New Data on Condominium Performance Reported In IREM Benchmarking Study
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Study Also Looks at Co-op and PUD Performance
Editor’s Note: Review copies and graphs and charts available to media on request; contact Sharon Peters (312-329-6067), email@example.com. For regional and metropolitan breakout information, contact Matt O’Hara (312-329-6025), firstname.lastname@example.org.
2013 Expense Analysis: Condominiums, Cooperatives and Planned Unit Developments, Institute of Real Estate Management, 320 pages, soft cover, charts/graphs; IREM Member price $212.95 and non-member price $424.95 (plus shipping and tax). In addition to the traditional printed format, the new 2013 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, Aug. 28, 2013) – Median total annual operating expenses for all condominium building types as a group increased 3.0 percent in 2012 to $2,429.58 per unit from $2,359.29 per unit in 2011. Similarly, condominium dwellers as a group paid 3.2 percent more in assessments last year, with the median monthly assessment amounting to $248.34 per unit, compared with $240.61 the prior year. The typical association added $550.46 per unit to its reserve fund, versus $528.07 in 2011, representing 22.7 percent of total operating expenses.
These are among the key findings reported in the 2013 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 2,120 properties in the United States and Canada representing 276,990 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 townhouses increased the most, 12.7 percent, increasing to $2,065.77. Those for high-rise properties also increased, 9.6 percent, to $4,272.23. On the downside, expenses for low-rise properties decreased 4.9 percent to $2,200.06, and those for combination properties dipped a mere 0.6 percent to $1,968.97.
- Repair and maintenance costs for all condominium types as a group, which historically account for the largest portion of total operating costs, increased 9.6 percent to $875.99 per unit in 2012 versus the prior year. Similarly, administrative expenses rose 4.7 percent to $338.32 per unit and operating expenses rose 0.5 percent, to $674.12 per unit. Only fixed expenses saw a year-to-year decline, 6.5 percent, to $329.17.
- Breaking out reserves by building type, townhouse developments added annual reserves of $466.67 per unit, amounting to 22.6 percent of total operating expenses; low-rise properties added reserves of $507.00, equal to 23.0 percent of total operating expenses; high-rise properties added reserves of $833.34 per unit, or 19.5 percent of total operating expenses; and combination units added reserves of $381.25 per unit, or 19.4 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 2012 of $561.45, or $0.13 per unit less than in 2011.
- An expense breakdown shows that operating expenses declined 2.4 percent to $79.33 per unit; administrative expenses rose 7.1 percent to $141.84 per unit; and repair and maintenance costs also rose 7.1 percent to $284.53 per unit. Only fixed expenses recorded a year-to-year decline, a slight 0.1 percent, to $28.89 per unit
- The typical PUD in 2012 added $96.77 to its reserve fund for future replacements and capital reserves, equal to 17.2 percent of total operating expenses.
- Median monthly assessments (total operating expenses and replacement reserves) last year for all PUDS combined amounted to $54.85 per unit, a 0.1 percent increase 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 condo/co-op and HOA data – including over 100 customizable line-item variables – and compare it to the operating data in their individual portfolios.
The 320-page Expense Analysis: Condominiums, Cooperatives, and Planned Unit Developments report is available to IREM Members and non-members for $212.95 and $424.95, 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 email@example.com, or phone 1-800-837-0706, ext. 6025.
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 firstname.lastname@example.org
FOUR OTHER 2013 I/E ANALYSIS STUDIES AND COMPANION LABS AVAILABLE
IREM also has just published new 2013 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 dedicated to ethical business practices, maximizing the value of investment real estate, and promoting superior management through education and information sharing. An affiliate of the National Association of REALTORS, IREM is the home for all industry professionals connected to real estate management – and the only organization serving both the multi-family and commercial sectors.
We believe that good management matters, and that well-managed properties pay dividends in terms of value and in the quality of life for residents, tenants and customers. We believe in professional ethics. We believe in the power of knowledge and the importance of sharing it.
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Since 1933, IREM has set the standard for best practices in real estate management. Today, IREM membership includes nearly 18,000 individuals and 560 corporate members. 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.