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New Income and Expense Data on Conventional Rental Apartment
Performance Reported in New IREM Benchmarking Study

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Study Also Includes Key Performance Trends Over Four Years


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Editor’s Note: Review copies and graphs and charts available to media on request; contact Sharon Peters (312-329-6067), For major metropolitan area and regional breakout information, contact Matt O’Hara (312-329-6025),

General Information:
2012 Income/Expense Analysis: Conventional Apartments, Institute of Real Estate Management, 248 pages, soft cover, charts/graphs; IREM Member price is $229.95 and non-member price is $459.95 (plus shipping and tax). In addition to the traditional printed format, the new 2012 Edition is available for purchase online at The data is easily downloadable in both Excel and PDF file formats, and is completely customizable in Excel. As a special incentive, purchasers of the report in print format can also receive it in downloadable Excel file and PDF format for just an additional $99.99.

CHICAGO, IL, July 24, 2012 –Gross possible rents for three of the four conventional rental apartments examined (elevator; low-rise with 12 to 24 units; and garden) rose within a range of 0.2 percent to 8.3 percent in 2011 versus 2010, whereas those for low-rise buildings with 25-plus units dipped a mere 1.5 percent. Net Operating Income (NOI) for the three apartment types for which data was available rose between 2.9 and 7.5 percent from the prior year. Similarly, total expenses for three building types experienced year-to-increases – within a range of 0.8 and 8.5 percent – with one type recording no change whatsoever.

These key findings, reported in the 2012 edition of the Income/Expense Analysis: Conventional Apartments, published by the Institute of Real Estate Management (IREM), are drawn from a control sample of conventional apartments that have submitted data for the report consistently over the past four years. The report also contains data drawn from a larger sample of submissions gathered over the past five years, regardless of whether that data was submitted consecutively over the five-year period. In terms of sample size, the report analyzes the previous year’s operating income and cost figures for 3,156 multi-family rental properties representing over 618,000 units across the United States and Canada.

Income/Expense Analysis: Conventional Apartments, is designed to help real estate professionals evaluate multi-family development and investment options and compare their buildings’ performance to industry norms. The publication also is an invaluable resource to build better budgets; identify ways to trim waste, address inefficiencies, and make needed improvements; prepare feasibility studies, appraisals and loan requests; and much more.


  • NOI for low-rise buildings with 25 or more units rose 7.5 percent to $4.74 per square foot; NOI for elevator buildings increased 4.4 percent to $9.02 per square foot; and NOI for garden apartments rose 2.9 percent to $4.96 per square foot.
  • Looking at gross possible rents, low-rise buildings with 12-24 units reported an 8.3 percent increase to $11.98 per square foot; low-rise buildings with 25 or more units reported a 1.5 percent decrease to $10.07 per square foot; elevator buildings reported a 0.2 percent increase to $16.44 per square foot; and garden buildings reported a 0.5 percent gain to $10.46 per square foot.
  • In terms of expenses, three of the four building types analyzed were more costly to operate in 2011. Elevator building expenses rose 8.5 percent to $8.05 per square foot; low-rise buildings with 12-24 units rose 7.7 percent to $5.71 per square foot; and low rise buildings with 25 or more units reported a mere 0.8 percent increase to $4.94 per square foot. In contrast, garden buildings reflected no change whatsoever, remaining at $4.99 per square foot.
  • Looking at utility costs, elevator buildings continue to have the highest, rising 6.3 percent last year to $1.19 per square foot. Garden buildings saw a cost rise of 7.6 percent, increasing to $0.71 per square foot. Low-rise buildings with 25-plus units saw a cost decrease of 1.3 percent, declining to $0.76 per square foot.
  • An analysis of maintenance and repair costs shows that despite a 4.7 percent dip this past year, elevator building costs remain the highest at $0.61 per square foot. Those for low-rise buildings with 25 or more units increased 11.4 percent to $0.39 per square foot; those for garden buildings rose 3.7 percent to $0.28 per square foot.
  • In terms of operating ratios, less than 51 percent of a typical property’s annual collections were used to cover operating expenses. All four building types remained relatively stable with low-rise buildings with 25 or more units experiencing the highest operating ratio at 50.7 percent, despite a 0.2 percent decrease from the prior year. Elevator building were the only building type to report a rise, 3.0 percent, increasing the operating ratio to 48.1 percent.

*Data from buildings that have submitted report data consistently for the past four years.


  • Uncollected income due to vacancy and other forms of rent loss decreased slightly for all four building types. At 6.7 percent, garden buildings have the highest vacancy and rent loss as a percentage of gross possible income followed by low-rise building with 12 to 24 units at 5.8 percent; low-rise buildings with 25 or more units at 5.6 percent; and elevator buildings at 4.8 percent.
  • An analysis of tenant turnover indicates that elevator buildings experienced the lowest turnover ratio at 39.8 percent, up 5.4 percent from the prior year. Low-rise buildings with 25 or more units reported a turnover ratio of 45.9 percent, a year-to-year gain of 5.2 percent. Garden buildings experienced the highest turnover ratio at 51.9 percent, despite a 1.1 percent dip.


The IREM Income/Expense Analysis research study summarizes data by building type, age, Section 42 properties, turnover and more. The income and expense data for each sample is presented in dollars per square foot of rentable area and as a percentage of gross possible income and dollars per unit. Individual metro market reports for more than 150 cities also are included along with an analysis of vacancy rates and operating unit trends plus a variety of historical trend reports.

A new state-of-the-art product called the Income/Expense Analysis Online Lab is available as a companion product for the research study. The Lab is an interactive website with 24/7 access that enables purchasers to download over 10 years of historical office building data – including over 100 customizable line-item variables – and compare it to the operating data in their individual portfolios.

The 248-page Income/Expense Analysis: Conventional Apartments report is available to IREM Members and non-members for $229.95 and $459.95, respectively, plus shipping and applicable state sales tax. Internet users can order the study in soft cover or in a downloadable format by accessing the Publications section (click on Income/Expense Analysis Reports on the drop-down menu) of the IREM web site at As a special incentive, purchasers of the print report also can receive it in downloadable Excel file and PDF format for just $99.99, with the data completely customizable in Excel.

The companion Online Lab is priced at $324.95 for IREM Members and $649.95 for non-members. For information on corporate discounts available for multiple users of the product in a given firm, contact Matthew O’Hara at, or phone 1-800-837-0706, ext. 6025.

To order any of the Income/Expense Analysis: Conventional Apartments’ products, contact the IREM Customer Service Department at 430 N. Michigan Ave., Chicago, IL 60611-4090 or call toll-free to (800) 837-0706, ext. 4650. Credit card orders (VISA, MasterCard, Discover or American Express) can be faxed toll-free to (800) 338-4736 or e-mailed to

IREM also has just published new 2012 editions of four other annual Income/Expense Analysis studies, each of which has a companion Lab. The categories covered: Office Buildings; Shopping Centers; Condominiums, Cooperatives & Planned Unit Developments; and Federally Assisted Apartments. Pricing and other information is available in the Publications section (click on Income/Expense Analysis Reports on the drop-down menu) of the IREM Web site at

The Institute of Real Estate Management (IREM) is an international community of real estate managers across all property types dedicated to ethical business practices and maximizing the value of investment real estate. An affiliate of the National Association of Realtors, IREM has been a trusted source for knowledge, advocacy and networking for the real estate management community for more than 80 years.

IREM is the only professional real estate management association serving both the multi-family and commercial real estate sectors and has 80 U.S. chapters, 14 international chapters, and several other partnerships around the globe. Worldwide membership includes nearly 18,000 individual members and over 535 corporate members.

IREM promotes ethical real estate management practices through its credentialed membership programs, including the Certified Property Manager (CPM) designation, the Accredited Residential Manager (ARM) certification, the Accredited Commercial Manager (ACoM) certification, and the Accredited Management Organization (AMO) accreditation. These esteemed credentials certify competence and professionalism for those engaged in real estate management. IREM also offers CPM Candidate, Associate, Student, and Academic memberships. All members are bound by the strictly enforced IREM Code of Professional Ethics.

Collectively, CPM Members in the United States manage nearly $2 trillion in real estate assets, including 11.4 million residential units and 10.4 billion net square feet of commercial space. To learn more about the IREM and its chapter network, call (800) 837-0706, ext. 4650 (outside the U.S. call (312) 329-6000) or visit