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 breakout information , contact Matt O'Hara (312-329-6025), mohara@irem.org.

General Information
2005 Income/Expense Analysis®: Conventional Apartments, Institute of Real Estate Management, 238 pages, soft cover, charts/graphs, $364.95 (plus $13.25 shipping and applicable state sales tax); $182.95 IREM Members. In addition to the traditional printed format, the new 2005 Edition is available for purchase online at www.irem.org. The data is easily downloadable in both Excel and PDF file formats, and is completely customizable in Excel.

(CHICAGO, IL, Aug. 30, 2005) Total expenses rose in 2004 from the prior year for all major types of conventional rental apartments, with the exception of low-rise buildings with 12 to 24 units. Net operating income decreased across the conventional rental apartment spectrum while uncollected income due to vacancy and other forms of rent loss were relatively unchanged from 2003.

These are among the key findings reported in the 2005 edition of the Income/Expense Analysis®: Conventional Apartments , a new benchmarking study published by the Institute of Real Estate Management (IREM®). Now in its 50 th year, this annual study by IREM® analyzes the previous year's operating income and cost figures for more than 4,100 multi-family rental properties across the United States and Canada. It is designed to help real estate professionals evaluate multi-family development and investment options, benchmark the performance of properties they own or manage as well as to develop budgets, feasibility studies, appraisals, loan requests, etc.

NOI DOWN FOR ALL MAJOR TYPES
Of the four building types analyzed (garden; low-rise, 12 to 24 units; low-rise, 25-plus units; elevator), all experienced decreases in Net Operating Income (NOI) in 2004 versus 2003. NOI for low-rise buildings with 12 to 24 units declined 8.9 percent to $3.80 per square foot last year from $4.17 in 2003; elevator buildings decreased 6.5 percent to $6.37 per square foot; garden buildings declined 3.7 percent to $4.74 per square foot; and, low-rise buildings with 25-plus units dipped 3.1 percent to $5.00 per square foot.

VACANCY AND RENT LOSS LEVELS ESSENTIALLY UNCHANGED
Uncollected income due to vacancy and other forms of rent loss were essentially unchanged for all building types from 2003 to 2004. Low-rise buildings with 12 to 24 units showed a mere 1.0 percent increase in vacancy and rent loss as a percentage of gross possible income; low-rise buildings with 25-plus units showed a 0.2 percent increase; and garden buildings and elevator buildings showed decreases of just 1.6 percent and 0.7 percent, respectively. The lowest vacancy and rent loss level in the U.S. occurred in Los Angeles, where a median vacancy and rent loss of 6.6 percent or less of gross income was reported for three of the four building types examined. Differing economic conditions and levels of multi-family development experienced by each metropolitan area analyzed showed significant differences in vacancy and rent loss levels.

TOTAL EXPENSES TYPICALLY RISE
Owners of all of the building types analyzed found them more expensive to operate in 2004 than in 2003, with the exception of low-rise buildings with 12 to 24 units. Total expenses for elevator buildings rose 8.4 percent (to $7.32 per square foot), those for low-rise buildings with 25-plus units increased 3.0 percent (to $4.47), and those garden properties rose 1.4 percent (to $4.47). In contrast, total expenses for low-rise buildings with 12 to 24 units declined, but by just 0.9 percent.

UTILITY COSTS INCREASE, IN SOME CASES BY DOUBLE DIGITS
Utility costs incurred by all of the multi-family properties surveyed were higher in 2004 than the prior year. Low-rise buildings with 12 to 24 units experienced the largest increase, 17.7 percent. Elevator buildings continue to have the highest utility costs, increasing 11.1 percent from 2003 to $1.30 per square foot. Garden buildings experienced an increase of 3.4 percent in 2004, whereas low-rise buildings with 25 or more units increased 1.6 percent.

MAINTENANCE/REPAIR COSTS HIGHER
Maintenance and repair costs per square foot for elevator buildings and low-rise buildings with 12 to 24 units increased in 2004 from 2003, with no comparative year-to-year figures available for low-rise buildings with 25-plus units and garden buildings. Elevator buildings spent 6.6 percent more for maintenance and repair in 2004 than the prior year, with costs totaling $0.65 per square foot. Low-rise buildings with 12 to 24 units spent 2.1 percent more than in 2003, with costs totaling $0.49 percent per square foot.

OPERATING RATIOS GENERALLY RISE MODESTLY
For all building types in 2004, less than 56.2 percent of a typical property's annual collections were used to cover operating costs, versus 52.2 percent in 2003. Elevator buildings reported an increase of 4.6 percent in operating expenses in 2004, low-rise buildings with 25-plus units reported a 2.0 percent increase, garden property expenses rose 1.8 percent, and low-rise buildings with 12 to 24 units experienced a 3.6 percent decrease in operating expenses. The best operating ratios for most property types were found in the Pacific Coast region, with expenses consuming only 36.8 percent to 41.6 percent of total actual collections.

RENTS GENERALLY LOWER
Modestly lower gross possible apartment rents were reported for the four building types analyzed, except for low-rise buildings with 12 to 24 units, which experienced a mere 1.1 percent rent rise. According to the study, rents per square foot for garden buildings fell 4.7 percent to $9.87 from $10.36 in 2003; rents for low-rise buildings with 25-plus units declined 2.6 percent to $9.95 from $10.22 per square foot; and rents for elevator buildings dipped 1.7 percent to $13.10 from $13.32 the prior year. Low-rise buildings with 12 to 24 units in the Plains region reported the lowest median rents at $6.35 per square foot, whereas elevator buildings in the Northeast reflected the highest gross possible rents at $19.52 per square foot.

ANNUAL TENANT TURNOVER TOPPED OUT AT 62.1 PERCENT
Retaining tenants in 2004 continued to challenge operators of all multi-family property types, although increases and decreases in year-to-year turnover compared to 2003 ranged from only plus 4.1 percent to minus 3.3 percent. Garden buildings reported the highest turnover of all building types, with 62.1 percent of their tenants classified as new. In descending order, 61.0 percent of tenants in low-rise buildings with 25-plus units were new, 58.4 percent of tenants in low-rise buildings with 12 to 24 units were new, and 47.8 percent of tenants properties in elevator buildings were new.

MORE STUDY SPECIFICS
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.

PRICE AND ORDERING INFORMATION
The 238-page Income/Expense Analysis®: Conventional Apartments is available for $364.95 (plus $13.25 shipping and applicable state sales tax). The IREM member price is $182.95. 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 custserv@irem.org . Internet users can order the study in soft cover or in the new downloadable format by accessing IREM's website at www.irem.org.

FOUR OTHER 2005 I/E ANALYSIS BENCHMARKING STUDIES AVAILABLE
IREM® also has just published new 2005 editions of its four other annual Income/Expense Analysis® studies: Shopping Centers ($364.95); Condominiums, Cooperatives & Planned Unit Developments ($319.95); Office Buildings ($364.95); and Federally Assisted Apartments ($319.95). 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.

ABOUT THE INSTITUTE OF REAL ESTATE MANAGEMENT
The Institute of Real Estate Management (IREM^®) has been the source for education, resources, information and membership for real estate management professionals for more than 70 years. An affiliate of the NATIONAL ASSOCIATION OF REALTORS^®, IREM is the only professional real estate management association serving both the multi-family and commercial real estate sectors.

With 82 U.S. chapters, seven international chapters and several other partnerships around the globe, IREM is an international organization that serves as an advocate on issues affecting the real estate management industry.

Membership includes approximately 16,000 individual members and 530 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, and the Accredited Management Organization (AMO^®) accreditation. These esteemed designations certify competence and professionalism for those engaged in real estate management. In addition, IREM offers Associate membership status.