BOMA International Data Identifies Most, Least Expensive Commercial Real Estate Markets

(WASHINGTON, D.C. – August 28, 2014) The Building Owners and Managers Association (BOMA) International, using the results from the 2014 Experience Exchange Report^® (EER^®), has compiled a list of the most and least expensive commercial real estate city-markets in the United States.  The annual report aggregates income and expense data from the previous year; 2013 data was gathered from more than 5,700 buildings across 250 markets representing more than a billion square feet of space in the United States and Canada.Total operating expenses incorporate all expenses incurred to operate office buildings, including utilities, repairs and maintenance, roads and grounds, cleaning, administration and security.  All five of the most expensive markets for operating expenses remained unchanged from the previous year’s rankings, with New York once again topping the list with average total operating expenses of $11.77 per square foot.  At $5.17 per square foot, Raleigh, North Carolina, replaced Salt Lake City in 2013 as the market with the lowest reported operating expenses.  Overall operating expenses saw a slight increase in 2013, as the industry began to recover and previously intensive cost-cutting measures were relaxed.

​Five Most Expensive Markets – Total Rental Income:

​1. New York, New York	$51.67 per square foot (psf)​
2. Washington, D.C.	​$45.24 psf
3. San Mateo, California	​$42.71 psf
4. Santa Monica, California	​$38.64 psf
​5. Boston, Massachusetts	​$35.37 psf

Five Least Expensive Markets – Total Rental Income:

​1. Huntsville, Alabama	$12.89 per square foot (psf)​
2. Tucson, Arizona	​$13.22 psf
3. Columbus, Ohio	​$15.92 psf
4. Saint Louis, Missouri	​$16.42 psf
​5. Phoenix, Arizona	​$16.63 psf