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Editor’s Note: A review copy is available to media upon request to Sharon Peters

(Chicago, Nov. 7, 2007) Real estate management firms holding the Accredited Management Organization (AMO®) accreditation manage approximately 2.6 million residential units and more than 1 billion net square feet of commercial space, the total value of which exceeds upwards of $289 billion. Conventionally financed apartments predominate in a majority of residential portfolios, followed by condos/co-ops and HOAs, and then affordable/federally assisted housing. Office buildings predominate in a majority of non-residential or commercial portfolios, followed by shopping centers and other retail properties, and then industrial parks and other industrial facilities.

These are among the just-released findings of the 2007 edition of the Accredited Management Organization Profile Study conducted by the Institute of Real Estate Management (IREM). AMO accreditation recognizes excellence among real estate management firms, with credentialing requirements that include maintaining appropriate insurance coverage to ensure financial stability; passing an independent financial review; having a CPM® Member in an executive position to supervise management operations; and promising to uphold the Minimum Standards and Codes of Ethics of the Accredited Management Organization.

IREM periodically surveys AMO firms – of which there currently are 500 with a total of 621 branches – to gather information on their key characteristics and financial practices, including income and expenses by real estate function, property management income as well as benefit and compensation packages. The study is used by many in the real estate management industry as a guideline on compensation, benefits, and office practice trends.

Among other key findings of the 2007 edition of the study:

• Most of the firms who responded are involved in real estate management activities other than property management; however, property management typically consists of their greatest source of income and their greatest share of expenses.
• About 58 percent of those responding are compensated based on a percentage of gross income, with 16.2 percent paid a flat/basic fee, and 15 percent receiving a percentage of effective gross income.
• More than four-in-10 firms responding said that their firm’s portfolio consisted entirely of third-party owned property, with 53 percent saying that it accounted for 90-or-more percent.
• On average, about 72 percent of all property managed by AMO firms is managed on a fee basis for third-party owners, with the remaining property managed and owned by the firm.
• Approximately 76 percent of respondent firms are organized as corporations. And more than 16.2 percent are organized as limited liability companies, up from 2.2 percent in a similar study conducted in 1996.
• Only five percent of respondent firms are organized as partnerships.
• More than 50 percent of respondent firms operate one or more branch offices in addition to a headquarters office.
• The average AMO firm employs 261 people, including a total of six or more IREM-credentialed CPM and ARM® Members.
• More than 83 percent of respondent firms were established after 1960, with 61 percent achieving AMO status since 1991, and more than 83 percent achieving it since 1981.

STUDY METHODOLOGY
The study findings summarize the results of the “AMO Confidential Inventory Survey” fielded online by the IREM Research Department in January 2007. Findings are based on responses received from 75 Accredited Management Organizations.

PRICE AND ORDERING INFORMATION
The 2007 edition of the Accredited Management Organization Profile Study is priced at $47.95 for IREM members and $59.95 for non-members, plus shipping, handling, and applicable state sales tax. To order, contact the IREM Customer Relations Department at 430 N. Michigan Ave., Chicago, IL 60611-4090; or call toll-free (800) 837-0706, ext. 4650. Credit card orders (VISA, MasterCard, American Express and Discover) 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 a downloadable format by accessing the IREM Bookstore in the Publications section of the IREM website at www.irem.org.

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 75 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 81 U.S. chapters, eight international chapters and several other partnerships around the globe, IREM is an international organization that also serves as an advocate on issues affecting the real estate management industry.

Membership includes more than 18,000 individual members and 500 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 certification, and the Accredited Management Organization^® (AMO^®) accreditation. These esteemed credentials certify competence and professionalism for those engaged in real estate management.  In addition, IREM offers Associate, Student and Academic memberships.

Collectively, IREM CPM Members in the United States manage over $1.5 trillion in real estate assets, including 8.4 million residential units and 8.4 billion net square feet of commercial space. An additional 977,400 residential units are managed by IREM ARM Members. IREM Members are employed by some of the most prestigious real estate firms in the world and nearly 70% hold upper-level management positions. Due to their professionalism and vast experience, property owners and investors worldwide continually seek out the management services of IREM Members.

To learn more about the Institute of Real Estate Management and its chapter network, call (800) 837-0706, Ext. 4650 (outside the U.S. call (312) 329-6000) or visit www.irem.org.