Shopping Center Income and Expenses Rise and Vacancy Levels
Remain the Same in 2004, New IREM® Study Reports

Insurance and Taxes Claim 44 Percent of Total Costs

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
2005 Income/Expense Analysis: Shopping Centers, Institute of Real Estate Management, 210 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 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, Sept. 15, 2005) Median income for open shopping centers across the country in 2004, based on average actual occupancy (AAO), increased to $12.17 per square foot from $11.62 the prior year.  Similarly, open center operating costs last year rose to $3.49 per square foot from $3.28 in 2003. 

These are among the findings reported in the 2005 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 351 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 2004 ranged from $10.98 to $14.90 per square foot versus a range of from $9.83 to $15.54 per square foot in 2003.  In both years, the West Coast reported the highest income per square foot.

Regional results also revealed that the Southeast had the lowest median operating costs for open centers last year at $2.63 per square foot, whereas the West Coast had the highest costs at $4.87 per square foot.

Insurance and taxes accounted nationally for 44 percent of the typical open center’s total operating costs in 2004. Contracted services – such as landscaping, security and trash removal – accounted for 13.5 percent of total operating costs, whereas  maintenance/repair and utilities accounted for 10.6 percent and 7.4 percent of costs, respectively.

Finally, the study reported a national occupancy level for open shopping centers in 2004 of 97 percent, exactly the same as in 2003.

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 210-page Income/Expense Analysis®: Shopping Centers 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: Conventional Apartments ($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 17,500 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.