New York City boasts the most expensive operating and fixed expenses for office buildings in the U.S., according to BOMA International’s latest Experience Exchange Report.
At an average of $21.44 per square foot, operating and fixed expenses for offices in the Big Apple are more than five times higher than those in the least expensive city – Fresno, CA, which has an average of just $4.25 per square foot.
New York City also topped this year’s ranking of cities with the highest rental income at $48.27 per square foot. Among the least expensive cities for rents, Shreveport, LA, displaces Fresno at the top, averaging $10.47 per square foot.
Operating expenses increased in most markets in the last year, and fixed expenses tended to be volatile due in part to rising utility costs and real estate taxes, according to BOMA. Rental income stayed fairly stable with few significant increases, a favorable outcome for tenants.