Virginia Beach is among least expensive commercial real estate markets in U.S.
- August 28, 2012
According to a report from the Building Owners and Managers Association (BOMA) International, Virginia Beach is among the five least expensive commercial real estate markets in the country.
Using results from an annual report that aggregates rental income and operating expenses from 2011, BOMA looked at data gathered from more than 5,400 buildings across 125 distinct markets.
The 2012 Experience Exchange Report found these five cities to be most expensive in terms of total operating expenses (which did not include fixed expenses).
1. New York, N.Y: $12.46 psf (per square foot)
2. San Francisco, Calif.: $10.39
3. Washington, D.C.: $10.18
4. Boston, Mass.: $9.21
5. Los Angeles, Calif.: $8.96
The five least expensive city markets were:
1. Jackson, Miss.: $4.71 psf
2. Fresno, Calif.: $4.78
3. Salt Lake City, Utah: $5.01
4. Virginia Beach, Va.: $5.11
5. Shreveport, La.: $6.17
Total figures incorporated all expenses to operate office buildings, including utilities, repairs and maintenance, roads and grounds, cleaning, administration and security. When adding in fixed expenses such as real estate and property taxes and insurance, the totals increased.
In New York City, for instance, average total operating plus fixed expenses were $21.46 per square foot, while they averaged $4.71 in Jackson, Miss.
Operating expenses increased in most markets last year, but rent-based income and overall income also saw increases, which helped insulate building owners and managers as their profits continue to gradually return.
In terms of total rental income, the most expensive market was New York City at $45.15 per square foot, and the least expensive market was Shreveport, La. at $11.76 per square foot.