Based on new data compiled for the BOMA 2011 Experience Exchange Report (EER), the industry leader in benchmarking income and expense data for commercial buildings, New York is still the nation’s costliest place to do business in terms of rent and operating expenses.
NYC tops out the rental market with an average of $48.27 psf followed closely by Washington, DC at $42.63 and San Mateo, Calif. coming in third at $41.61. In descending order, the other top ten cities are: Santa Monica, San Francisco, Boston, San Jose, Los Angeles, West Palm Beach and Chicago.
But when it comes to operating expenses, our hometown costs are almost 25% more expensive than the second-ranked market, as evidenced by the EER’s top ten list:
1. New York, N.Y., $21.44 psf
2. Washington, D.C., $16.86 psf
3. Boston, Mass., $15.16 psf
4. Morristown, N.J., $14.67 psf
5. San Francisco, Calif., $14.43 psf
6. Miami, Fla., $12.87 psf
7. Santa Monica, Calif., $12.84 psf
8. Plainfield, N.J., $12.83 psf
9. Chicago, Ill. and Los Angeles, Calif., $12.49 psf
10. Newark, N.J., $12.46 psf
Interesting to note is the ranking of three New Jersey locations—Morristown, Plainfield and Newark—in the top 10, with two edging out such major cities as Chicago and Los Angeles.
The EER calculates these results based on data supplied by BOMA members nationwide, and defines operating expenses as including utilities, repairs/maintenance, cleaning, administrative, security and grounds.
BOMA/NY
http://www.bomany.org/