How to Use Income/Expense Analysis Data in Ways You Never Thought Possible?
-
Upload
viviana-mower -
Category
Documents
-
view
221 -
download
1
Transcript of How to Use Income/Expense Analysis Data in Ways You Never Thought Possible?
How to Use Income/Expense Analysis Data in Ways You Never Thought Possible?
Income/Expense Analysis ® Reports
•Reports• Residential• Office• Retail
•Benchmarking•Trends & Historical Data•Case Studies by Ingo Kraus and Nick Schwendeman
•I/E Labs
Income/Expense Analysis Program
Data is King•Evaluate properties and investment options
•Monitor property performance•Stay on top of market trends•Prepare budgets and loan applications•Negotiate beneficial leases
Users
Who uses the data?• Property Managers• Appraisers• Assessors• Financial Institutions• Lenders• Real Estate Consultants & Advisors• Academia • Developers
Five Annual Studies to Aid in Assessing your Property
Income/Expense Analysis® Publications More than 58 years of publishing data• Conventional Apartments• Federally Assisted Apartments• Condominiums, Cooperatives, and Planned Unit Developments
• Office Buildings• Shopping Centers
Conventional Apartments
•3,400 multi-family properties•Presented in:
• Dollars per square foot• Percentage of gross possible income• Dollars per unit
•Breakdowns by age, size and range•Historical trends•Section 42 properties
Conventional Apartments Trends: NOI
Net Operating Income 2012—Unfurnished Buildings Reporting 4 Consecutive Years
In Median Dollars per Square Foot of Rentable Area Building 2009 2010 2011 2012 ’11-‘12 Type % Change Elevator $8.07 $8.49 $8.83 $9.92 12.3% Low-Rise 12-24 4.43 4.41 5.33 5.07 -4.9% Low-Rise 25+ Garden
4.19 4.76
4.55 4.77
4.82 4.95
4.89 5.16
1.5% 4.2%
Conventional Apartments Trends: Rents
Conventional Apartments Trends: Expenses
Federally Assisted Apartments
•1,000 apartment buildings•Data on federally assisted programs
• HUD sections 202, 221(d) 3, 236• Section 8• Rural Development section 515
•Tenant turnover and operating ratios
FAA Trends: Net Operating Income
FAA Trends: Operating Ratios and Turnover
FAA Trends: Total Expenses
Condos, Coops, & PUDS
• 2,100 community associations nationwide
• Grouped by association type and building type
• Tracks:UtilitiesMaintenanceInsuranceTaxesAmenities
CCP Trends: Total Operating Expenses
CCP Trends: Replacement Reserves & Assessments
Office Buildings
• 2,400 private sector office buildings• Downtown and suburban markets • Presented in dollars per square foot• Breakdowns by building size, height, age and rental range• Capital Expenditures• Green Buildings• Medical Office Buildings
Office Buildings Trends: Subtotals
Office Buildings Trends: Net Operating Costs
Median Net Operating Costs 2010-2012—Suburban
By Region In Dollars per Square Foot of Net Rentable Office Area
Regions 2010 2011 2012 ’11-‘12
% Change 1,2,3 $6.70 $6.78 $6.59 -2.8% 4 5.50 5.32 5.35 0.6% 5 5.57 5.53 5.57 0.7% 6 6.78 6.61 6.47 -2.1% 7,8,10 5.47 5.40 5.23 -3.1% 9 5.54 6.07 6.27 3.3% U.S. 5.97 6.03 5.97 -1.0%
Shopping Centers
•Nearly 500 Open Shopping Centers•Income based on types of leases and anchors
•Data by age of center, size, regional areas and national statistics
•Tracks non-enclosed common areas•Special reports
• Leasing fees• Expansion• Tenant turnover• Type of ownership• Gross sales analysis
Shopping Centers Trends: Income
Shopping Centers Trends: Expenses
Benchmarking
•To gauge or measure•A standard point of reference in measuring or judging quality, value, cost, etc.
Benchmarking
•As it relates to buildings, we can benchmark:
• Building performance• Income, Expenses, NOI, etc.
• Tenant turnover• Energy usage• Historical trends• Comparative data
Benchmarking: How?
1. Record building data and operating expense
2. Calculate “per square foot” costs3. Select comparative data4. Calculate dollar and percentage
variances5. Compare data and determine
reasons/justifications for variances6. Set goals, prioritize and implement
expense reduction efforts7. Monitor and document results
Case Study•Ingo Kraus, CPM®
Regional Manager, Altman Management Company, AMO ®
Case Study
•Nick Schwendeman, CPM®
Senior Vice-President, Asset ManagementThe Webb Companies
I/E Labs
I/E Labs--Reports
I/E Labs--Criteria
I/E Labs--Results
Summary
•Five Income/Expenses Analysis® are available from IREM
•Highlighted trend data can be meaningful and provide comparison
•Benchmark and Compare your data•I/E Labs…for trending historical data •Visit our website: IREM.ORG
IREM.org
Matthew O’Hara Income/Expense
Analysis® [email protected](312) 329-6025
Questions? Comments?
We are happy to help you!