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New Data on Condominium Performance Reported In IREM Benchmarking Study
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Study Also Looks at Co-op and PUD Performance

 

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Editor's Note: Review copies and graphs and charts available to media on request; contact Sharon Peters (312-329-6067), speters@irem.org. For regional and metropolitan breakout information, contact Matt O'Hara (312-329-6025), mohara@irem.org.

General Information
2012 Expense Analysis: Condominiums, Cooperatives and Planned Unit Developments, Institute of Real Estate Management, 328 pages, soft cover, charts/graphs; IREM Member price $207.95 and non-member price $414.95 (plus shipping and tax). In addition to the traditional printed format, the new 2012 Edition is available online at www.irem.org. 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 also can receive it in downloadable Excel and PDF formats for just an additional $99.99.

(CHICAGO, IL, July 30, 2012) Median total annual operating expenses for all condominium building types as a group increased a mere 1.5 percent in 2011 to $2,358.29 per unit from $2,324.14 per unit in 2010. Similarly, condominium dwellers as a group paid 3.3 percent more in assessments last year, with the median monthly assessment amounting to $240.61 per unit, compared with $233.03 in 2010

These are among the key findings reported in the 2012 edition of the Expense Analysis: Condominiums, Cooperatives and Planned Unit Developments, a new benchmarking study published by the Institute of Real Estate Management (IREM). Conducted by IREM since 1978, this annual study analyzes the previous year's operating cost figures from 2,062 properties in the United States and Canada representing 264,084 units. It is designed to help condominium, co-op and planned unit development (PUD) boards and property managers benchmark their association's financial condition, calculate assessments and necessary replacement reserves, and develop and evaluate budgets.

OTHER STUDY HIGHLIGHTS: CONDOMINIUMS

  • Breaking out per-unit operating expenses by condominium type, those for high-rise properties decreased the most, 4.5 percent, declining to $3,899.26. Those for combination properties also fell, just 1.3 percent to $1,980.62. On the upside, expenses for townhouses rose 1.1 percent to 1,833.61, and those for low-rise properties increased a mere 0.9 percent to $2,313.85.
  • Repair and maintenance costs for all condominium types as a group, which historically account for the largest portion of total operating costs, decreased 2.6 percent to $799.05 per unit in 2011 versus the prior year. All other expense categories increased: administrative expenses rose 6.8 percent; operating expenses also rose 6.8 percent; and fixed expenses increased 8.6 percent.
  • Breaking out reserves by building type, townhouse developments added annual reserves of $444.08 per unit, amounting to 24.2 percent of total operating expenses; low-rise properties added reserves of $483.87, equal to 20.9 percent of total operating expenses; high-rise properties added reserves of $859.92 per unit, or 22.1 percent of total operating expenses; and combination units added reserves of $407.09 per unit, or 20.6 percent of total operating expenses.

STUDY HIGHLIGHTS: PUDS

  • Planned Unit Developments, or PUDS, for all types combined (low-rise, townhouse and combination), reported total expenses for 2011 of $561.58 per unit, up 5.0 percent from $534.81 in 2010.
  • An expense breakdown shows that operating expenses increased 8.0 percent, administrative expenses increased 1.2 percent, and repair and maintenance costs, which account for the largest portion of total operating costs, rose 1.6 percent. In contrast, fixed expenses declined 12.2 percent.
  • The typical PUD in 2011 added $95.68 to its reserve fund for future replacements and capital reserves, equal to 17.0 percent of total operating expenses.
  • Median monthly assessments (total operating expenses and replacement reserves) last year for all PUDS combined amounted to $54.77 per unit, increasing 3.2 percent from the year earlier.

MORE STUDY SPECIFICS
The IREM Expense Analysis research study summarizes data by association type (condominiums, cooperatives and planned unit developments) and building type (high-rise, low-rise and townhouse). It provides an analysis of over 30 expense categories, hundreds of operating breakdowns, median monthly assessments and an amenity package analysis. Metropolitan and regional breakouts also are included.

COMPANION PRODUCT TRACKS DATA OVER 10-PLUS YEARS
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.

PRICING
The 328-page Expense Analysis: Condominiums, Cooperatives, and Planned Unit Developments report is available to IREM Members and non-members for $207.95 and $414.95, 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 www.irem.org. 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 $292.95 for IREM Members and $584.95 for non-members. For information on corporate discounts available for multiple users of the product in a given firm, contact Matthew O'Hara at mohara@irem.org, or phone 1-800-837-0706, ext. 6025.

ORDERING INFORMATION
To order any of the Expense Analysis: Condominiums, Cooperatives and Planned Unit Developments' 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 getinfo@irem.org

FOUR OTHER 2012 I/E ANALYSIS STUDIES AND COMPANION LABS AVAILABLE
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; Conventional Apartments; 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 www.irem.org

ABOUT THE INSTITUTE OF REAL ESTATE MANAGEMENT
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 www.irem.org.