Shopping Center Income and Expenses Rise Modestly and Occupancy Levels Decline in 2009, New IREM Study Reports

Insurance and Taxes Claim 44.2 Percent of Total Costs

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(CHICAGO, IL, Oct. 18, 2010) Median income for open shopping centers across the country in 2009, based on average actual occupancy (AAO), increased to $16.61 per square foot from $15.87 the prior year.  Similarly, open center operating costs rose to $5.36 per square foot from $4.84 in 2008. 

These are among the key findings reported in the 2010 edition of the Income/Expense Analysis: Shopping Centers, a new benchmarking study published by the Institute of Real Estate Management (IREM). Conducted by IREM since 1991, this annual study analyzes the previous year’s operating data for 426 open shopping centers throughout the United States. It is designed to provide real estate professionals and investors with current financial data for evaluating the performance of their properties and for preparing appraisals, budgets, loan requests and sales proposals.

Broken out regionally, median income for open centers in 2009 ranged from $14.85 to $21.00 per square foot versus a range of from $14.18 to $22.62 per square foot in 2008.  The Pacific Coast region reported the highest income per square foot.

Regional results also revealed that the Southeast had the lowest median operating cost for open centers last year at $3.82 per square foot, whereas the Midwest had the highest at $6.41 per square foot.

Insurance and taxes accounted nationally for 44.2 percent of the typical open center’s total operating costs in 2009. Contracted services – such as landscaping, security and trash removal – accounted for 14.4 percent of operating costs, whereas maintenance/repair and utilities accounted for 8.8 percent and 7.1 percent of operating costs, respectively. The percentage breakdown for major expenses this past year is quite similar to those for 2008.

Finally, the study reported a national occupancy level for open shopping centers in 2009 of 90 percent, as compared to 93 percent the prior year. Broken out regionally occupancy levels ranged from between 86 and 96 percent.

MORE STUDY SPECIFICS
The IREM Income/Expense Analysis study breaks down open shopping center operating data into several categories, including property size, age, type of anchor, type of lease, average actual occupancy (AAO) and gross leasable area (GLA). The study includes national, regional and metropolitan statistics, along with several special reports including leasing fees, expansion, tenant turnover, type of ownership and gross sales analysis.

PRICE AND ORDERING INFORMATION
The 204-page Income/Expense Analysis: Shopping Centers is available for $434.95 (plus $15.50 shipping and applicable state sales tax).  The IREM Member price is $217.95 (plus shipping and tax). To order, contact IREM’s Customer Service Department at 430 N. Michigan Ave., Chicago, IL 60611-4090 or call toll-free at (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. 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.
 

FOUR OTHER 2010 I/E ANALYSIS BENCHMARKING STUDIES AVAILABLE
IREM also has just published new 2010 editions of its four other annual Income/Expense Analysis studies: Conventional Apartments ($434.95); Office Buildings ($434.95); Condominiums, Cooperatives & Planned Unit Developments ($389.95); and Federally Assisted Apartments ($389.95). IREM Members receive a 50 percent discount on each study; member and non-member purchasers of all five studies receive a 15 percent discount on their total order.

NEW ONLINE LAB TRACKS DATA AND TRENDS OVER 10 YEARS
A new, state -of-the-art companion product to each of IREM’s five property sector reports will debut shortly.  Called the Income/Expense Analysis Online Lab, an interactive Web site from IREM with unlimited access, the product enables users to download over 10 years of historical data, including over 100 customizable line-item variables, and compare it to the operating data in their portfolio. Specific benefits include being able to (1) make at-a-glance data comparisons by property type, year, line item, and/or location; (2) build and tweak budgets throughout the year; (3) confidently relay precise metrics and trending data to owners and investors.

The price of each Income/Expense Analysis Online Lab ranges from $292.95 to $324.95 for IREM Members and $584.95 to $649.95 for non-members, depending upon the applicable property sector. Purchasers of hard-copy or downloadable Income/Expense Analysis reports and Online Labs will receive a 20 percent discount on their total order, and those purchasing all five Online Labs will receive a 15 percent discount.

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.