FOR IMMEDIATE RELEASE
(WASHINGTON, D.C.—November 16, 2015) The Building Owners and Managers Association (BOMA) International has found that properties with the BOMA 360 Performance Program® designation continue to outperform buildings without the 360 designation—even if those properties already have a LEED certification.
The BOMA 360 Performance Program evaluates commercial properties in six major areas: building operations and management; life safety/security/risk management; training and education; energy; environment/sustainability; and tenant relations/community involvement. Since the program's inception in 2009, more than 1,200 designations have been conferred in more than 70 markets across the United States and around the globe.
Analysis was conducted using the information found in BOMA International’s 2015 Office Experience Exchange Report (Office EER), which aggregates office sector income and expense data from the previous year; 2014 data was gathered from more than 5,300 buildings in 275 markets in the U.S. and Canada representing more than 820 million square feet. Also included in the collected data are any building designations currently held by the properties.
Buildings with the BOMA 360 designation averaged $4.89 per square foot (psf) more in total rental income than buildings without the designation. This performance gap also has widened significantly, up $2.74 since last year. Buildings with the designation also saw operational efficiencies, as they averaged $4.56 psf more in total rental income when subtracting total operating expenses than buildings without the designation, an increase of $2.79 since last year.
The analysis also found that properties boasting both the BOMA 360 designation and the LEED certification performed significantly better than properties with just the LEED certification alone, demonstrating the complementary nature of the two programs. LEED-certified properties that also earned a BOMA 360 designation averaged $1.73 psf more in total rental income than buildings that only achieved LEED certification. This is up $0.55 from last year. Properties with both LEED certification and the BOMA 360 designation also averaged $1.50 psf more in total rental income after subtracting total operating expenses than LEED properties without the 360 designation, an increase of $0.46 from last year. While LEED serves as an important measure of sustainability, the BOMA 360 designation covers a much broader range of criteria, providing a more holistic validation of operational and management best practices.
Previous independent analyses by CoStar and Kingsley Associates have confirmed that earning a BOMA 360 designation offers buildings tangible results, measured through higher tenant retention and satisfaction scores, higher rental rates and documented operations and management savings and efficiencies.
“Properties that do more, achieve more,” commented George Denise, chair of the BOMA 360 Performance Program Council and director of Operations and Sustainability for Oracle. “Earning the BOMA 360 designation or certifying through LEED will benefit your property. However, as the analysis shows, property professionals who earn both BOMA 360 and LEED together will reap the biggest benefits.”
“These new numbers confirm what BOMA 360 designees already know – that achieving the BOMA 360 designation results in a significant return on investment,” added BOMA International Chair Kent C. Gibson, BOMA Fellow, president of Capstone Property Management, L.C. “The BOMA 360 designation continues to be a clear indicator of quality and a valuable way for owners and managers to increase income and reduce costs.”
For more information about the BOMA 360 Performance Program, please visit the BOMA 360 webpage.
About BOMA International
The Building Owners and Managers Association (BOMA) International is a federation of 91 BOMA U.S. associations and 17 international affiliates. Founded in 1907, BOMA represents the owners and managers of all commercial property types including 10.4 billion square feet of U.S. office space that supports 1.8 million jobs and contributes $227.6 billion to the U.S. GDP. Its mission is to advance a vibrant commercial real estate industry through advocacy, influence and knowledge. Learn more at www.boma.org.
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