How to Use Income/Expense Analysis Data in Ways You Never Thought Possible?

Income/Expense Analysis ® Reports Reports Residential Office Retail Benchmarking Trends & Historical Data Case Studies by Ingo Kraus and Nick Schwendeman I/E Labs

Income/Expense Analysis Program

Data is King Evaluate properties and investment options Monitor property performance Stay on top of market trends Prepare budgets and loan applications Negotiate beneficial leases

Users Who uses the data? Property Managers Appraisers Assessors Financial Institutions Lenders Real Estate Consultants & Advisors Academia Developers

Five Annual Studies to Aid in Assessing your Property Income/Expense Analysis ® Publications More than 58 years of publishing data Conventional Apartments Federally Assisted Apartments Condominiums, Cooperatives, and Planned Unit Developments Office Buildings Shopping Centers

Conventional Apartments 3,400 multi-family properties Presented in: Dollars per square foot Percentage of gross possible income Dollars per unit Breakdowns by age, size and range Historical trends Section 42 properties

Conventional Apartments Trends: NOI

Conventional Apartments Trends: Rents

Conventional Apartments Trends: Expenses

Federally Assisted Apartments 1,000 apartment buildings Data on federally assisted programs HUD sections 202, 221(d) 3, 236 Section 8 Rural Development section 515 Tenant turnover and operating ratios

FAA Trends: Net Operating Income

FAA Trends: Operating Ratios and Turnover

FAA Trends: Total Expenses

Condos, Coops, & PUDS 2,100 community associations nationwide Grouped by association type and building type Tracks: Utilities Maintenance Insurance Taxes Amenities

CCP Trends: Total Operating Expenses

CCP Trends: Replacement Reserves & Assessments

Office Buildings 2,400 private sector office buildings Downtown and suburban markets Presented in dollars per square foot Breakdowns by building size, height, age and rental range Capital Expenditures Green Buildings Medical Office Buildings

Office Buildings Trends: Subtotals

Office Buildings Trends: Net Operating Costs

Shopping Centers Nearly 500 Open Shopping Centers Income based on types of leases and anchors Data by age of center, size, regional areas and national statistics Tracks non-enclosed common areas Special reports Leasing fees Expansion Tenant turnover Type of ownership Gross sales analysis

Shopping Centers Trends: Income

Shopping Centers Trends: Expenses

Benchmarking To gauge or measure A standard point of reference in measuring or judging quality, value, cost, etc.

Benchmarking As it relates to buildings, we can benchmark: Building performance Income, Expenses, NOI, etc. Tenant turnover Energy usage Historical trends Comparative data

Benchmarking: How? 1.Record building data and operating expense 2.Calculate per square foot costs 3.Select comparative data 4.Calculate dollar and percentage variances 5.Compare data and determine reasons/justifications for variances 6.Set goals, prioritize and implement expense reduction efforts 7.Monitor and document results

Case Study Ingo Kraus, CPM ® Regional Manager, Altman Management Company, AMO ®

Case Study Nick Schwendeman, CPM ® Senior Vice-President, Asset Management The Webb Companies

I/E Labs

I/E Labs--Reports

I/E Labs--Criteria

I/E Labs--Results

Summary Five Income/Expenses Analysis ® are available from IREM Highlighted trend data can be meaningful and provide comparison Benchmark and Compare your data I/E Labs…for trending historical data Visit our website: IREM.ORG

IREM.org Matthew OHara Income/Expense Analysis ® Manager (312) Questions? Comments? We are happy to help you!