November 16, 2015
Buildings with the BOMA 360 designation averaged $4.89 per square foot (psf) more in total rental income than buildings without the designation. This performance gap also has widened significantly, up $2.74 since last year. Buildings with the designation also saw operational efficiencies, as they averaged $4.56 psf more in total rental income when subtracting total operating expenses than buildings without the designation, an increase of $2.79 since last year.The analysis also found that properties boasting both the BOMA 360 designation and the LEED certification performed significantly better than properties with just the LEED certification alone, demonstrating the complementary nature of the two programs. LEED-certified properties that also earned a BOMA 360 designation averaged $1.73 psf more in total rental income than buildings that only achieved LEED certification. This is up $0.55 from last year. Properties with both LEED certification and the BOMA 360 designation also averaged $1.50 psf more in total rental income after subtracting total operating expenses than LEED properties without the 360 designation, an increase of $0.46 from last year. While LEED serves as an important measure of sustainability, the BOMA 360 designation covers a much broader range of criteria, providing a more holistic validation of operational and management best practices.Previous independent analyses by CoStar and Kingsley Associates have confirmed that earning a BOMA 360 designation offers buildings tangible results, measured through higher tenant retention and satisfaction scores, higher rental rates and documented operations and management savings and efficiencies.“Properties that do more, achieve more,” commented George Denise, chair of the BOMA 360 Performance Program Council and director of Operations and Sustainability for Oracle. “Earning the BOMA 360 designation or certifying through LEED will benefit your property. However, as the analysis shows, property professionals who earn both BOMA 360 and LEED together will reap the biggest benefits.”“These new numbers confirm what BOMA 360 designees already know – that achieving the BOMA 360 designation results in a significant return on investment,” added BOMA International Chair Kent C. Gibson, BOMA Fellow, president of Capstone Property Management, L.C. “The BOMA 360 designation continues to be a clear indicator of quality and a valuable way for owners and managers to increase income and reduce costs.”For more information about the BOMA 360 Performance Program, please visit the BOMA 360 webpage.
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