousands of buildings across hundreds of markets in the U.S. and Canada, this year’s Office EER once again boasts the most comprehensive and accurate income and expense data in the commercial real estate industry. The Industrial EER, now in its third year, remains the onlybenchmarking resource in the industry specifically tailored to the industrial sector. The 2017 Industrial EER offers industrial sector data from thousands of buildings across the United States.

The interactive online databases allow users to generate customized reports using a host of search filters, including building size, type, class, market, submarket and more. Reports are easily downloadable as both Excel and PDF documents, and a subscription grants unlimited access; there is no limit to the number of reports users can generate.

For more information and to subscribe to the 2017 Office EER and 2017 Industrial EER, visit eer.boma.org.