institute of real estate management of the national...

Office Buildings 2017

Institute of Real Estate Management of the National Association of Realtors® 2017

Data Collection Booklet Send Us Your Office Building Data and Receive Our Research Study Free Research Study Free Simply fill out the attached data collection form for a building you own or manage and submit the form by April 1, 2017** in order to ensure that it is accepted for the 2016 sample and receive a FREE electronic* copy of the publication. Or, you may submit your data between April 2 and April 30, 2017** and receive the electronic* publication at a 50% discount. Please only submit projects with 5,000 or more square feet which were in operation for all 12 months of 2017. By submitting data on the buildings you own or manage, you will receive a free electronic* copy of the 2017 IREM®’s Income/Expense Analysis®: Office Buildings, the IREM® year-long research study which sells to the public for $515.00. Our coding techniques ensure sure that all information is held in strict confidence. Only the totals are published, never individual statistics or names. All Contributors will receive a complimentary electronic

individual building report (IBR) for each property accepted. Please feel free to forward any comments or suggestions for improving this form to the Income/Expense Analysis® Department. This publication is well known as an essential tool to individuals in all phases of the real estate industry. Share your experience with thousands of professionals across the country and receive our study absolutely free. You DO NOT need to be a member of IREM to submit data. *IREM® is paperless. Contributors will now receive an electronic copy of the publication. IREM will notify you once the electronic publications are available, please include your email address on the data collection form. **IREM® and BOMA no longer will utilize the Joint Income Expense form. If contributors wish to provide data to BOMA, contributors will need to complete the BOMA EER survey form and submit it directly to BOMA.

About the Publication The 348-page publication contains detailed analysis of office buildings (downtown and suburban) operating revenues and expenses for 184 major metropolitan areas and regions in the U.S. To facilitate your analysis of individual markets, the operating data is also broken out by building age group, building size, building height and building rental range. Drawn from a sample of over 2,300 private sector office buildings, this is an invaluable tool for anyone involved with office building investments. Preparing an operating budget for a building in your portfolio?

We give you financial comparables in dollars per square foot for over fifty specific categories of income and expenses for each metropolitan area reported. This helpful reference also includes unique energy consumption analysis to help you determine if your building’s energy use and expenditures are in line with similar properties. Recent trends in office building operations are also analyzed, including fluctuations in operating ratios and vacancy levels and an analysis of leasing commissions. The green building section includes a breakdown of building certifications and green systems as well as a utility comparison report.

Important Deadline Information All forms must be postmarked by April 30, 2017 in order to be accepted.

• Those who submit data by April 1, 2017 will automatically receive the electronic* publication FREE of charge.

• Those who submit their data between April 2 and April 30, 2017 will be offered a copy of the electronic* publication at a 50% discount.

A Special Bonus for All Contributors By submitting data on the properties you own or manage, you will receive an electronic individualized building report (IBR) of each project accepted. Your building’s operating figures will be processed and analyzed, allowing us to provide you with the following information about your property:

• A detailed comparison of your property with operating results of similar properties in your city and region.

• Your figures calculated as dollars per square foot of Gross Area of building.

This computerized summary draws on IREM®’s enormous database to provide you with a convenient, detailed analysis specifically tailored to your location and type of property. Remember, in order to receive a copy of the electronic* publication FREE of charge the forms must be postmarked by April 1, 2017. It is perfectly acceptable to use end-of-year unaudited figures. Send your data now!

2017 Office Buildings


Definitions and Instructions Definitions: Q1-5) The name and mailing address of the person to receive

the book and other information. Q6) Check "Yes" if you are a member of IREM. Q7) The name, telephone number and e-mail address of the

person preparing this form. Q8-11) The name and street address of the building being

reported. Q12) Floor Standard Definitions: The appropriate box

checked indicates the method of floor measurement used to determine the building's square footage. (Note: if reporting in square meters, indicate this directly on the survey form.) If convenient, we prefer that you use the 1996 BOMA Standard Method of Floor Measurement "Rentable Area".

1989: The Rentable Area of a floor shall be computed by measuring to the inside finished surface of the dominant portion of the permanent outer building walls, excluding any major vertical penetration of the floor. No deductions shall be made for columns and projections necessary for the building. Also, do not include a pro-rata share of the building common area. Include space such as mechanical room, janitorial room, restrooms and lobby of the floor as long as they serve only the tenant(s) on that particular floor.

1996: The revised BOMA Standard (1996) is a building-wide method of measurement, allowing the spaces that benefit all the building occupants to be measured and allocated on a pro-rata basis: that is, in addition to floor by floor measurement, tenants are now assessed a portion of the building common area to calculate the "Rentable Area". This is the major difference from the old standard. In the end, the new Standard results in a total building rentable measurement that would have been derived using the old Standard (1990). (American National Standard Institute, Inc (ANSI) Z65.1-1996)

Q13A) Total rentable square footage dedicated to office uses. Include space occupied by the owner for office workers, manager, and/or single occupants. Include space such as computer rooms, copy/mail rooms, and lunchroom which serve office tenant operations.

Q13B) Total Rentable square footage of retail areas. Include space for cafeteria, fitness center, and child-care facility, if operated as stand-alone entities and are not subsidized as amenities (see the definition of Other space for amenities, Question 13C.) Also, treat bank lobby space as retail. Total non-office square footage for residential, industrial, and/or other non-office, non-retail space excluding parking area. Include space for amenities such as cafeteria, fitness center, childcare center etc.

that are underwritten by the building owner. For public sector buildings, treat court room/courthouse waiting room, cells/detention room in a police station, and the process space in a post office as other space.

Q13C) Total rentable square footage of the building. The summation of Q13A, B, and C. BOMA Total Rentable Square Footage = IREM Gross Rentable Office Area. (See figure 1)

Q13D) Gross Building Area is computed by measuring to the outside finished surface of permanent outer building walls without any deductions. All enclosed floors of the building including basements, mechanical equipment floors, penthouses, and the like are included in the measurement. (From ANSI Z65.1-1996) For the purpose of this publication please exclude all parking spaces and parking garages from this calculation. The Gross Building Area must be greater than or equal to the Total Rentable Area (Q13D). BOMA Gross Building Area = IREM Gross Area of Entire Building.

Q13E) Report the Usable Square footage for the space identified in Q13A-C. Usable area shall be calculated by measuring the area enclosed by the finished surface of the office side of the corridor and other permanent walls; the dominant portion or a major vertical penetration, and the center of the partitions that separate the area being measured from adjoining Usable Areas. No deductions should be made for column and projections necessary to the building. Also do not include areas such as mechanical rooms, janitorial rooms, restrooms, upper level floor lobbies, and any major vertical penetrations of a multi-tenant floor. BOMA Usable = IREM Net Rentable. (See figure 2)

Figure 1: Example of IREM’s Gross Rentable Office Area: Gross Rentable Area shall include all area within outside walls less stairs, elevator shafts, flues, pipe shafts, vertical ducts and balconies.

2017 Office Buildings


Definitions and Instructions Figure 2: Example of IREM’s Net Rentable Office Area: Net Rentable Area shall include all area within outside walls less stairs, elevator shafts, flues, pipe shafts, vertical ducts, balconies, air conditioning rooms, janitorial closets, washrooms, public corridors and such other rooms not actually available to the tenant for furnishings and personnel.

Q14) Report the total number of parking stalls and the

parking ratio (divide the total number of stalls by the Gross Building Area (Q13E) and multiply by 1000).

Q15) The number of buildings reported/included with this form. We prefer one building per survey instrument.

Q16) Year the building was opened for use. If more than one building is included with this form give the year opened for the largest (by square footage) building reported.

Q17) Number of above ground floors. If more than one building is included with this form give the number of above ground floors for the largest (by height) building reported.

Q18) The location of the building relative to its urban character.

Q19) The nearest “major” city to the building. Example, Bethesda in Maryland would report as Washington D.C.

Q20) Is a fee-based third party used to manage or operate this building?

Q21) Check the appropriate box that will describe the office building's classification: Class A - Most prestigious buildings competing for premiere office users with rents above market average for the area. These buildings have high quality standard finishes, state of the art building systems and amenities, exceptional accessibility, and a definite market presence.

Class B - Buildings competing for a wide range of users with rents in the average range for the market. Building finishes are good to fair for the area, and systems are adequate but the building does not compete with Class A at the same price. Class C - Buildings competing for tenants requiring functional space at rents below average for the market.

Q22) Check the box that best describes the office building's primary use: Medical - Building with at least 75% of its space dedicated to doctor's and/or medical related offices. Includes owner-occupied and single tenant buildings if the owner/tenant is medical related. Financial - Building with at least 75% of its space dedicated to financial offices (banking, insurance, investment firm). Include owner occupied and single tenant buildings if the owner/tenant is financial related. Government - Building owned by the government and operated by either public or private sector. Corporate Facility - Owner occupied facility (owner must occupy at least 75% of the square footage). These participants are also encouraged to complete the attached corporate facility supplemental questionnaire. Check "Yes" if the facility is the corporate headquarters. Industrial - Building that is specially zoned for heavy or light manufacturing and warehouse operations. General Multi-tenant building - Includes buildings with owner-occupied space if there are other tenants in the building. Office Condominium - Building privately owned and independently and exclusively used by a unit owner. Indicate if management fee is included as a CAM reimbursement expense. Single-Purpose - Single tenant in a non-owner-occupied building (Sale leaseback type situation or leasing entire building). Other - Any buildings that do not fit into the above categories.

Q23) Indicate the regular or standard operating hours (when HVAC is supplied without after hour charges) of the facility. Total hours cannot exceed 168 hours.

Q24) The number of office tenants (leaseholders) located in this building. Include any owner or property manager that occupies space. Break out the leaseholders according by office and retail types.

Q25) Average number of office tenants (employee population) working in the building throughout the year. Exclude building operation related staff/employees.

Q26) Square footage occupied by building owner for office space and or property management.



Definitions and Instructions Q27) Indicate the number of dedicated, on site, full time (or

part-time equivalent) building maintenance and engineering staff (outsourced contractors included) who work in this building. Sum up part time employees based on the number of hours they work per week (40 hours = 1 full time employee). Exclude all janitorial related staff.

Q28) Give the average occupancy rate for the office portion of the building for the year.

Q29) Give the average occupancy rate for the retail portion of the building for the year.

Q30) Current asking rents (based on a gross full service lease) for vacant space in the building. Please report in dollars per square foot.

Q31) Amount of money in dollars per rentable square feet that the building owner allows for tenant alterations for a new tenant based on a 3-year and/or 5-year lease after the building is initially filled.

Q32) Report all fees for supervising alterations paid by the owner to the managing agent.

Q33) Report the rentable square footage of the area affected by alterations on which the supervising fees were based.

Q34) Services provide by building management to retail spaces only: Cleaning - The number of retail rentable square feet for which building management provides cleaning services. Repairs/Maintenance - The number of retail rentable square feet for which building management provides repair/maintenance related services. Utilities - The number of retail rentable square feet for which building management provides or sells utility services.

INCOME SECTION Q35) Check the appropriate box to indicate if you are reporting

in U.S. or Canadian dollars. Q36) Office Rent: Base Rental and operating expense

escalation/recovery income from office areas. Office Rent contains the income detail categories of base rent, additional rent (pass-throughs and/or operating cost escalations), base rent escalators, lease cancellations, and rent abatements. [30 000]

Q36A) Base Rent: The total minimum rent payments under all lease agreements in this building. [30 100]

Q36B) Additional Rent: Income received from the tenant per the lease agreement, generally come in two forms, Pass-throughs and/or Operating Cost Escalations. Both are possible under the same lease agreement. [30 200] [30 300]

Q36B1) Pass-throughs: Normally costs that are 100% "passed through" to the tenant on a dollar for dollar basis equal to the landlord's expenses. For example, the landlord pays

$1.00 per square foot for cleaning; they pass through $1.00 per square foot in cleaning expenses to the tenant. [30 200]

Q36B2) Operating Cost Escalations: Items of additional rent that are calculated as the tenant's portion above a predetermined number such as a stop, base year amount, negotiated amount and so forth. For example, during a tenant's first year of occupancy operating expenses were $6.00 per square foot. This would be considered the stop or base year, depending on the lease language. If the expenses rise to $6.50 the following year, the tenant is responsible for an additional $0.50 per square foot as an operating cost escalation. [30 300]

Q36C) Base Rent Escalators: Payment based on a provision within the lease that allows for increase in accordance with an index such as the Consumer Price Index (CPI). [30 400]

Q36D) Lease Cancellations: Amount of money that a tenant pays for the privilege of canceling their lease, usually based on a calculation of future rental payments due. [30 500]

Q36E) Rent Abatements: Free rent. Depending on the landlord's accounting system, it is usually shown as a contra-asset account to minimum or base rent. [30 600]

Q36F) Total or summation of Q36A through Q36D minus Q36E equals Total Actual Office Income.

Q36G) Vacancy/Rent Loss: Additional rental income (based on gross full service lease) that would be realized if the office portion of the building was 100% occupied. Two ways to calculate: Q30 (Asking rents) x vacant rentable office square footage or Divide Q36F (Total Actual Office Income) by the occupied rentable office square footage to give you average rental income per square foot, then multiply this $/rsf number by the vacant rentable office square footage.

Q36H) Gross Potential Office Income is a summation of Q36F and Q36G.

Q37) Retail Rent: Base rental and operating expense escalations/recovery and percentage rent from retail space in the office building grossed-up to 100% occupancy (use formula outlined under Q36G). Include retail tenant payment for non-lease provided energy sales and for services not provided for by or include in the lease document. [31 000]

Q38) Other Area Rent: Rental Income from "other" areas such as storage space, antenna, riser space rental, UPS, telecommunication providers, etc grossed-up to 100% occupancy (use formula outline under Q36H). [33 000]


Institute of Real Estate Management of the National Association of Realtors®

2017

Definitions and Instructions Q39) The total or summation of Q36H (Gross Potential Office

Income), Q37 (Retail Rent), and Q40. Q40) Gross Parking Income: All income derived from the

operation of parking facilities. [32 000] Q41) Tenant Service Income: All income derived from services

rendered to/for the tenants outside the scope of the lease documents include such things as after-hours HVAC or electricity, cleaning, repair/maintenance, security and so forth. [34 000]

Q42) Retail % Income: Percentage rent from retail store sales. Q43) Miscellaneous Income: All non-rental income. Include

income from such things as vending machines, pay telephones, signage, ATMs, late charges, interest, special events, health club, recycling, concierge, and so forth. [35 000]

Q44) Total or summation of Q39 (Total Rental Income), Q40 (Gross Parking Income), Q41 (Tenant Service Income) Q42 (Retail % Income) and Q43 (Miscellaneous Income).

Q45) Check "YES" if the income figures reported in question Q36 include rental income for owner-occupied space. If "No", make sure you completed question Q26.

EXPENSES SECTION CLEANING Q46) Cleaning: All required items for both daytime and

nighttime cleaning of offices, public areas, atriums, elevators, restrooms, windows, and so forth. Includes upkeep and ordinary expenses, as well as replacement of cleaning equipment and supplies. Does not include any expenses for machine rooms and other restricted access areas. [40 000]

Q46A) Payroll: Payroll, taxes, and fringe benefits for directly employed cleaning personnel including salaried supervisors or managers. [40 100]

Q46B) Routine Contract Services: Routine day/evening cleaning expenses contracted to outside firms. [40 200]

Q46C) Window Washing: list costs of all contracted window-washing services. [40 300]

Q46D) Other Specialized Contracts: Includes all other cleaning services not covered by the routine contract service or window washing, such as drapery and carpet cleaning, etc. [40 300]

Q46E) Supplies/Materials: Includes ordinary cleaning supplies and materials, paper products, plus directly expensed upkeep or replacement of cleaning equipment, directly expensed tools/equipment and personnel uniforms. [40 400]

Q46F) Miscellaneous: All other cleaning related expenses not captured above excluding trash removal costs (see Q46G). [40 400]

Q46G) Trash Removal/Recycling: Includes all trash removal and recycling expenses including medical and hazardous material waste removal. [40 500]

Q46H) Total or summation of all cleaning expense line items (Q46A through Q46G).

REPAIRS/MAINTENANCE Q47) Repairs/Maintenance: All expenses for elevators,

HVAC, electrical, structural/roof, plumbing, and other building maintenance (including common areas, parking lots and general upkeep). Total payroll from individual item categories should be included in Payroll. Contract services and designated supplies should be included in individual item categories. [41 000]

Q47A) Payroll: Payroll, taxes, and fringe benefits for directly employed operating engineering and maintenance personnel, including salaried operating or chief engineer. [41 100]

Q47B) Elevator: Includes all elevator contract services, fees, directly expensed tools/equipment, and supplies/materials/miscellaneous expenses. [41 200]

Q47C) HVAC: Includes all HVAC contract services, fees, directly expensed tools/equipment, and supplies/materials/miscellaneous expenses. [41 300]

Q47D) Electrical: Includes all electrical contract services, fees, directly expensed tools/equipment, and supplies/materials /miscellaneous expenses. [41 400]

Q47E) Structural/Roof: Includes contract services, fees and supplies/materials/miscellaneous expensed during the operating year. [41 500]

Q47F) Plumbing: Includes contract services, fees and supplies/materials/ miscellaneous for domestic water and sewage services. Does not include piping for the mechanical system, sprinkler/standpipe system. [41 600]

Q47G) Fire and Life Safety: Includes contract services, supplies/materials/miscellaneous, maintenance contracts, monitoring contracts, and fees. [41 700]

Q47H) General Building Expenses (Interior): Includes directly expensed outlays for building interiors such as pest control, signage, painting, music, carpet repairs, and other interior surface repairs. [41 800]

Q47I) General Building Expenses (Exterior): Includes directly expensed outlays for building exteriors such as exterior window replacement, repainting, power washing, repainting, and so forth. [41 850]

Q47J) Parking Lot: Include costs of all contracted (or in-house) services for parking lot repairs and maintenance. All non-repair parking maintenance costs are reported under Q49B or Q56.

Q47K) Miscellaneous: All other repair/maintenance related costs/expenses not captured above.



Definitions and Instructions Q47L) Total or summation of all Repair/Maintenance line

items (Q47 A through Q47 K).Portion (dollar value) of the total repair/maintenance expense (Q47L) that is outsourced or contracted out. If the entire repair/maintenance function is outsourced or a single source contract Q47M will equal Q47L.

UTILITIES Q48) Utilities: All utilities expensed to the building. Includes

any energy that is sub-metered, even if you are receiving income for it; show the total expense, not the net expense after tenant reimbursement. If the utilities are directly metered to the tenant, then estimate the expense and indicate on the form that your numbers are estimated by writing "estimated" in the margin. [42 000]

Q48A) Check "YES" if the building's energy is supplied by electricity only.

Q48B) List the primary fuel source for your building HVAC system; examples include Coal, Electricity, Gas, Fuel Oil, Purchased Steam, etc.

Q48C1&3) Electricity: Total gross electrical utility expense for the building. [42 100] Please breakout your Electricity costs by HVAC charges (Q48C1) and Non-HVAC charges (Q48C3) if possible. If a breakout is not possible, report total electricity costs on line 48C1 HVAC.

Q48C2&4) Total electrical consumption of the building reported in kilowatt hours (KWH). Please breakout your Electricity consumption by HVAC charges (Q48C2) and Non-HVAC charges (Q48C4) if possible. If a breakout is not possible, report total electricity consumption on line 48C2 HVAC.

Q48D) Gas: Total gross gas utility expense for the building. [42 200]

Q48E) Total gas consumption of the building report in 100 cubic feet. (CCF)

Q48F) Fuel Oil: Total gross fuel oil utility expense for the building. [42 300]

Q48G) Total fuel oil consumption of the building report in U.S. Gallons.

Q48H) Purchased Steam: Total gross purchased steam utility expense for the building. This is the cost of utilizing steam purchased from any outside source. Similarly, include the purchase of hot water expense here. [42 400]

Q48I) Total purchased steam consumption reported in 1000 pound units.

Q48J) Purchased Chilled Water: Total gross purchased chilled water utility expenses for the building. [42 500]

Q48K) Total purchased chilled water consumption reported in 1000 Ton-hours.

Q48L) Water/Sewer: Total gross water/sewer expenses for the building. [42 600] [42 700]

Q48M) Total or summation of Q48C1, Q48C3, Q48D, Q48F, Q48H, Q48J, and Q48K.

ROADS/GROUNDS Q49) Roads/Grounds: Any expense related to exterior

maintenance (exclude parking lot r/m) other than the building structure (or related remote mechanical equipment), such as landscaping, snow removal, site signage, site lighting, and so forth. [43 000] Note: If the parking lot charges a parking fee, do not include any of its maintenance costs here; see Parking Expenses. [46 000]

Q49A) Landscaping: Includes expenses associated with salaried employees such as payroll taxes and benefits, landscaping contract, directly expensed tools/equipment, outdoor sprinklers, and supplies/materials/miscellaneous. [43 100]

Q49B) Garage/Parking (free): Includes expenses associated with salaried employees involved in the operation of "free" building parking, contracts, fees, utilities, cleaning, repairs and maintenance, directly expensed tools/equipment, and supplies/ materials/ miscellaneous. If income is derived from the parking operation then record all expenses under question 56. Exclude all parking lot related repairs and maintenance costs (report under 47J). [43 200]

Q49C) Snow Removal: Includes long-term contracts, directly expensed tools/equipment as well as supplies/materials/miscellaneous. [43 300]

Q49D) Other Roads/Grounds Expense: All other supplies/materials/miscellaneous expenses not capture above as well as expenses associated with exterior lighting and signage. [43 400]

Q49E) Total or summation of Q49A, Q49B, Q49C and Q49D. SECURITY Q50) Security: Expenses related to the security of tenants and

buildings. [44 000] Q50A) Payroll, Taxes, Fringes: Payroll, taxes, and fringe benefits

for directly employed security personnel. [44 100] Q50B) Contract: Total of all security related contracts; include

both guard and monitoring contracts. Contracts/Guard: Expenses of individuals and/or firms contracted to perform specific security tasks. [44 200] Contracts/Monitoring: Includes expenses /contracts for security monitoring programs [44 300]

Q50C) Equipment: Includes all directly expenses security equipment/systems plus maintenance expenses associated with them and ordinary supplies necessary to operate a security program such as uniforms, include Vehicle Lease; including cost of lease/vehicle



Definitions and Instructions and all associated maintenance for specific use by security personnel. Example – Golf cart, security car. [44 400] [44 500]

Q50D) Miscellaneous/Other Security Expenses: All other security expenses not captured above. [44 600]

Q50E) Total or summation of Q50A, Q50B, Q50C, and Q50D. ADMINISTRATIVE Q51) Administrative: Expenses directly connected with

administration of the building. Does not include general maintenance/operation costs. [45 000]

Q51A) Payroll: Payroll, taxes, and fringe benefits for directly employed administrative personnel such as building manager, building secretary, and assistant building manager. (Engineering, maintenance, and other building staff should be allocated to the appropriate functional categories.) If you checked "NO" to question 20A then this line should not be blank. [45 100]

Q51B) Allocated Admin. Fee: Pro rata share of any or all administrative overhead charges/fees assigned to this building. [45 200]

Q51C) Management Fee: For a building managed under a management contract. If you checked "YES" under question 20A then this line item should not be blank. [45 300]

Q51D) Professional Fees: Pertaining to the operation of the building, such as labor disputes, contractor agreements, and so on. Also includes accounting, data processing, and auditing costs to the extent necessary to satisfy tenant lease requirements and permanent lender requirements. Does not include legal costs pertaining to leasing nor should it include costs of owner's income tax work, partnership reporting requirements, or other non-operating accounting work. [45 400]

Q51E) General Office Expense: General expense of running and maintaining the building manager's office: supplies, furniture, telephones, temporary office help, postage, and so on plus such things as dues /subscriptions, classified ads for hiring/contract solicitation and E/O insurance. Includes "office rent" for the building manager's office calculated at fair market value. [45 500]

Q51F) Employee Expenses: Includes travel and entertainment, educational programming, and car allowances. [45 600]

Q51G) Miscellaneous/Other Administrative Expense: All other Administrative expenses not capture above. Examples include - Concierge Service, Merchant Association Dues. [45 700]

Q51H) Total or summation of Q51A, Q51B, Q51C, Q51D, Q51E, Q51F, and Q51G.

TOTAL OPERATING EXPENSES Q52) Total or summation of Cleaning (Q46H),

Repairs/Maintenance (Q47L), Utilities (Q48L), Roads/Grounds (Q49E), Security (Q50E) and Administrative (Q51H) expenses.

FIXED EXPENSES Q53) Fixed Expenses: Includes real estate taxes, personal

property tax, other taxes, building insurance, and any related licenses, fees, and permits. Exclude any fixed expenses that are not operational-related such as ground rent, which is treated as a financial expense. Include the gross tax amount or what the taxes would have been if money was owed. Do not net out any refunds or reimbursements. [47 000]

Q53A) Real Estate Taxes: Total land and building real estate taxes. [47 100]

Q53B) Personal Property Tax: Total Personal Property Taxes. [47 200]

Q53C) Other Taxes: Includes any kind of annual or periodic or excise tax. Payroll taxes should be included with the appropriate Payroll categories; do not include ground rent. [47 300]

Q53D) Building Insurance: All types of building insurance, including fire, boiler and other. Does not include errors and omissions (General Office Expense), insurance related to employee benefits or, in the case of corporate facilities, liability insurance that would normally be paid by tenants. [47 400]

Q53E) Licenses/Fees/Permits: All license, fees, and permit expenses associated with the above taxes and insurance. [47 500]

Q53F) Total or summation of Q53A, Q53B, Q53C, Q53D, and Q53E.

TOTAL OPERATING PLUS FIXED EXPENSES Q54) Total or summation of Q52 and Q53F. LEASING EXPENSES Q55) Leasing Expenses: Expenditures directly related to the

leasing of space within the building. Depending on the accounting methods and practices, report either directly expensed or the amortized/depreciated value. Leasing expense should not be reported twice. However, if some expenditures are directly expensed and others amortized/depreciated within the same general ledger account, it is okay to report them as such under the appropriate columns. [50 000] [60 000] [61 000] Also, please indicate the square footage covered (leased) by these leasing expenditures. For Q55B, Q55F, Q55G, and Q55H, include all amortized leasing expenses on signed leases incurred during the current year as well as any expenses incurred from previous leases scheduled to be amortized in the current year.



Definitions and Instructions Q55A) Payroll: Payroll, taxes, and fringe benefits for directly

employed leasing personnel. [50 100] Q55B) Fees and Commissions: Directly expensed (typically a

lease of 1 year or less) leasing commissions and other fees paid to the leasing broker. [50 150] Leasing Commissions: Amortized (typically a lease of more than 1 year) leasing commissions and other fees paid to the leasing broker. [60 200]

Q55C) Advertising/Promotions: Costs for advertising and promoting building space. [50 200]

Q55D) Travel and Entertainment: Travel and Entertainment expenses incurred as a result of leasing activity. [50 300]

Q55E) Professional Fees: Legal and other fees incurred for leasing negotiations. [50 400]

Q55F) Tenant Improvements: Improvement expenditures made during the year to retain current tenants or secure new tenants. Include the value of standard items supplied from building inventory and deduct all tenant contributions toward the improvement cost. Report the directly expensed amount [50 600] and/or the amortized amount (only portion to be assessed during current year). [61 400]

Q55G) Buyouts: Expense of buying out existing tenants (directly expensed) [50 500] or Expense of buying out existing tenants (amortized portion only portion to be assessed during the current year). [60 200]

Q55H) Other Leasing Costs: All "other" leasing costs not captured above either directly expensed or amortized. Includes costs of preparing documents and cash advances for moving expenses. [50 600]

Q55I) Total or summation of all directly expensed leasing costs (Q55A-Q55H) and/or the total or summation of all amortized/depreciated leasing expenses (Q55B+Q55F+Q55G+Q55H).

PARKING EXPENSES (FOR FEE FACILITY) Q56) Parking Expenses: Expenses directly connected with

administration and operation of a fee based parking facility(s). If the parking facility is operated directly by the building owner or manager, then expenses associated with cleaning, repairs/maintenance, utilities, and so forth should be recorded here. If the facility is operated on a net basis, then only the building owner's parking-related expenses should be reported. If parking is "free" to all tenants, parking expenses should be reported under Q49B and Q47J. [46 000]

Q56A) In-house: Includes all expenses including payroll, cleaning, repairs/ maintenance, utilities, security, administrative, fixed and supplies/material/ miscellaneous expenses. [46 100] Contract: Management fees associated with the operation of the facility by a separate contractor specializing in parking operations also includes their supplies/materials/miscellaneous expenses. [46 200]

Q56B) Snow Removal: Separately contracted expenses associated with snow removal from parking areas if not provided in the above operations. [46 300]

Q56C) Shuttle: Expenses associated with moving tenants/workers to and from satellite parking facilities; includes all contracts and repairs/maintenance. [46 400]

Q56D) Total or summation of Q56A through Q56D. CAPITAL EXPENDITURES Q57) List dollar value of all capital expenditures (non-leasing

related) incurred during the current year. as well as any expenses incurred from previous capital expenditures that are scheduled to be amortized/ depreciated in this year as well. A capital expense is the cost of major repair, replacement and alterations, etc. which must be depreciated over a given life span/cycle rather than written off as a direct operation cost. [61 000]

Q57A) Common Areas: Show costs of all alternation in common/public areas that qualify as a capital expense.

Q57B) Structural: Show costs of all structural repairs, including exterior walls, roof, foundation, and any interior load bearing walls or columns that qualify as a capital expense.

Q57C) Mechanical: Show costs of replacement and/or renovation of machinery, HVAC equipment, plumbing and electrical systems that qualify as a capital expense.

Q57D) Other: Show cost of all other expenses not captured above excluding any leasing related capitalized expenses (reported under Q55) that qualify as a capital expense.

Q57E) Summation/Total of Q57A through Q57D. TELECOMMUNICATION INCOME/EXPENSES Q58A) Wire/Riser Access: Total Income derived from

telecommunication providers for wire access to the building.

Q58B) Roof-top Access: Total Income derived from telecommunication providers for roof-top access to the building.

Q58C) Total Telecom Income: Total or summation of Q58A and Q58B. Note, this amount should still/also be reported as part of Q38 - "Other Space Rent".

Q58D) Total Telecom Expenses: Total of all expenses incurred by the owner/manager associated with the above telecom income. If any of these expenses are amortized/depreciated, only report the portion of this expense incurred in the current year.

OWNERSHIP Q59) Check the appropriate box that represents the sole or

largest share of ownership of the building.



Definitions and Instructions CAPITALIZATION THRESHOLD Q60) What is the monetary value or threshold for capitalizing

expenditures in the building? If no company/corporate standard exists, please estimate the threshold/value for your building.

Green Survey (Complete if Applicable) This survey is for buildings that are green certified or buildings that are in the process of achieving a green certification. 1) Check the box that applies. If answered “No” skip to

question 4. 2) Check and complete all of the certification information that

applies and answer questions 3 and 5.

3) Check the box that applies.

4) If the building did not achieve a certification, check the box, report the name of standard and select if it was due to cost, policy or other.

5) Check all systems that apply. INSTITUTE of REAL ESTATE MANAGEMENT Write or Call If you have any questions as to the method of filling out the form, please do not hesitate to write or call the Income/Expense Analysis® Department at: Institute of Real Estate Management 430 North Michigan Avenue Chicago, IL 60611 Phone: 312-329-6000 Fax: 312-661-1786 e-mail: [email protected] Start Now It will take much less time than you think. Send in reports on all your buildings. Additional copies of the data form are available on request, at our web site ie.irem.org, or you can reproduce the data form on a copying machine in any quantity necessary to report all your buildings. Encourage others in your city to send in their statistics for a more meaningful sample. You DO NOT need to be a member of IREM® to submit data.

mailto:[email protected]

http://www.irem.org/

430 N. Michigan Ave. Chicago, IL 60611 312-329-6000 e-mail:[email protected]

2016 Income/Expense Analysis®: Office Buildings Submittal Deadline: April 1, 2017 for Free Book & April 2 to 30, 2017 for 50% Discount 2017

Person to receive book and other information: 16. Year Building Opened: 29. Average Retail Occupancy Rate for the Year: 1. Name: 17. Number of Above Ground Stories: % Email: 18. Location: Downtown Suburban 30. Year-end Asking Rate: $ /RSF 2. Company Name: 19. What Major City is it in or nearest: (Gross full service lease) 3. Address: Suite: 31. Tenant Alteration Allowance (Tls): 4. City: 20. Is this building operated by a third party 3-year Lease: $ /RSF 5. State/Prov.: Zip/Zone: management agency? Yes No 5-year Lease: $ /RSF 6. IREM Member: Yes No 21. Building Class: 32. Alteration Support Fees: $ or % Class A Class B Class C 33. RSF on which Alteration Fees Paid: RSF 7. Name of Preparer of this form: 22. Building Type: 34. Retail Area Only: 1. Medical Do you provide Cleaning: Preparer Phone: ( ) - 2. Financial RSF Preparer Email: 3. Government Do you provide Repairs/Maintenance Service: 8. Building Name: 4. Corporate RSF 9. Building Address: Corporate Facility Headquarters? Yes No Do you provide Utilities: 10. City: 5. Industrial RSF 11. State/Prov.: Zip/Zone: 6. General Multi-Tenant 12. Floor Measurement Method: 7. Office Condominium 1. BOMA Rentable (1996) Is management fee included as a CAM reimbursement 2. BOMA Rentable (1989) charge? Yes No 3. GSA 8. Single Purpose (Please Specify): INCOME AND EXPENSES 4. New York (REB 68) 9. Other (Please Specify): Please submit data which covers only actual ’16 calendar or 5. BOMA Usable 23. Total Hours of Operation: fiscal year. Report in whole dollars—NO CENTS. No 6. Other (define): Hours Per Week (168 max) negative figures except where indicated by parenthesis “()”. 7. Unknown 24. Total Number of: 13. Building Square Footage: A) Office Lease Holders Income A. Rentable Office Area RSF B) Retail Tenants 35. Currency: US Canadian B. Rentable Retail Area RSF 25. Average Number of Tenant Employees Throughout the Year: 36. Office Rent C. Rentable Other Area RSF A. Base Rent $ D. Total Rentable Area RSF 26. Size of Owner Office: B. Additional Rent E. Total Gross Area GSF RSF 1. Pass-Throughs $ F. Total Usable Area SF/SM 27. Total Number of Onsite, full time (or equivalent) 2. Operation Cost Escalations $ 14. Total Number of Parking Stalls Stalls building maintenance and engineering staff at C. Base Rent Escalators $ Parking Ratio: Per 1,000 Gross Square Ft. at this site? D. Lease Cancellations $ 15. Number of Buildings Reported: 28. Average Office Occupancy Rate for the Year: % E. Rent Abatements (-) $

Managing Company Are you a CPM®? Yes No Building Name or Code

Address City State Zip

City State Zip Person To Contact E-mail

Property Manager Phone Phone IREM Chapter to Receive Credit For This Form

To submit your data online go to http://ie.irem.org

F. Total Actual Office Income $ C. Electricity E. License/Fees/Permits $ G. Vacancy/Rent Loss $ 1. HVAC: $ F. TOTAL FIXED EXPENSES $ H. Gross Potential Office Income $ 2. KWH 3. Non-HVAC: $ 54. TOTAL OPERATING PLUS FIXED $ 37. Retail Rent (Gross to 100% Occupancy) 4. KWH $ D. Gas: $ 55. Leasing Expenses –RSF Leased: 38. Other Rent (Gross to 100% Occupancy) E. CCFs Direct Amrt/Dep $ F. Fuel Oil: $ A. Payroll $ 39. TOTAL RENTAL INCOME $ G. US Gals B. Commissions/Fees $ $ 40. Gross Parking Income $ H. Steam: $ C. Advertising/Promotion $ 41. Tenant Service Income $ I. 1000 Lbs. D. Travel/Entertainment $ 42. Retail % Income $ J. Chilled Water: $ E. Professional Fees $ 43. Miscellaneous Income $ K. 1000 Ton Hrs. F. Tenant Improvements $ $ 44. TOTAL INCOME $ L. Water/Sewer: $ G. Buy-outs $ $ M. TOTAL UTILITIES $ H. Other Leasing Costs $ $ 45. Do the income figures above include rental charges I. TOTAL LEASING $ $ for owner occupied space? Yes No 49. Roads/Grounds Expense

Expenses (In Gross Actual Figures) A. Landscaping $ 56. Parking Expenses (For a fee) B. General Parking (Free) $ A. In-house $

46. Cleaning Expenses C. Snow Removal $ B. Contract $ A. Payroll, Taxes, Fringes $ D. Misc./Other $ C. Snow Removal $ B. Routine Contract $ E. TOTAL ROADS/GROUNDS $ D. Shuttle $ C. Window Washing $ E. TOTAL PARKING $ D. Other Specialized Contracts $ 50. Security Expenses E. Supplies/Materials $ A. Payroll, Taxes, Fringes $ 57. Capital Expenditures F. Miscellaneous $ B. Contracts $ A. Common Areas $ G. Trash Removal/Recycling $ C. Equipment $ B. Structural $ H. TOTAL CLEANING $ D. Misc./Other $ C. Mechanical $ E. TOTAL SECURITY $ D. Other $ 47. Repair/Maintenance Expenses E. TOTAL CAPITAL EXPENSE A. Payroll, Taxes, Fringes $ 51. Administrative Expenses B. Elevator $ A. Payroll, Taxes, Fringes $ 58. Telecom C. HVAC $ B. Allocate Overhead Fee $ A. Rooftop Income D. Electrical $ C. Management Fees $ B. Wire/Riser Access Income E. Structural/Roofing $ D. Professional Fees $ C. TOTAL TELECOM INCOME F. Plumbing $ E. General Office Expenses $ D. TOTAL TELECOM EXPENSE G. Fire/Life Safety $ F. Employee Expenses $ H. General Building Interior $ G. Misc./Other $ 59. Primary Type of Ownership: I. General Building Exterior $ H. TOTAL ADMINISTRATIVE $ 1. Insurance 2. Bank J. Parking Lot $ 3. Corporate 4. Pension Fund K. Miscellaneous $ 52. TOTAL OPERATING EXPENSES $ 5. Developer 6. REIT L. TOTAL R/M $ 7. Foreign 8. LLC M. Total R/M Contracts $ 53. Fixed Expenses 9. Individual Owner 10. Other (define): A. Real Estate Taxes $ 48. Utility Expenses B. Personal Property Tax $ A. All Electric? Yes No C. Other Tax $ 60. Capitalization Threshold: $ B. Primary HVAC Fuel: D. Building Insurance $

2016 INCOME/EXPENSE ANALYSIS®: GOING GREEN BUILDING SURVEY (This survey is for buildings that are green certified or for buildings that are in the process of achieving a green certification)

1. Is this building a CERTIFIED (labeled or achieved) green building? 3. This green building is: (For example: LEED® certified, earned the ENERGY STAR, etc.) New Construction Yes A retrofit of existing building No (Skip to Question #4) If retrofit, were the green building capital improvements made within the 2. If so, by which of the following? (Check all applicable and answer questions 3 and 5) last five year? Yes-green improvements were made within last 5 years ENERGY STAR® Date Achieved: No-green improvements were made earlier than 5 years ago ENERGY STAR® Rating: WaterSense® 4. Check here if the building was built to a specific green standard but did not achieve certification. Name of standard:

LEED® (Leadership in Energy and Environmental Design)

Program:

Level Achieved: Why was the standard not achieved? Homes Certified Cost Policy Other New Construction Silver Commercial Interiors Gold 5. Check specific green systems used: (Check all applicable) Core & Shell Platinum Energy efficient systems: Schools/Retail/Healthcare HVAC Existing Buildings HVAC-Variable Frequency Drives Neighborhood Development Appliances and Equipment Lighting: Retrofits Lighting: LED Green Globes™ Water Heating 1 Globe Green Roof 2 Globes White Roof 3 Globes Other: 4 Globes Renewable energy use: Photovoltaic Local/Regional/State Program: Geothermal Name of certification program: Solar Thermal Wind NAHB – National Association of Home Builders (for homes only) Fuel Cells Bronze Other: Silver Water management: Gold Grey Water Recycling Platinum Storm Water Captured On-site Water Reduction (Plumbing, aerators, etc.) ASHRAE/USGBC/IESNA 189 Standard Other:

institute of real estate management of the national...

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