Owners See Modest Rise in Net Income

PHOENIX-The average profit local building owners make on their investments rose slightly last year, according to a new survey by the Building Owners and Managers Association.

BOMA’s “2000 Experience Exchange Report” shows the totalaverage income for Phoenix commercial office buildingswas $17.43 psf at the end of 1999. Total expenses averaged $8.68 psf.

Subtracting expenses from income gives commercial building owners in this area an average net operating income of $8.76 psf, up slightly from a year earlier. The average net operating income for the 78 US office markets surveyed was $11.09 psf, the Washington, D.C.-based trade association says.

Phoenix’s numbers are typically lower than the national averagebecause its rents are much lower than those charged in New York, San Francisco, Boston and other much-larger markets. More than 650 million sf of office space in more than 3,000 buildings across the US were surveyed for BOMA’s annual report.