What is a BOMA Experience Exchange Report for Commercial Buildings?
I love diving into the nitty-gritty details of commercial real estate data, and the BOMA Experience Exchange Report (EER) stands out as one of the most valuable tools in our industry. Let me share with you what makes this report so special and how you can use it to your advantage.
Experience Exchange Report: A standardized report published yearly by the Building Owners and Managers Association (BOMA) that provides detailed financial data on operating costs and income for commercial office buildings. The report allows property owners and managers to compare their building's performance against similar properties based on factors like building type, size, and location.
Introduction: Understanding the BOMA Experience Exchange Report
The BOMA Experience Exchange Report serves as your compass in the commercial real estate world. Think of it as a report card that shows how buildings perform financially across different markets. Property managers and owners use this information to make smart decisions about their buildings and spot opportunities for improvement.
History and Evolution of the Experience Exchange Report
The report has come a long way since its early days. What started as a simple paper document has grown into a sophisticated digital resource. Building owners now submit more data points than ever before, creating a rich database that reflects the true state of commercial real estate markets across North America.
Key Components of the Experience Exchange Report
The meat and potatoes of the EER include three main areas:
Operating Expenses
Utility costs (electricity, water, gas)
Building maintenance and repairs
Security services and systems
Administrative expenses and staff costs
Income Data
Base rental rates by market
Revenue from parking and other services
Current occupancy statistics
Market Comparisons
Data sorted by location and market
Building classifications (A, B, C)
Size-based comparisons
Practical Applications
You can use the EER to:
Property Management
Create better budgets by comparing your costs to similar buildings. Spot areas where you might be spending too much or too little.
Investment Analysis
Make informed decisions about property acquisitions by understanding typical operating costs and income potential in specific markets.
Leasing Strategy
Set competitive rental rates and structure leases that make sense for your market.
How to Use the Experience Exchange Report
Getting the most from the EER requires careful attention to detail. Start by identifying buildings similar to yours in size, age, and location. Look at trends over time rather than focusing on single data points.
Benefits and Limitations
The EER shines by providing standardized metrics that make comparisons possible. However, keep in mind that the data represents past performance and might not capture recent market changes.
Related Tools and Resources
While the EER is fantastic, don't forget about other BOMA publications and industry reports that can supplement your research and give you an even fuller picture of the market.
Future of Experience Exchange Reports
The EER keeps getting better with new technology. Watch for expanded sustainability metrics and environmental performance data in upcoming editions.
Making the Most of BOMA Reports
Success with the EER comes from regular use and careful analysis. The experts at Bellhaven Real Estate can help you interpret the data and apply it to your specific situation. Reach out to us for professional guidance on using the Experience Exchange Report to improve your property's performance.
Remember, the EER isn't just a report - it's your key to making data-driven decisions that can improve your building's bottom line.