BY KENT GIBSON, BOMA FELLOW
Early in my commercial real estate career,
I learned about a valuable resource from BOMA International that could help me grow income and reduce the operating costs for my office building portfolio, refine operating strategies and determine if the costs of my building service contracts were more or less than the market average. Once I determined the rentable square feet of my properties, I was able to put this benchmarking tool—the Experience Exchange Report® (or EER)—to very good use.
The result: By increasing operational efficiency and making changes to previous operational practices based on the data found in the EER, the operating costs for some of the properties in my portfolio were cut in half. Now known as the Office EER and available as an online database, this resource is just one of the many offerings from BOMA that can make a difference when it comes to controlling costs. Using the Office EER—as well as the brand-new Industrial EER for industrial properties— makes business sense.
The Office EER has more data than any other industry source, providing benchmarking information on energy costs, operating expenses, taxes and more to drive a more profitable bottom line—it is vital industry intelligence that encourages smart asset management. As you’ll see in the feature article titled “Climbing to the Peak” on pages 30-33, the data from the Office EER also helps reveal underlying industry trends. The financial savings you can achieve by using the Experience Exchange Report database is a tangible example of the return on investment that can be gained by your active participation in BOMA. Property professionals have experienced a savings of at least two to three percent in operating costs as a result of increased operating efficiencies by benchmarking through the Office EER. With savings like these, how can you afford not to be involved in BOMA? Starting from the bottom of the building infographic from BOMA International that I first mentioned in my last column (left), let’s consider the impact that using the Office EER makes on a typical 100,000-square-foot office building in Anytown, USA, charging $20 per rentable square foot with $7.50 per square foot in operating expenses and a cap rate of 8. The three percent savings in operating costs from benchmarking the building through the Office EER adds up to a whopping $22,500 each year. Numbers like these tell the story of how BOMA drives value for commercial properties—and this is just one of many examples of the quantifiable difference that BOMA can make for you, your building and your company.