The document analyzes rental rate trends in major U.S. cities based on the Studley Effective Rent Index (SERI). Key findings include:
1) Effective rents registered their largest single-year decline since SERI began in 1995, falling over 23% as demand plummeted during the recession.
2) Landlord concessions spiked over 26% as landlords offered generous packages to sign leases. Net rents declined over 30% in some markets.
3) The tenant effective rent index, representing occupancy costs, fell to $38.98 in 2009 from $51.14 in 2008 due to lower net rents and higher concessions. The landlord effective rent index dropped over 41% due to
- Brookfield Infrastructure Partners L.P. announced its first quarter 2009 results for Brookfield Infrastructure L.P., which it accounts for using the equity method.
- Adjusted net operating income for Brookfield Infrastructure totaled $8.8 million for Q1 2009, compared to $18.9 million in Q1 2008, with decreases seen in timber and transmission operations.
- Brookfield Infrastructure exercised an option to sell its minority interests in TBE to CEMIG for approximately $275 million in proceeds.
This document provides an overview of Localiza, an integrated business platform in Brazil. It discusses Localiza's competitive advantages including its scale, synergies across business lines, and flexible asset base. The document also reviews Localiza's financial performance, growth drivers in the Brazilian market such as rising incomes and infrastructure investments, and opportunities for further expansion organically and through consolidation. Localiza has demonstrated strong profitability and growth above industry levels due to leveraging competitive advantages within a favorable macroeconomic environment in Brazil.
This document summarizes a presentation about alternatives to joining a proposed Broward Resource Recovery Board Interlocal Agreement for solid waste disposal. Key points include:
- The proposed agreement contains many cost uncertainties and risks that could result in disproportionate costs for contracting communities.
- Tipping fees under the proposed district could range from $12-140 per ton depending on various program costs and pass-through fees from the operator.
- Alternatives worth considering include negotiating directly with the current operator, issuing a new RFP for disposal services, or joining with other cities. The current proposal exposes cities to many undefined long-term risks and liabilities.
- The company held an earnings conference call to discuss its third quarter 2012 results
- Revenue was unchanged from the prior year, while operating revenue increased 2% driven by organic lease revenue growth
- Earnings per share from continuing operations were $1.26 compared to $1.10 in the prior year
- Fleet Management Solutions saw earnings growth of 21% due to lower costs and lease revenue growth
Cathay General Bancorp reported net income of $10.2 million for Q1 2009, down significantly from $27.3 million in Q1 2008. Earnings per share were $0.12 compared to $0.55 the previous year. Non-interest income increased to $27.7 million due to gains on securities sales, but this was offset by a rise in provision for credit losses to $47 million and increased non-interest expenses. Total assets decreased slightly to $11.4 billion while deposits grew 6.3% to $7.3 billion, though loans fell 1.1% to $7.4 billion amid weak economic conditions.
The Task Force reviewed the Town of North Castle's historical financial performance from 2005 to 2010:
- Property taxes increased 36.7% while assessed values only grew 4.5%, raising the tax rate by 28.8%
- Revenues decreased $2.4 million mainly from lower mortgage taxes, licenses, and sales taxes
- Expenses grew with salary and benefits increasing $2.5 million
- The Town used $0.4 million of cash reserves
- Without changes, taxes were projected to rise 44% in 5 years to maintain services and rebuild reserves.
52224246 ubl-annual-accounts-dec-2010-finalAtta Shah
- UBL achieved a 21% increase in profit after tax of Rs 11.2 billion for the year ended December 31, 2010.
- Despite challenges like inflation and interest rate increases, UBL improved its net interest margin to 7.1% and reduced its non-performing loan ratio to 2.3% through prudent lending.
- UBL continued expanding its digital services through projects like Omni branchless banking and the new core banking platform, while launching new accounts tailored for children and businesses.
- Brookfield Infrastructure Partners L.P. announced its first quarter 2009 results for Brookfield Infrastructure L.P., which it accounts for using the equity method.
- Adjusted net operating income for Brookfield Infrastructure totaled $8.8 million for Q1 2009, compared to $18.9 million in Q1 2008, with decreases seen in timber and transmission operations.
- Brookfield Infrastructure exercised an option to sell its minority interests in TBE to CEMIG for approximately $275 million in proceeds.
This document provides an overview of Localiza, an integrated business platform in Brazil. It discusses Localiza's competitive advantages including its scale, synergies across business lines, and flexible asset base. The document also reviews Localiza's financial performance, growth drivers in the Brazilian market such as rising incomes and infrastructure investments, and opportunities for further expansion organically and through consolidation. Localiza has demonstrated strong profitability and growth above industry levels due to leveraging competitive advantages within a favorable macroeconomic environment in Brazil.
This document summarizes a presentation about alternatives to joining a proposed Broward Resource Recovery Board Interlocal Agreement for solid waste disposal. Key points include:
- The proposed agreement contains many cost uncertainties and risks that could result in disproportionate costs for contracting communities.
- Tipping fees under the proposed district could range from $12-140 per ton depending on various program costs and pass-through fees from the operator.
- Alternatives worth considering include negotiating directly with the current operator, issuing a new RFP for disposal services, or joining with other cities. The current proposal exposes cities to many undefined long-term risks and liabilities.
- The company held an earnings conference call to discuss its third quarter 2012 results
- Revenue was unchanged from the prior year, while operating revenue increased 2% driven by organic lease revenue growth
- Earnings per share from continuing operations were $1.26 compared to $1.10 in the prior year
- Fleet Management Solutions saw earnings growth of 21% due to lower costs and lease revenue growth
Cathay General Bancorp reported net income of $10.2 million for Q1 2009, down significantly from $27.3 million in Q1 2008. Earnings per share were $0.12 compared to $0.55 the previous year. Non-interest income increased to $27.7 million due to gains on securities sales, but this was offset by a rise in provision for credit losses to $47 million and increased non-interest expenses. Total assets decreased slightly to $11.4 billion while deposits grew 6.3% to $7.3 billion, though loans fell 1.1% to $7.4 billion amid weak economic conditions.
The Task Force reviewed the Town of North Castle's historical financial performance from 2005 to 2010:
- Property taxes increased 36.7% while assessed values only grew 4.5%, raising the tax rate by 28.8%
- Revenues decreased $2.4 million mainly from lower mortgage taxes, licenses, and sales taxes
- Expenses grew with salary and benefits increasing $2.5 million
- The Town used $0.4 million of cash reserves
- Without changes, taxes were projected to rise 44% in 5 years to maintain services and rebuild reserves.
52224246 ubl-annual-accounts-dec-2010-finalAtta Shah
- UBL achieved a 21% increase in profit after tax of Rs 11.2 billion for the year ended December 31, 2010.
- Despite challenges like inflation and interest rate increases, UBL improved its net interest margin to 7.1% and reduced its non-performing loan ratio to 2.3% through prudent lending.
- UBL continued expanding its digital services through projects like Omni branchless banking and the new core banking platform, while launching new accounts tailored for children and businesses.
Allstate had a very successful year in 2004 despite incurring $2 billion in losses from hurricanes.
- Net income grew to $3.2 billion and operating income increased 16.1% to $3.1 billion. Revenues reached a record $33.9 billion.
- Return on equity was 15% and net income per share increased 18.5% while book value per share rose 9.2%. Allstate executed its strategy of becoming more efficient, driving top-line growth, and expanding into new markets.
Operating revenues increased 15.6% to $13.55 billion in 2005 compared to 2004. Earnings from continuing operations increased 4.1% to $1.59 billion while basic and diluted earnings per share both increased 3.4% to $2.14 and $2.13 respectively. Total assets grew 7.9% to $39.88 billion. Total kilowatt-hour sales increased 2.3% to 196.88 million.
CBS Corporation reported financial results for the first quarter of 2006 with increases in key financial metrics. Revenues increased 4% to $3.6 billion led by growth in the Television and Outdoor segments. Operating income rose 1% to $511 million and earnings per share increased 7% to $0.30. Free cash flow was up 12% to $585 million. The company is on track to meet guidance for low single-digit revenue growth and mid single-digit increases in operating income and earnings per share.
- Teledyne Technologies reported lower first quarter 2009 sales and net income compared to the first quarter of 2008, due to contracting commercial markets amid the global recession. However, earnings were consistent with the company's January outlook due to cost adjustments.
- Sales for the Electronics and Communications and Engineered Systems segments increased compared to the first quarter of 2008, while sales decreased significantly for the Aerospace Engines and Components and Energy and Power Systems segments.
- The company expects second quarter 2009 earnings per share of $0.64 to $0.68 and full year 2009 earnings per share of $2.70 to $2.80, reflecting continued cost adjustments and sales reductions in certain segments.
Houston Effective Rent Index Report - 2017Bryant Lach
Total rent in Houston fell for the second straight year in 2016, declining 4.4% to $43.68 per square foot. Weak leasing and a spike in sublet space forced landlords to cut rents across the city, with the sharpest drops seen in West Houston and the Energy Corridor. Concessions increased by 20.1% as landlords offered more tenant improvement allowances and free rent to attract tenants. Tenant effective rent declined 20.3% while landlord effective rent dropped 36.3% and now sits just above 2011 levels. Rents are expected to decrease further in 2017 as oil and gas prices remain low, limiting growth in the energy industry.
news corp 2nd Qtr - FY07 - December 31, 2006 - US Dollars finance9
News Corporation reported a 24% increase in operating income for the second quarter ended December 31, 2006 compared to the same period the previous year. Income from continuing operations grew 18% year-over-year. Filmed entertainment delivered a 57% increase in operating income due to strong box office performances. Cable network programming operating income increased by $13 million driven by higher affiliate revenues at Fox News Channel. Newspapers operating income grew by $101 million compared to the prior year which included a large redundancy provision.
- Black & Decker reported net earnings of $4.9 million for Q1 2009, down from $67.4 million in Q1 2008, due to restructuring charges and a 28% decline in sales to $1.1 billion as a result of deteriorating economic conditions globally.
- Sales declined across all business segments, with the Fastening and Assembly Systems segment seeing a 34% drop. Operating margins decreased across segments due to volume declines.
- For 2009, the company expects a 20% sales decline and EPS between $1.50-$1.90, excluding restructuring charges, due to cost reductions despite weaker demand and currency impacts.
The document is Sempra Energy's 1999 annual report. It summarizes the company's strong financial performance in 1999, exceeding earnings growth targets. However, total shareholder return did not increase. As a result, Sempra Energy is undertaking a strategic realignment to become a leading global energy services company focused on meeting changing customer needs. Key steps include investments in growing domestic and international businesses and a reduced dividend to increase financial flexibility for growth.
2009 Tax Presentation to Edmonton City CounciliNews880
City of Edmonton - Property Assessment and Taxation 2009 Tax Rate Bylaw Slideshow.
Rod Risling gave this presentation to council Tuesday April 28th, 2009.
The document summarizes the Illinois state budget and pension crisis. It provides details on revenue sources, spending priorities, and tax rates. It shows that the FY2013 all funds budget was $8.2 billion, with 51% from general revenue funds. The general revenue funds budget was $33.7 billion, with the top sources being personal income tax at 46% and sales tax at 19.7%. Pension spending accounted for 19.8% of the general revenue funds budget. It also compares Illinois tax rates to other Midwest states.
The document summarizes the history and administration of the Los Angeles County Liability Trust Fund (LTF), which insures cities that contract with the county for services like law enforcement. It describes how the LTF transitioned from commercial insurance to self-insurance over time. It also outlines the current governance structure of the LTF Oversight Committee, financial issues like investments and rates, and risk management efforts between the county and participating cities. Going forward, it aims to modernize agreements, lower rates based on adequate funding levels, and ensure the LTF continues to effectively insure contracted cities.
U.S. Bancorp reported record net income of $4.2 billion for full year 2004, up 11.6% from 2003. Q4 2004 net income was $1.056 billion, up 8.1% from Q4 2003. Key drivers included lower credit costs and growth in fee income. Notable items impacting results included a $98.5 million allowance release and $112.3 million charge from debt prepayment. Total net revenue grew 3.9% in Q4 driven by payment processing fees. Noninterest expense rose 17.6% primarily from the debt prepayment charge and European expansion. The provision for credit losses fell 77.3% from a year ago on lower losses and improving
allstate Quarterly Investor Information 2005 3rd Earnings Press Release finance7
- Allstate reported a net loss of $1.55 billion for Q3 2005 due to $3.06 billion in after-tax catastrophe losses from hurricanes Katrina, Rita, Dennis, and Ophelia. Excluding catastrophes, underlying performance remained strong.
- Consolidated revenues increased $500 million to $8.94 billion for Q3 2005. Property-Liability premiums grew 2.9% but the combined ratio was 149.6% due to catastrophes. Allstate Financial operating income rose 3.3% to $156 million.
- Allstate updated 2005 annual operating income guidance to $2.35-2.50 per share due to Q3 catastrophe losses
This document provides an overview of Xcel Energy's operations and financial projections. It discusses Xcel's regulated utility subsidiaries, rate base and returns, reconciliation of regulatory and GAAP financial reporting, assumptions for 2006 earnings guidance, and projected capital expenditures and potential earnings from major projects. Key details include projected 2006 O&M and interest expense increases, earnings assumptions, coal supply contracts through 2008, and senior debt credit ratings of BBB- to A3.
The document provides Ryder System's forecast for the fourth quarter of 2012 and full year 2013. Some key points:
- Fourth quarter 2012 earnings per share were $1.07 compared to $0.92 in 2011, with comparable EPS of $1.17 vs. $0.97 in 2011.
- Full year 2012 revenue increased 3% to $6.26 billion, earnings per share increased 18% to $3.91, and comparable EPS increased 16% to $4.04.
- The 2013 forecast excludes non-operating pension costs from comparable earnings measures going forward.
- The presentation includes details on segment results, capital expenditures, cash flow, and debt levels.
2012 NCSP.Cultural Influences of Dance in Physical EducationUp Danzprof
Dance as 'embodied identity' provides 'movement artifacts' that showcase the qualities of our being Filipinos. The Western social dance forms that came to our shores were adapted to suit our temperament, psychological inclinations, our beliefs and customs. Erasing them would mean completely removing the traces of our uniqueness as Filipinos. Handing them down to the current generation allows them to learn about Filipino culture. Presented at the First National Conference on Sports Pedagogy, October 2012, University of the Philippines, Diliman, Quezon City.
Allstate had a very successful year in 2004 despite incurring $2 billion in losses from hurricanes.
- Net income grew to $3.2 billion and operating income increased 16.1% to $3.1 billion. Revenues reached a record $33.9 billion.
- Return on equity was 15% and net income per share increased 18.5% while book value per share rose 9.2%. Allstate executed its strategy of becoming more efficient, driving top-line growth, and expanding into new markets.
Operating revenues increased 15.6% to $13.55 billion in 2005 compared to 2004. Earnings from continuing operations increased 4.1% to $1.59 billion while basic and diluted earnings per share both increased 3.4% to $2.14 and $2.13 respectively. Total assets grew 7.9% to $39.88 billion. Total kilowatt-hour sales increased 2.3% to 196.88 million.
CBS Corporation reported financial results for the first quarter of 2006 with increases in key financial metrics. Revenues increased 4% to $3.6 billion led by growth in the Television and Outdoor segments. Operating income rose 1% to $511 million and earnings per share increased 7% to $0.30. Free cash flow was up 12% to $585 million. The company is on track to meet guidance for low single-digit revenue growth and mid single-digit increases in operating income and earnings per share.
- Teledyne Technologies reported lower first quarter 2009 sales and net income compared to the first quarter of 2008, due to contracting commercial markets amid the global recession. However, earnings were consistent with the company's January outlook due to cost adjustments.
- Sales for the Electronics and Communications and Engineered Systems segments increased compared to the first quarter of 2008, while sales decreased significantly for the Aerospace Engines and Components and Energy and Power Systems segments.
- The company expects second quarter 2009 earnings per share of $0.64 to $0.68 and full year 2009 earnings per share of $2.70 to $2.80, reflecting continued cost adjustments and sales reductions in certain segments.
Houston Effective Rent Index Report - 2017Bryant Lach
Total rent in Houston fell for the second straight year in 2016, declining 4.4% to $43.68 per square foot. Weak leasing and a spike in sublet space forced landlords to cut rents across the city, with the sharpest drops seen in West Houston and the Energy Corridor. Concessions increased by 20.1% as landlords offered more tenant improvement allowances and free rent to attract tenants. Tenant effective rent declined 20.3% while landlord effective rent dropped 36.3% and now sits just above 2011 levels. Rents are expected to decrease further in 2017 as oil and gas prices remain low, limiting growth in the energy industry.
news corp 2nd Qtr - FY07 - December 31, 2006 - US Dollars finance9
News Corporation reported a 24% increase in operating income for the second quarter ended December 31, 2006 compared to the same period the previous year. Income from continuing operations grew 18% year-over-year. Filmed entertainment delivered a 57% increase in operating income due to strong box office performances. Cable network programming operating income increased by $13 million driven by higher affiliate revenues at Fox News Channel. Newspapers operating income grew by $101 million compared to the prior year which included a large redundancy provision.
- Black & Decker reported net earnings of $4.9 million for Q1 2009, down from $67.4 million in Q1 2008, due to restructuring charges and a 28% decline in sales to $1.1 billion as a result of deteriorating economic conditions globally.
- Sales declined across all business segments, with the Fastening and Assembly Systems segment seeing a 34% drop. Operating margins decreased across segments due to volume declines.
- For 2009, the company expects a 20% sales decline and EPS between $1.50-$1.90, excluding restructuring charges, due to cost reductions despite weaker demand and currency impacts.
The document is Sempra Energy's 1999 annual report. It summarizes the company's strong financial performance in 1999, exceeding earnings growth targets. However, total shareholder return did not increase. As a result, Sempra Energy is undertaking a strategic realignment to become a leading global energy services company focused on meeting changing customer needs. Key steps include investments in growing domestic and international businesses and a reduced dividend to increase financial flexibility for growth.
2009 Tax Presentation to Edmonton City CounciliNews880
City of Edmonton - Property Assessment and Taxation 2009 Tax Rate Bylaw Slideshow.
Rod Risling gave this presentation to council Tuesday April 28th, 2009.
The document summarizes the Illinois state budget and pension crisis. It provides details on revenue sources, spending priorities, and tax rates. It shows that the FY2013 all funds budget was $8.2 billion, with 51% from general revenue funds. The general revenue funds budget was $33.7 billion, with the top sources being personal income tax at 46% and sales tax at 19.7%. Pension spending accounted for 19.8% of the general revenue funds budget. It also compares Illinois tax rates to other Midwest states.
The document summarizes the history and administration of the Los Angeles County Liability Trust Fund (LTF), which insures cities that contract with the county for services like law enforcement. It describes how the LTF transitioned from commercial insurance to self-insurance over time. It also outlines the current governance structure of the LTF Oversight Committee, financial issues like investments and rates, and risk management efforts between the county and participating cities. Going forward, it aims to modernize agreements, lower rates based on adequate funding levels, and ensure the LTF continues to effectively insure contracted cities.
U.S. Bancorp reported record net income of $4.2 billion for full year 2004, up 11.6% from 2003. Q4 2004 net income was $1.056 billion, up 8.1% from Q4 2003. Key drivers included lower credit costs and growth in fee income. Notable items impacting results included a $98.5 million allowance release and $112.3 million charge from debt prepayment. Total net revenue grew 3.9% in Q4 driven by payment processing fees. Noninterest expense rose 17.6% primarily from the debt prepayment charge and European expansion. The provision for credit losses fell 77.3% from a year ago on lower losses and improving
allstate Quarterly Investor Information 2005 3rd Earnings Press Release finance7
- Allstate reported a net loss of $1.55 billion for Q3 2005 due to $3.06 billion in after-tax catastrophe losses from hurricanes Katrina, Rita, Dennis, and Ophelia. Excluding catastrophes, underlying performance remained strong.
- Consolidated revenues increased $500 million to $8.94 billion for Q3 2005. Property-Liability premiums grew 2.9% but the combined ratio was 149.6% due to catastrophes. Allstate Financial operating income rose 3.3% to $156 million.
- Allstate updated 2005 annual operating income guidance to $2.35-2.50 per share due to Q3 catastrophe losses
This document provides an overview of Xcel Energy's operations and financial projections. It discusses Xcel's regulated utility subsidiaries, rate base and returns, reconciliation of regulatory and GAAP financial reporting, assumptions for 2006 earnings guidance, and projected capital expenditures and potential earnings from major projects. Key details include projected 2006 O&M and interest expense increases, earnings assumptions, coal supply contracts through 2008, and senior debt credit ratings of BBB- to A3.
The document provides Ryder System's forecast for the fourth quarter of 2012 and full year 2013. Some key points:
- Fourth quarter 2012 earnings per share were $1.07 compared to $0.92 in 2011, with comparable EPS of $1.17 vs. $0.97 in 2011.
- Full year 2012 revenue increased 3% to $6.26 billion, earnings per share increased 18% to $3.91, and comparable EPS increased 16% to $4.04.
- The 2013 forecast excludes non-operating pension costs from comparable earnings measures going forward.
- The presentation includes details on segment results, capital expenditures, cash flow, and debt levels.
2012 NCSP.Cultural Influences of Dance in Physical EducationUp Danzprof
Dance as 'embodied identity' provides 'movement artifacts' that showcase the qualities of our being Filipinos. The Western social dance forms that came to our shores were adapted to suit our temperament, psychological inclinations, our beliefs and customs. Erasing them would mean completely removing the traces of our uniqueness as Filipinos. Handing them down to the current generation allows them to learn about Filipino culture. Presented at the First National Conference on Sports Pedagogy, October 2012, University of the Philippines, Diliman, Quezon City.
This document provides an overview of a company's integrated business platform for car rentals and sales. It discusses the company's competitive advantages including its large fleet size, widespread locations, and ability to leverage synergies across business units. Financial details are presented showing strong profitability and returns from both the car rental and sales divisions. The company has demonstrated consistent growth and profitability over time through a focus on managing assets and pricing strategy, as well as a stable and experienced management team.
The net lease market report for Q2 2011 found that asking capitalization rates rose across most property sectors as lower quality assets were added to the market. However, cap rates for properties with investment grade tenants and long-term leases continued to compress due to high demand and limited supply. Cap rates for core assets like McDonald's properties compressed despite overall retail rates rising. A lack of new development is causing supply constraints for quality single-tenant properties through 2012, keeping cap rates low for these assets. The national single-tenant net lease market remains active but concentrated in core assets, and cap rate spreads between these and other properties are widening.
This document discusses an integrated business platform and its car rental operations. It provides financial details for the company's car rental and fleet rental divisions over 1-year and 2-year cycles. The company manages a large fleet of cars and has a stable management team with succession planning. It has achieved strong revenue and profitability growth over time through its pricing strategy and focus on assets and profitability from its rental divisions.
This document discusses an integrated business platform company that operates in the car rental and used car sales industries in Brazil. It provides an overview of the company's operations, competitive advantages, and financial performance. Some key points:
- The company has over 4,000 employees and operates across Brazil and South America with over 250 locations.
- It benefits from synergies across its rental and used car sales divisions, with flexible and liquid assets that allow it to manage costs and profitability.
- Financial results show strong and consistent growth over time, with higher profitability than competitors and returns above the company's cost of debt.
- The company has consistently gained market share through organic expansion of locations across Brazil.
v3_Apresentação Localiza N D R E Conferências EngLocaliza
Localiza's integrated business platform proved effective during the economic crisis, giving it flexibility and superior performance. The document outlines Localiza's business model, which includes car rental and used car sales divisions in Brazil and other South American countries. It also discusses Localiza's financial cycle for car rentals and fleet rentals, showing revenues, expenses, profits, and returns on assets. Finally, it identifies growth opportunities for Localiza through industry consolidation, air travel growth, fleet outsourcing, credit cards, and higher elasticity of its revenues to GDP growth compared to sector peers.
v2_ApresentaçãO Localiza Ndr E ConferêNcias EngLocaliza
Localiza Rent a Car S.A. reported its financial results for the fourth quarter and full year of 2009. Despite challenging economic conditions, Localiza's integrated business model proved effective in maintaining performance. For the full year 2009, net revenue was relatively flat while EBITDA declined 6.8% and net income fell 11.1 million reais. However, in the fourth quarter revenues increased 30.4%, EBITDA rose 2.5%, and net income turned positive to 38.4 million reais compared to a loss in the prior year period. Localiza's car rental division saw increases in both revenues and daily rentals in the fourth quarter, signaling a resumption of growth.
The document discusses the company as an integrated business platform in the car rental industry in Brazil, highlighting its growth opportunities from investments in sectors driving demand, rising incomes increasing affordability, and an outsourcing trend providing opportunities in fleet rental. The company has leveraged these drivers through organic expansion of its network and pursuit of market share gains in a still consolidating industry.
The document discusses the drivers and growth opportunities for Localiza's car and fleet rental business. Strong investments in infrastructure, rising incomes, and increasing consumption are fueling demand for rental vehicles. Localiza is well positioned to capitalize on these trends through organic expansion of its network and pursuit of consolidation opportunities in the fragmented off-airport market.
This document provides an overview of an integrated business platform company. It discusses the company's car rental and fleet rental divisions, used car sales business, competitive advantages, and financial performance. The company has experienced strong growth in revenues and profitability in recent years due to organic expansion, industry consolidation opportunities, and positive macroeconomic drivers in Brazil such as rising incomes, infrastructure investments, and increased consumer spending. The company is well positioned for continued growth through further network expansion and increasing penetration in the underserved used car and fleet rental markets.
The document summarizes the office market in Metro Detroit and Washtenaw County for Q4 2011. It reports that vacancy rates remained stable at 19.5% in the Metro Detroit area. Net absorption was positive 297,451 square feet for Q4 2011, while rental rates slightly decreased to $18.15 per square foot. The market is believed to be close to bottoming out with stable vacancy levels throughout 2011 and absorption of existing space continuing as new construction remains low.
ApresentaçãO Localiza Ndr E ConferêNcias EngLocaliza
Localiza Rent a Car S.A. reported its financial results for the fourth quarter and full year of 2009. Net revenue was up 30.4% in 4Q09 compared to 4Q08. EBITDA increased 2.5% and net income swung to a profit of R$38.4 million in 4Q09 from a loss in 4Q08. For the full year 2009, net revenue was flat but EBITDA declined 6.8% and net income fell R$11.1 million compared to 2008. Localiza's integrated business platform and flexible model helped it navigate the economic crisis period.
1. During the quarter ending March 31, 2010, the company received a tax credit refund of R$16.1 million and the first installment of a R$15.9 million loan to finance a new machine in the United States.
2. Net debt was reduced to R$170.5 million, a 32.7% decrease from the same period the previous year, due to cash generation and liability management. However, costs of goods sold increased due to an 18.5% rise in the price of polypropylene, the company's main raw material.
3. While sales volume increased 20.3% and EBITDA fell 27.8% compared to the first quarter of 2009,
Localiza Rent a Car S.A. provides an integrated business platform across Brazil and South America with over 63,500 vehicles, 28,654 clients, and 3,641 employees. The company has opportunities for growth through infrastructure investments, economic expansion increasing the middle class and consumption, and consolidation of the fragmented rental car market. Localiza maintains competitive advantages through its experience, brand recognition, financing capabilities, nationwide network of locations, and efficient used car sales model.
Localiza Rent a Car S.A. provides an integrated business platform across Brazil and South America with over 63,500 vehicles, 28,654 clients, and 3,641 employees. The company has opportunities for growth through infrastructure investments, economic expansion increasing the middle class and consumption, and consolidation of the fragmented rental car market. Localiza maintains competitive advantages through its experience, brand recognition, financing capabilities, nationwide network of locations, and efficient used car sales model.
This document summarizes the business of Localiza, an integrated vehicle rental company in Brazil. It outlines Localiza's competitive advantages including its large scale, network of locations, and synergies across business units. The document also reviews Localiza's financial performance, showing consistent growth and profitability above industry levels. It identifies opportunities for further expansion through organic growth and industry consolidation. Brazil's improving macroeconomic conditions and trends of increasing consumption and investment are expected to drive continued growth in the vehicle rental market.
This document provides an overview of a company's integrated business platform for car rentals and sales. It summarizes the company's operations, competitive advantages, financial performance, and growth track record. Key details include the company operating over 200 rental locations in Brazil and South America, with over 4,000 employees. The financial section shows the one-year and two-year rental cycles and margins achieved from rental and used car sales. The company aims to profit from managing its fleet of rental cars as assets. Finally, the summary highlights the company's stable management team and consistent revenue growth averaging 15.9% annually over the past decade.
southern 2000 Editorial Section, black typefinance17
Southern Company achieved record financial results in 2000, with earnings from operations of $1.40 billion, up 7.1% from 1999. A key event was the successful IPO and planned spinoff of Southern Energy, now called Mirant Corporation. Southern Company Chairman Allen Franklin reviews the year's accomplishments and outlines the company's strategic focus on its regulated utility business in the Southeast region and growing its competitive generation and energy services businesses. Southern Company is well positioned for continued growth and shareholder value creation in the fast-growing Southeast U.S. energy market that it knows best.
southern 2000 Editorial Section, color typefinance17
Southern Company achieved record financial results in 2000, with earnings from operations of $1.40 billion, up 7.1% from 1999. A key event was the successful IPO and planned spinoff of Southern Energy, now called Mirant Corporation. Southern Company Chairman Allen Franklin reviews the year's accomplishments and outlines the company's strategic focus on its regulated utility business in the Southeast and growing its competitive generation business in the "Super Southeast" region, with a goal of doubling earnings from this segment within five years through capacity additions.
The annual report summarizes Sempra Energy's financial performance in 2001. Key points include:
- Sempra Energy achieved record earnings of $518 million in 2001, up 20.7% from 2000, and a total return to shareholders of 9.9%, outperforming major market indices.
- The company exceeded its goal of deriving one-third of earnings from its Global Enterprises group, achieving this two years early. A new goal is set to reach half of earnings from this group by 2004.
- Sempra Energy's businesses demonstrated strong performance in difficult market conditions, with the utilities continuing reliable service and new businesses like trading expanding significantly.
This document provides an overview of a company's integrated business platform, financial performance, growth track record, management structure, and strategy. Key points include:
1) The company operates in the car rental and sales industry with over 4,000 employees across hundreds of locations in Brazil and South America.
2) Financially, the car rental division generates higher margins than the used car sales division on an annual cycle, while fleet rental generates higher margins than used car sales on a two-year cycle.
3) Over the past decade the company has achieved strong and consistent revenue and profitability growth through expanding its operations, pricing strategy, and managing its assets efficiently.
Similar to National Studley Effect Rent Index (20)
3. Methodology
Since 1995, the Studley Effective Rent Index (SERI) has been providing the real estate industry’s only
comprehensive, in-depth study of effective rental rate trends and the real cost of occupancy for tenants in the
nation’s major Central Business Districts (CBDs) and selected suburban markets. The SERI report provides
“real world” numbers that reflect lease terms, including negotiated rents and concessions, as well as operating
expenses, real estate taxes and electricity costs.
Each year, Studley analysts examine larger long-term direct deals signed in the highest-quality Class A
properties. Total (gross) rent is separated into its key components: net (or base) rent, operating expenses, real
estate taxes and electricity costs. The Tenant Effective Rent Index (the cost of occupancy to the tenant) is
derived from total rent less the value of concessions provided by the landlord. Finally, the Landlord Effective Rent
Index (the landlord’s bottom line) is calculated from total rent less costs incurred by the landlord, which include
expenses, concessions and commissions.
All statistics in this year’s SERI report are based on larger long-term leases completed during 2009 in existing or
newly constructed Class A buildings.
4. SERI2010
TABLE OF CONTENTS
Summary of Key Findings 1
National Benchmarks 2
Landlord Concessions 4
Tenant Effective Rent 6
Landlord Effective Rent 10
Total Rent Components 14
CBD Rent Trends 24
Suburban Rent Trends 32
Statistical Summary 36
Glossary 37
Supplementary Information 38
5. Summary of Key Findings
Plunge in Net Rents Resets Market Floor
Effective rents registered their largest single-year correction since the SERI index began, as demand for office space in most markets plummeted to its lowest
level in more than a decade. The value of concessions spiked by more than 25% and the decline in net (base) rents reset the starting point for rents in nearly
every market. Net rents plunged by more than 30% in the markets that had the most room for adjustment, such as Manhattan and West Los Angeles. Atlanta,
Chicago, and Tampa Bay posted more moderate declines of less than 10%, but the operating margins were already razor-thin in these markets. Only a few
markets – Denver, Houston, Philadelphia, and Washington, DC – can be accurately described as holding their ground on rents due to less severe conditions.
Although the effective rents of 2009 represent just one year’s worth of transactions, the decline was so extensive that the new starting point for net rents
– the floor for prime Class A space – has fallen to its levels of 2003 or in some cases of the mid-1990s. The upside was a much lower cost to lease space
– businesses that were able to sign new leases or restructure their current leases were able to lock in generational savings on real estate.
KEY CBD FINDINGS
2009 2008 Markets Markets
2009 2008 Change Change Decreasing Increasing COMMENTS
TOTAL RENT COMPONENTS
The net rent index fell for the second straight year,
Net (Base) Rent Index ‐ (Page 17) $29.51 $40.34 ‐26.9% ‐6.4% 15 1 posting its steepest annual decrease on record.
Operating expenses registered a very moderate increase
(Operating Expenses) ‐ (Page 18) $9.86 $9.72 1.5% 3.2% 2 14 compared to prior years.
Real estate taxes rose at a faster pace than operating
(Real Estate Taxes) ‐ (Page 19) $9.67 $9.32 3.8% 3.4% 2 14 expenses and tenant electric.
The increase in tenant electric was about half that
(Electricity ) ‐ (Page 20) $2.69 $2.63 2.4% 4.3% 2 14 recorded in 2008.
Total rent posted a record decline, exceeding the 11.1%
Total Rent Index ‐ (Page 21) $51.73 $62.24 ‐16.7% ‐2.9% 14 2 drop in 2002.
Concession packages spiked by more than 25.0%,
(Concessions) ‐ (Page 4) $91.10 $71.94 26.6% 19.4% 0 16 exceeding last year's jump of nearly 20.0%.
BENCHMARK EFFECTIVE RENT INDEXES
A record jump in concessions combined with
Tenant Effective Rent Index ‐ (Page 6) $38.98 $51.14 ‐23.8% ‐7.0% 0 16 plummeting net rents spurred a decline of nearly 25.0%.
Landlords' bottom line plunged by more than 40.0% in
Landlord Effective Rent Index ‐ (Page 10) $17.11 $29.21 ‐41.4% ‐13.1% 0 16 2009 as they extended generous packages and lowered
net rents.
STUDLEY EFFECTIVE RENT INDEX 2010 1
6. National Benchmarks
Pivotal Fall in Effective Rents Tenant Landlord
National Benchmarks Comparison Effective Effective
Tenant occupancy costs (the National
Tenant Effective Rent Index) registered the
largest year-on-year decline since the SERI
$60
index started in 1995. Tenant effective rent
decreased by 23.8% during 2009, falling from
$50
$51.14 to $38.98. Tenant effective rent was
about 2.5% below its mark in 2005 ($40.00).
$40
The National Landlord Effective Rent Index
dropped by a record 41.4%, plummeting from
$30
$29.21 in 2008 to $17.11 in 2009.
A sharp drop in net rent, combined with $20
generous concession packages, caused the
decline.
$10
$0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Tenant Effective Rent $37.63 $45.44 $43.68 $36.73 $35.15 $36.35 $40.00 $46.14 $55.02 $51.14 $38.98
Landlord Effective Rent $21.61 $28.74 $27.33 $19.65 $17.64 $18.06 $20.79 $26.39 $33.63 $29.21 $17.11
2 STUDLEY EFFECTIVE RENT INDEX 2010
7. SERI2010
Total Rent Dives Operating Real Estate
Total Rent Components Net Rent
Expenses Taxes
Electricity
Total (or gross) rent fell by 16.7% in 2009,
declining from $62.24 to $51.73. Total rent
consists of four components: net (or base)
rent, operating expenses, real estate taxes $70
and electricity.
$60
The sharp drop in net rent was the critical
factor in 2009. Net rent declined for the $50
second straight year, falling by 26.9% to
$29.51. By comparison, net rent decreased $40
by 6.4% in 2008 to $40.34.
$30
Expenses associated with building operations
$20
continued to increase. Real estate taxes
rose by 3.8% to $9.67, slightly more than last
$10
year’s growth of 3.3%. Electricity posted a
more moderate gain than in recent years,
$0
inching up by 2.4% to $2.69. Operating 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Net Rent $29.54 $36.66 $33.18 $26.94 $25.58 $26.01 $28.43 $33.97 $43.11 $40.34 $29.51
expenses recorded the most modest rise, of
Operating Expenses $6.78 $7.01 $7.26 $7.54 $7.84 $8.13 $8.22 $8.59 $9.42 $9.72 $9.86
1.5% from $9.72 to $9.86. Real Estate Taxes $5.62 $5.71 $5.82 $6.42 $6.74 $7.23 $7.84 $8.09 $9.02 $9.32 $9.67
Electricity $1.73 $1.84 $1.87 $1.91 $1.94 $2.00 $2.20 $2.33 $2.52 $2.63 $2.69
Total Rent $43.67 $51.22 $48.14 $42.81 $42.09 $43.37 $46.68 $53.01 $64.07 $62.24 $51.73
STUDLEY EFFECTIVE RENT INDEX 2010 3
8. Landlord Concessions
Fire Sale Concessions
Tenant Concessions: Market Comparison 2008 2009
The value of concession packages has
increased in every year since 2006, with
double-digit spikes in each of the last
two years. In prior years, the increase
was caused in part by the growth in
$140
rental rates that in turn inflated the value
of the packages. In 2009, the value of
concession packages spiked by a record
$120
26.6% from $71.94 to $91.10, in spite
of steep declines in net rent. Landlords
went to great lengths in most markets to $100
get leases completed. In some markets,
though, the depletion of reserves and
the inability to secure funding kept tenant $80
improvement dollars in check, forcing
many landlords to offer expanded free rent
periods instead. $60
The value of concession packages
reached record levels in 2009 in all but $40
four markets as landlords scrambled to
jumpstart waning demand. Every market
except Philadelphia (up by only 7.1%) $20
posted a double-digit increase in the value
of concession packages. Values pushed
above $100 in four markets: Chicago $0
SAN
(+16.7% to $105.00); Atlanta (+18.2% to WDC MTNY ATL CHI DTNY MIA TAM DEN HOU NJ
FRAN
DT LA DAL WLA SDO PHI
$105.00); Midtown Manhattan (+22.3% to 2008 $70.00 $94.00 $88.86 $90.00 $78.00 $42.50 $55.88 $53.75 $37.50 $50.00 $45.00 $50.00 $44.00 $45.00 $29.00 $42.00
$115.00) and Washington, DC (+87.1% 2009 $131.00 $115.00 $105.00 $105.00 $92.84 $65.85 $64.12 $62.04 $58.56 $57.50 $57.04 $55.00 $51.34 $50.00 $47.00 $45.00
to $131.00). The increase in concession
packages in Washington, in contrast
to that in the other markets, was not
4 STUDLEY EFFECTIVE RENT INDEX 2010
9. SERI2010
accompanied by a significant decrease in Lowest
net rents. Landlords in the nation’s capital National Highest
Value of Amortized Concessions Average (Chicago)
(San
chose to lure tenants with record-setting Francisco)
concessions including generous build-
outs, but held their ground on base rents.
Amortized concessions as a percentage of
gross rent provide a more precise gauge
of the dramatic spike in the true value of
packages. The 16.7% decline in gross
rents combined with the 26.6% increase
40%
in concessions pushed the ratio of
concession packages to initial year’s rent 35%
from 17.1% in 2008 to 24.3% in 2009, well
above the peak ratio of 20.1% in 2003. 30%
Washington, DC (+11.5 pp) and Miami
25%
(+13.0 pp) registered the largest year-
on-year increases in concessions as a 20%
percentage of initial year rent. In contrast,
this percentage rose more moderately in 15%
Downtown Los Angeles (+1.3 pp) and San 10%
Francisco (+2.2 pp).
5%
Tenants were also able to negotiate other
substantial incentives not quantified in the 0%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
value of concession packages. These National 13.8% 11.3% 14.2% 18.7% 20.1% 19.5% 17.9% 15.7% 13.9% 17.1% 24.3%
ranged from cancellation options and San Francisco (Low) 6.2% 3.4% 8.0% 21.0% 21.0% 20.4% 18.2% 16.8% 11.2% 13.9% 16.0%
offset rights to flexibility on moving and Chicago (High) 15.7% 20.0% 26.1% 31.1% 31.6% 33.5% 36.9% 34.5% 28.1% 34.1% 38.0%
cabling allowance. Other companies
gained building signage. The most notable
Amortized value of concession package/initial year's gross rent
instance was Willis Group’s lease that
resulted in the renaming of Chicago’s
iconic Sears Tower.
STUDLEY EFFECTIVE RENT INDEX 2010 5
10. Tenant Effective Rent
Occupancy Costs Dive National
Tenant Effective Rent Market Comparison Median
2008 2009
Tenant effective rent, the cost of
occupancy for firms, declined by
23.8% in 2009, falling to $38.98. $90
$85
$80
In markets such as Manhattan,
$75
the steep drop was due to $70
generous concession packages $65
and a record cut in net rents. In $60
$55
2008, the $100 mark was the $50
starting point for negotiations $45
in Midtown Manhattan, but this $40
$35
dropped to the $60.00-$70.00
$30
range by midyear 2009. Even $25
with these fluctuations, few $20
$15
markets changed positions from
$10
a year ago – Midtown Manhattan $5
remained the most costly for $0
SAN
MTNY WDC WLA DTNY HOU DTLA MIA SDO NJ CHI PHI DAL DEN TAM ATL
FRAN
tenants, and Atlanta was once
2008 $82.95 $54.64 $49.79 $45.21 $45.77 $34.93 $29.33 $37.71 $37.71 $25.60 $25.68 $23.12 $28.59 $19.74 $18.73 $17.94
again the least expensive. 2009 $49.62 $47.92 $46.06 $33.46 $32.00 $29.04 $27.85 $26.01 $24.54 $23.95 $23.66 $22.69 $22.30 $19.50 $17.65 $16.04
6 STUDLEY EFFECTIVE RENT INDEX 2010
11. SERI2010
Index Falls By Nearly 25%
Tenant Effective Rent Trends: Year-on-Year Change
The 23.8% decline in tenant
effective rent during 2009
exceeded the 15.9% drop in
2002, which had been the largest
year-on-year decrease. Tenant 10-Year Average: +0.4%
effective rent has now fallen by 25%
29.2% from its peak of $55.02 in 20%
2007. During the last recession,
15%
tenant effective rent fell by a total
Cumulative decline:
of 22.7%, from $45.44 in 2000 to 10% -22.7%
$35.15 in 2003. 5%
0%
Tenant occupancy costs will
decline further in 2010, but the -5%
decreases will probably be in the -10%
5% to 10% range rather than the
-15% Cumulative
extreme drops seen during 2009. decline: -29.2%
An additional 10.0% decrease -20%
would push tenant occupancy -25%
costs just below their mark in
-30%
2003. 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Annual Change 5.8% 20.8% -3.9% -15.9% -4.3% 3.4% 10.0% 15.3% 19.2% -7.0% -23.8%
STUDLEY EFFECTIVE RENT INDEX 2010 7
12. Tenant Effective Rent by Market
Tenant Occupancy Costs Decline Across the Board
Tenant occupancy costs declined in every market, with decreases of at least 10% in nine of the 16 markets. Tenant
effective rent fell by more than 25% in five markets, with the steepest drops occurring in Miami (-31.0%), San
Diego (-34.9%) and both Manhattan submarkets (-40.2% in Midtown and -30.1% Downtown).
In ten of the markets, tenant effective rents fell at a much more moderate rate of less than 20.0%. In four of
these markets – Denver (-1.2%), Philadelphia (-1.8%), Washington, DC (-12.3%) and Houston (-16.9%) – the
relative stability can be attributed to healthier demand or more limited supply of quality product. Denver’s and
Philadelphia’s CBDs, for example, both have a smaller supply of premiere product, and compared to other
markets, the recession did not hit either of these markets as hard in terms of layoffs. Sublet supply consequently
increased but not to the extent seen in Los Angeles, Chicago or Manhattan.
On the other hand, in markets such as Tampa Bay (-5.8%), New Jersey (-6.5%), Chicago (-7.9%) and
Atlanta (-10.9%), tenant effective rent was already well below the national average headed into 2009. These
markets had already experienced rent deflation during 2007 and 2008, and landlords had little margin left to
squeeze out lower net rents or increase concessions. In Atlanta, for example, tenant effective rent was just below
$18.00 in 2008 – the lowest it had been on a non-inflation adjusted basis since the mid-1990s. This rate fell to
$16.04 in 2009.
8 STUDLEY EFFECTIVE RENT INDEX 2010
13. SERI2010
Tenant Effective Rent: Year-on-Year Change by Market
Denver -1.2%
Philadelphia -1.8%
Downtown LA -5.1%
Tampa Bay -5.8%
New Jersey -6.5%
San Francisco -7.5%
Chicago -7.9%
Atlanta -10.6%
Washington, DC -12.3%
Houston -16.9%
Dallas -22.0%
West LA -26.0%
Manhattan (DT) -30.1%
Miami -31.0%
San Diego -34.9%
Manhattan (MT) -40.2%
-45% -40% -35% -30% -25% -20% -15% -10% -5% 0%
STUDLEY EFFECTIVE RENT INDEX 2010 9
14. Landlord Effective Rent
Decline Exceeds 40% National
Landlord Effective Rent Market Comparison Median
2008 2009
Landlord effective rents fell by
13.1% in 2008. This was just the
cusp of the collapse; the landlord $60
effective rent index dove by
41.4% to $17.11 in 2009. $50
For the first time since 2003,
Midtown Manhattan was
$40
pushed off the top of the scale,
supplanted by San Francisco and
Washington, DC. The median $30
landlord effective rent (San
Diego) fell from $23.88 to $11.76
$20
in 2009, and the highest landlord
effective rent (San Francisco,
$28.60) fell below $30.00 for the $10
first time since 2004. Chicago
and Atlanta were in the bottom
$0
SAN
two positions for the second FRAN
WDC MTNY HOU WLA DTLA MIA SDO NJ DAL DTNY DEN PHI TAM CHI ATL
2008 $32.12 $27.85 $52.44 $23.19 $29.12 $15.03 $22.72 $23.88 $11.68 $16.30 $23.83 $9.73 $8.28 $7.39 $6.31 $5.62
straight year. 2009 $28.60 $21.09 $19.57 $17.70 $17.49 $13.40 $12.25 $11.76 $10.16 $10.10 $9.99 $9.15 $7.68 $6.61 $4.09 $3.65
10 STUDLEY EFFECTIVE RENT INDEX 2010
15. SERI2010
Concentrated Collapse
Landlord Effective Rent Trends: Year-on-Year Change
It took three years in the last
downturn for landlord effective
rents to fall by 38.6% from peak
to trough. Landlord effective 10-Year Average: -2.3%
40%
rents have fallen by nearly 50.0%
from their peak rate of $33.63 in 30%
2007. The bulk of this correction Cumulative decline: -38.6%
20%
occurred over four quarters from
late 2008 to midyear 2009. The 10%
nosedive of nearly 42.0% in 0%
landlord effective rents during
-10%
2009 pushed the index down
to just above the $16.06 rate -20%
Cumulative
recorded in 1997. Difficulty in -30% decline:
-49.1%
securing capital and the number
-40%
of properties with approaching
financial commitments make the -50% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
contraction in cash flow much Annual Change 10.6% 33.0% -4.9% -28.1% -10.2% 2.3% 15.1% 26.9% 27.4% -13.1% -41.5%
more problematic in this cycle.
STUDLEY EFFECTIVE RENT INDEX 2010 11
16. Landlord Effective Rent by Market
Pervasive Cut in Landlord Effective Rent
As the recession first emerged in 2008, landlords held their ground on rents, initially increasing concession
packages instead. By early 2009, though, with demand at record lows and sublet supply flooding the market
(particularly in the top-tier Class A properties that had pushed rents to record highs in 2007), landlords had to
make sharp adjustments to net rents as well. During 2009, landlord effective rent fell by double digits in every
market except Denver (-6.0%) and Philadelphia (-7.2%). Tenants willing to sign deals in 2009 came to the table
anticipating substantial discounts in rents as well as generous incentives.
Landlord effective rent fell by more than 40% in four markets including Miami (-46.1%), San Diego (-50.8%), and
both Manhattan markets (-58.1% in Downtown and -62.7% in Midtown) Even markets that had headed into 2009
with scant landlord effective rents of less than $10.00 suffered additional haircuts to margins. Atlanta’s landlord
effective rent dropped by 35.1% to $3.65 and Chicago’s landlord effective rent fell by 35.2% to $4.09.
Some landlords agreed to lease terms that worked out to negative cash flow in initial years.The SERI index only
tracks direct transactions, but the flood of sublet space and the highly favorable terms granted by many sub-
lessors set a new standard for how low rents could go, putting significant pressure on all property owners to
follow suit. Many leases signed for quality sublet space included high-end installations and a lengthy remaining
term. Some sub-lessors, many in the financial sector, adopted a lease-at-all-costs approach to unloading
space. Landlords with the capacity to take a cut in their bottom line made aggressive moves, while others were
handcuffed by financial obligations, pro forma rent goals or depleted reserves that prevented them from lowering
rents or extending competitive concession packages. Other property owners signed shorter-term leases, hoping to
fill the space for a while and then sign for more profitable terms once the market recovers in two to three years.
12 STUDLEY EFFECTIVE RENT INDEX 2010
17. SERI2010
Landlord Effective Rent: Year-on-Year Change by Market
Denver -6.0%
Philadelphia -7.2%
Tampa Bay -10.5%
Downtown LA -10.9%
San Francisco -11.0%
New Jersey -13.0%
Houston -23.7%
Washington, DC -24.3%
Atlanta -35.1%
Chicago -35.2%
Dallas -38.0%
West LA -39.9%
Miami -46.1%
San Diego -50.8%
Manhattan (DT) -58.1%
Manhattan (MT) -62.7%
-70% -60% -50% -40% -30% -20% -10% 0%
STUDLEY EFFECTIVE RENT INDEX 2010 13
18. Total Rent Components
Base Rents Plummet
Total (or gross) rent consists of four components: net (or base) rent, operating expenses, real estate taxes and electricity. Of these four
components, net rent as a percentage of total rent plummeted from 64.8% in 2008 to 57.0% in 2009. This was the first time since the
SERI index started in 1995 that net rent’s share fell below 60.0%. With the steep decline in net rent, the proportionate share of other
components of total rent increased. Operating expenses rose from a 15.6% share in 2008 to 19.1% in 2009. Real estate taxes surged
to a new peak, increasing to 18.7%. Electricity as a percentage of total rent hit its highest mark as well, rising to 5.2% and surpassing
the prior peak of 4.9% in 1996.
Net Operating Real Estate
National Rent Components Rent Expenses Taxes
Electricity
Rent Components - 2008 Rent Components - 2009
Elec. Elec.
4.3% 5.2%
Taxes
15.3% Taxes
18.7%
Net (Base) Rent
Op. Ex 57.0%
Net (Base) Rent
15.6%
64.8%
Op. Ex
19.1%
14 STUDLEY EFFECTIVE RENT INDEX 2010
19. SERI2010
Net Rent as a Percentage
Net Rent as a Percentage of Total Rent
of Total Rent
Net (or base) rent is the largest and
most critical component of total rent.
80.0%
At its peak in 2000 just before the
dotcom bust, net rent represented
nearly 72.0% of total (gross) rent. This 70.0%
level decreased to 57.0% in 2009.
60.0%
The cost of operating a property
accounted for more than 40% of the 50.0%
initial year’s gross rent. In short, even
before concessions are factored
40.0%
in, operating margins for properties
contracted sharply during 2009.
30.0%
20.0%
10.0%
0.0%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Net Rent 67.7% 71.6% 68.9% 62.9% 60.8% 60.0% 60.9% 64.1% 67.3% 64.8% 57.0%
STUDLEY EFFECTIVE RENT INDEX 2010 15
20. Total Rent Components
Net Rent Trimmed
Net Rent as Percentage of Total Rent 2008 2009
The nation’s most expensive markets
posted the sharpest declines in net
rent’s share of total rent. Net rent’s
80%
share in Downtown Manhattan was the
lowest in the nation, plummeting from
60.3% a year ago to 47.4% in 2009.
Other markets with net rent shares well 70%
below the national average included
Chicago (49.5%, down from 51.3%)
and Midtown Manhattan (51.8%, down
60%
from 68.6% a year ago). Tampa Bay and
Washington, DC were the exceptions
to the rule posting meager increases of
0.2 pp (to 58.5%) and 0.6 pp (to 59.1%), 50%
respectively.
40%
SAN
HOU ATL DEN WLA WDC NJ TAMP DTLA SDO PHI DAL MIA MTNY CHI DTNY
FRAN
2008 70.8% 68.1% 64.1% 63.0% 69.2% 58.5% 60.0% 58.3% 59.9% 66.2% 55.0% 63.6% 61.4% 68.6% 51.3% 60.3%
2009 69.1% 66.0% 63.1% 62.7% 59.3% 59.1% 58.5% 58.5% 57.8% 56.7% 53.6% 53.0% 52.0% 51.8% 49.5% 47.4%
16 STUDLEY EFFECTIVE RENT INDEX 2010
21. SERI2010
Net Rent Dives to 2005 National
Levels Net Rent Comparison Median
2008 2009
The National Net Rent index declined
by 26.9%, falling from $40.34 in 2008 to $80
$29.51. Net rent ended 2009 just above $75
its 2005 level ($28.43). Net rent fell in $70
all markets except Washington, DC and $65
Denver. The sharpest declines occurred $60
in markets that attained record rents in $55
2007. Net rent in Midtown Manhattan $50
plummeted by 48.9% from $66.47 to $45
$33.95, followed closely by Downtown $40
Manhattan (-38.5% to $21.26), San $35
Diego (-33.1% to $19.23) and Dallas (- $30
26.1% to $16.50). In both Washington, $25
DC and Denver, several new properties,
$20
plus the effort by landlords to extend
$15
generous concessions rather than
$10
lowering rents, contributed to modest
$5
increases in net rent of 2.6% and 2.8%,
$0
SAN
respectively. WDC
FRAN
MTNY HOU WLA DTNY DTLA ATL SDO CHI NJ MIA DEN DAL PHI TAM
2008 $38.00 $39.34 $66.47 $28.65 $35.89 $34.55 $22.00 $19.93 $28.75 $20.00 $19.80 $27.00 $17.99 $22.33 $16.13 $15.75
2009 $39.00 $36.20 $33.95 $25.82 $23.92 $21.26 $20.50 $19.25 $19.23 $18.90 $18.65 $18.60 $18.50 $16.50 $15.50 $15.50
STUDLEY EFFECTIVE RENT INDEX 2010 17
22. Total Rent Components
Moderate Up-tick in National
Operating Expenses Operating Expense Comparison Median
2008 2009
Of the three expense indexes, the
National Operating Expense Index $14
registered the smallest annual increase
in 2009, posting a modest 1.5% rise from
$9.72 to $9.86. $12
Most markets recorded minor up-ticks
$10
in operating expenses. Chicago and
Philadelphia both registered increases of
1.2%, for example, and Downtown Los $8
Angeles’ operating expenses rose by
1.6%.
$6
Miami (down by 11.6%) was the only
market to register a large decline. In $4
contrast, operating expenses rose
significantly in Houston (+6.6%).
$2
Operating expenses should moderate
further in 2010. $0
SAN
MTNY DTNY DTLA WLA WDC MIA NJ CHI PHI DAL SDO DEN ATL HOU TAM
FRAN
2008 $11.76 $10.85 $9.44 $9.15 $8.90 $9.00 $10.00 $8.32 $8.25 $8.10 $7.55 $8.10 $6.57 $6.07 $5.43 $5.50
2009 $11.95 $11.10 $9.42 $9.30 $9.16 $9.00 $8.84 $8.38 $8.35 $8.20 $7.75 $7.00 $6.75 $6.30 $5.79 $5.50
18 STUDLEY EFFECTIVE RENT INDEX 2010
23. SERI2010
Real Estate Taxes Continue National
Ascent Real Estate Tax Comparison Median
2008 2009
Real estate taxes once again posted the
largest annual jump among the expense $18
indexes, rising by 3.8% to $9.67. The
year-on-year increase was slightly higher $16
than in 2008, when taxes jumped by
3.4%. $14
Real estate taxes increased by 3.1% in $12
Dallas and spiked by 19.1% in Miami.
Tampa Bay (-7.7%) and Houston $10
(-14.4%) posted the only notable
declines. $8
Taxes should start to lose some $6
momentum, and in fact decline, in many
markets during 2010 as they are finally $4
impacted by reduced property values.
This period of declining assessments
$2
could be brief, though – commercial
property will be a tempting target as
$0
SAN
many municipalities deal with revenue MTNY WDC CHI DTNY
FRAN
MIA WLA SDO DTLA ATL HOU NJ PHI TAM DAL DEN
shortfalls in the coming years. 2008 $15.23 $15.00 $9.25 $8.66 $6.23 $4.50 $4.95 $3.90 $3.59 $3.59 $4.03 $3.25 $3.10 $3.25 $2.55 $2.38
2009 $16.04 $15.00 $9.35 $9.05 $6.28 $5.36 $5.09 $4.40 $3.65 $3.48 $3.45 $3.14 $3.10 $3.00 $2.63 $2.55
STUDLEY EFFECTIVE RENT INDEX 2010 19
24. Total Rent Components
Electricity Costs Inch Up National
Electricity Cost Comparison Median
2008 2009
Tenant electricity registered a smaller
increase than in prior years, growing
by 2.4% from $2.63 to $2.69. Tenant
$3.50
electricity was flat or rose minimally
in most markets, inching up by 3.3%
in Chicago and 4.4% in Midtown $3.00
Manhattan. Miami, where the rate
jumped by 18.0%, registered the $2.50
largest increase. Dallas and Houston
posted the largest declines (-6.4% $2.00
and -13.1%, respectively).
$1.50
Reduced demand and relatively
stable fuel costs prevailed in 2009
$1.00
and should continue in 2010.
$0.50
$0.00
SAN
MTNY DTNY WDC MIA SDO DAL TAM WLA PHI HOU DTLA NJ DEN CHI ATL
FRAN
2008 $3.40 $3.25 $3.00 $2.79 $2.50 $2.67 $2.67 $2.50 $2.13 $2.00 $2.37 $1.99 $1.63 $1.60 $1.50 $1.50
2009 $3.55 $3.40 $3.00 $2.96 $2.95 $2.75 $2.50 $2.50 $2.19 $2.10 $2.06 $1.99 $1.71 $1.70 $1.55 $1.50
20 STUDLEY EFFECTIVE RENT INDEX 2010
25. SERI2010
Record Decline in Total Rent National
Total Rent Market Comparison Median
2008 2009
Total (gross) rent dropped by 16.7%
in 2009, decreasing from $62.24
during the prior year to $51.73. $110
$105
$100
It fell in every market with the $95
exception of Washington, DC $90
(+1.5%) and Denver (+3.4%). New $85
$80
construction and stronger demand
$75
in both of these markets were key $70
factors in the small increase in total $65
rents. $60
$55
$50
Of note, gross rent in Washington, $45
DC ($66.00) nudged just past the $40
rate of $65.49 in Midtown Manhattan $35
$30
as the $30 gap between Midtown $25
Manhattan and Washington, DC $20
that had prevailed in 2007 and 2008 $15
$10
evaporated in 2009.
$5
$0
SAN
WDC MTNY DTNY WLA CHI HOU MIA DTLA SDO NJ ATL DEN DAL PHI TAM
FRAN
2008 $65.00 $96.86 $57.80 $57.31 $51.87 $39.00 $40.48 $44.00 $36.73 $43.42 $33.00 $31.09 $28.54 $35.10 $29.33 $27.00
2009 $66.00 $65.49 $54.86 $44.81 $40.36 $38.15 $37.12 $35.75 $35.44 $33.38 $31.88 $30.53 $29.50 $29.38 $28.90 $26.50
STUDLEY EFFECTIVE RENT INDEX 2010 21
26. Total Rent Components
Declines in Nearly
Total Rent: Year-on-Year Change by Market
Every Market
In 2008, total rents fell in about
half of the major CBDs and rose Denver 3.4%
slightly in the other half. Total rents Washington, DC 1.5%
posted minor increases in two Philadelphia -1.5%
-1.8%
markets during 2009 and fell in all Atlanta
-1.9%
others. Tampa Bay
Chicago -2.2%
Total rent dropped by more than New Jersey -3.4%
20% in four markets as landords Downtown LA -3.5%
were forced to extend more San Francisco -5.1%
Houston -8.3%
generous concessions while
Dallas -16.3%
lowering net rents. A decline of
Miami -18.8%
nearly 30% in net rent offset minor
Manhattan (DT) -21.8%
increases in operating expenses
West LA -22.2%
and tenant electric as well as
San Diego -23.1%
continued growth in real estate
Manhattan (MT) -32.4%
taxes.
-35% -30% -25% -20% -15% -10% -5% 0% 5%
22 STUDLEY EFFECTIVE RENT INDEX 2010
27. SERI2010
Growth In Taxes Outpaces Operating Real Estate
Expense and Occupancy Cost Trends Electricity
Other Expenses Expenses Taxes
With the exception of real estate taxes,
all expenses registered more moderate 14.0
Taxes 10-Year Average: +5.6%
increases than in the prior year. The 12.0 Elec 10-Year Average:
+4.5%
order of annual increase among the
10.0
expense indexes followed the pattern
established in 2008; real estate taxes 8.0
recorded the steepest rise (up by 3.8% 6.0
in 2009, compared to 3.4% in 2008),
4.0
followed by tenant electricity (up by 2.4%
in 2009, compared to 4.3% in 2008), and 2.0
operating expenses (up by only 1.5% Op. Ex 10-Year Average:
0.0
in 2009, compared to 3.2% in 2008). +3.8%
Over the last ten years, real estate taxes ‐2.0
have increased at a faster rate (5.6%) ‐4.0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
than electricity (4.5%) and operating Operating Expenses (3.8%) 1.0 3.4 3.7 3.8 3.9 3.8 1.1 4.6 9.6 3.2 1.4
Real Estate Taxes (5.6%) ‐2.2 1.7 2.0 10.2 5.0 7.3 8.5 3.2 11.4 3.4 3.8
expenses (3.8%).
Electricity (4.5%) ‐0.8 6.7 1.5 2.3 1.4 3.2 9.7 6.0 8.1 4.3 2.4
STUDLEY EFFECTIVE RENT INDEX 2010 23
28. CBD Rent Trends
Atlanta Total Tenant Landlord
Atlanta Rent Trends Rent Effective Effective
For the first time in five years, total
rent fell.The 1.8% decline to $30.53 $35
can be attributed to decreases in both 31.09 30.53
$30 29.35 29.90
real estate taxes (-3.1%) and net rent 27.74
26.79
26.05
(-3.4%). On a yearly comparison, $25 24.01
25.58
24.94
24.04
22.69
concession package values soared 22.35 22.35 21.88
20.79 21.08
$20 20.31 20.28
19.60
by 18.2% to $105.00. Tenant effective 17.94
rent continued to drop, falling by 10.6% $15
16.04
to $16.04. Landlord effective rent 12.01 11.95 11.57
10.81 11.25
10.29 10.48
plummeted by a staggering 35.1% from $10 9.91
8.23
2009 to $3.65. $5 5.62
3.65
$0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Chicago Total Tenant Landlord
Chicago Rent Trends Rent Effective Effective
Total rent slipped for the second
consecutive year, falling by 2.2% to $45
$45
$38.15. Net rent dropped by 5.5%. In $40
42.11
$40 38.25 37.73 39.00
contrast, real estate taxes (+1.1%), $35
37.50
37.73 37.05 37.38
37.39 38.59
37.05 37.38
35.63 35.15
38.15
35.35
35.63 35.35 36.10
$35 35.15
operating expenses (+1.2%) and $30
32.00 31.47 31.81
29.65
31.81 28.66 27.61
electricity (+3.3%) all recorded gains. $30
$25
29.65 26.50
24.92
30.27
24.53
27.61 23.50 24.05 23.52
The value of concession packages rose $25
$20
22.70
21.38
24.53
22.47
24.05
22.00 25.27 25.68
23.52 23.66
22.78
by 16.7% to $105.00. Tenant effective $15
$20
17.20
16.10
15.07
17.52
14.21 14.21
13.18
rent decreased by 7.9% to $23.66. $10 15.71
11.73
9.36
$15 8.33
Landlord effective rent posted a dramatic $5
6.26 13.26
4.97
6.03 5.28
10.89 10.86 4.29
decline of 35.2% to $4.09. $10
$0
1.33
7.56
(0.27)
0.73
(1.47) 6.84 6.22 6.31
(3.19) 5.85
$5 4.22 4.09
($5)
$0
($10)
1999
1990 2000
1991 1992 2001
1993 2002 1995 2003
1994 1996 2004
1997 2005
1998 1999 2006
2000 20072002 2008
2001 2003 2009
2004
24 STUDLEY EFFECTIVE RENT INDEX 2010
29. SERI2010
Dallas Total Tenant Landlord
Dallas Rent Trends Rent Effective Effective
Total rent plummeted during 2009,
falling by 16.3% to $29.38. Electricity $40
decreased by 6.4% for the year, while $35 35.10
net rent plunged by 26.1%. On the other 31.69
hand, operating expenses increased $30 29.38
28.59
27.00 27.52
26.25 26.50
by 2.6% and real estate taxes rose by $25 24.03
24.78
26.10
23.88
25.67
24.75
26.00
24.19
25.77
22.80
3.1%. The value of concession packages 21.97
20.61
22.30 22.30
$20
continued trending up, rising by 16.7%
16.30
to $51.34. Tenant effective rent recorded $15 14.26 14.81
13.48
14.39
a significant drop of 22.0% to $22.30. $10
11.28
10.11
10.92 11.16 11.21
10.10
Landlord effective rent declined even
$5
more substantially, by 38.0% to $10.10.
$0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Denver Total Tenant Landlord
Denver Rent Trends Rent Effective Effective
Total rent grew from $28.54 to $29.50,
an increase of 3.4%. All components of $40
total rent rose for the year – operating
$35
expenses by 2.7%, net rent by 2.8%,
31.75
electricity by 6.2% and real estate taxes $30 29.35
28.54 28.54
29.50
27.58 27.56
by 7.1%. The value of concession 25.00
$25 23.95 24.08 24.55
packages soared by 15.4% to $62.04. 22.19
22.97 23.16 23.12
21.35
Tenant effective rent fell for the second $20 19.74 19.50
18.25
16.71
straight year, decreasing by 1.2% to $15 14.63
15.89
14.44 14.40 14.69 14.54
$19.50. Landlord effective rent also 11.54
$10 9.73 9.15
declined, by 6.0% to $9.15. 6.51
7.78
8.69
5.87
$5
$0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
STUDLEY EFFECTIVE RENT INDEX 2010 25
30. CBD Rent Trends
Houston Total Tenant Landlord
Houston Rent Trends Rent Effective Effective
Total rent recorded a decline for the
first time since 2005, falling by 8.3% to $45
$37.12. Net rent, real estate taxes and 40.48
$40 39.75
electricity decreased by 9.9%, 14.4% 37.12
$35 35.43 34.93
and 13.1%, respectively. In contrast,
operating expenses increased for the $30 29.04
27.27
third straight year (+6.6%). The value of $25 25.53
23.31
25.42 25.65 25.62
23.72
22.69 23.10 23.19
concession packages, $58.56, surged $20 19.40
20.75 21.00 20.37 20.68
by 56.2%. Tenant effective rent dropped 15.21
16.80 16.31 15.82 15.19
17.70
$15
by 16.9% to $29.04. Landlord effective 13.24
11.67
$10 9.95
rent fell even more markedly, by 23.7% 6.91 6.15 5.52
to $17.70. $5
$0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Downtown Los Angeles Total Tenant Landlord
Downtown Los Angeles Rent Trends Rent Effective Effective
Total rent fell for the first time in more
than a decade, slipping by 3.5% to $45
$35.44. Net rent declined by 6.8%.
$40
Operating expenses increased by 1.6% 36.73
$35 35.47 35.44
and real estate taxes grew by 1.7%. 32.25
34.18
31.15 31.76
Tenant electric was unchanged. The $30
28.41
29.65
28.52
29.33
27.56 27.23 27.85
26.83
value of concession packages continued $25 24.49 24.95 25.30
22.99
to rise, by 10.0% to $55.00. Reversing 20.90
21.75
$20 19.88
an upward trend, tenant effective rent
$15 14.54 14.99 15.03
decreased by 5.1% to $27.85. Landlord 11.79 11.89
13.12 13.45 13.53 13.40
11.33
10.51
effective rent plunged by 10.9% to $10
$13.40, likewise reversing its trend. $5
$0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
26 STUDLEY EFFECTIVE RENT INDEX 2010
31. SERI2010
West Los Angeles Total Tenant Landlord
West Los Angeles Rent Trends Rent Effective Effective
Following five consecutive years of
increase, total rent dropped by 22.2% $60
to $40.36. Net rent registered a sharp
51.87
decline of 33.4%. Real estate taxes $50 48.12
grew by 2.8%, electricity by 2.8% and 42.43 42.20
45.21
$40 40.36
operating expenses by 2.9%. The value 37.78 37.13 36.81
36.00
of concession packages continued to 31.86 31.21
34.20
32.40
31.20 32.17
33.46
$30 30.38
29.12
rise, by 11.1% to $50.00. Reversing 27.99
26.55
25.00 25.07
23.80
an upward trend, tenant effective rent 21.28 20.59
23.09
$20 18.67
decreased by 26.0% to $33.46. Landlord 17.42
14.50
17.49
12.98 13.87
effective rent plunged by 39.9% to $10
$17.49, likewise reversing its trend.
$0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Miami Total Tenant Landlord
Miami Rent Trends Rent Effective Effective
Total rent fell for the second straight
year, dropping to $35.75. The 18.8% $60
decline can be attributed to decreases
in operating expenses (-11.6%) and $50
particularly net rent (-31.1%). On a yearly 45.00 44.00
$40 40.50
comparison, concession package values 39.45
37.71
34.75 35.50 35.32 35.75
soared by 54.9% to $65.85. Tenant 31.25
34.00
31.04 30.76
32.50 33.00 34.00
$30 30.32
effective rent continued to drop, falling by 28.44
26.58 25.60
28.82
25.36 26.01
31.0% to $26.01. Landlord effective rent 22.00 22.72
$20 19.59 19.01 18.78
plummeted by a staggering 46.1% to 17.89
14.72
17.37
14.21
$12.25. $10
12.25
$0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
STUDLEY EFFECTIVE RENT INDEX 2010 27
32. CBD Rent Trends
Manhattan (Downtown) Manhattan (Downtown) Rent Trends Total Tenant Landlord
Rent Effective Effective
Total rent recorded a second year of
decline (-21.8% to 44.81), primarily due $70
to a 38.5% drop in net rent. Operating
61.55
expenses (+2.3%), real estate taxes $60
57.31
(+4.5%) and electricity (+4.6%) all rose $50 50.04
51.95
50.31
during 2009. The value of concession 43.76
45.77 44.81
42.65 42.50
41.34 40.95 40.85
packages rose for the fourth consecutive $40 39.17
40.60
35.77
year, increasing by 19.0% to $92.84. 32.76 32.37 32.00
$30 29.78 28.95 29.85 28.93
Tenant effective rent, $32.00, fell by 25.96
23.83
30.1% year-on-year. Landlord effective $20 18.90
20.70
16.88
rent plummeted, by 58.1% to $9.99. 14.35
11.58 10.59 10.99
$10 9.99
$0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Manhattan (Midtown) Total Tenant Landlord
Manhattan (Midtown) Rent Trends Rent Effective Effective
Total rent recorded a second year of
decline (-32.4% to 65.49). This decrease $120
is attributable to a 48.9% drop in net
104.55
rent. Operating expenses (+1.6%), $100 96.86
94.34
electricity (+4.4%) and real estate taxes 90.05
82.95
(+5.3%) all rose for the year. The value $80
74.00 74.54 75.42
80.06
of concession packages posted a fourth 66.61 65.66 64.00 63.10
66.27 65.06 64.06 65.49
$60 60.26
year of growth, increasing by 22.3% to 51.38
53.72 55.17
52.44
51.26 51.26 49.62
$115.00. Tenant effective rent, $49.62, 45.88 44.38
$40 37.33
fell by 40.2% year-on-year. Landlord 31.76 30.86 28.78
26.44
effective rent decreased even more $20 19.57
dramatically, by 62.7% to $19.57.
$0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
28 STUDLEY EFFECTIVE RENT INDEX 2010
33. SERI2010
New Jersey Total Tenant Landlord
New Jersey Rent Effective Effective
Total rent fell by 3.4% to $31.88. This
decrease is attributable to a 3.4% decline $45
in real estate taxes and a 5.8% drop in
$40
net rent. Operating expenses (+0.7%)
35.94
and electricity (+4.9%) increased for the $35 34.50
33.60
33.50 32.98 33.00
32.49 32.66 31.88
31.54 31.60 31.78
year. The value of concession packages $30 30.54 30.64 30.50
28.05
27.90 27.34 27.48
26.80
posted a third year of growth, increasing $25 25.60
23.95
by 15.0% to $57.50. Tenant effective 21.40
20.07
$20 19.23 19.13
rent, $23.95, fell by 6.5% year-on-year.
15.54
Landlord effective rent decreased even $15 14.63 14.88 14.90 14.19
11.68
more dramatically, by 13.0% to $10.16. $10 10.16
$5
$0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Philadelphia Total Tenant Landlord
Philadelphia Rent Trends Rent Effective Effective
Total rent declined by 1.5% to $28.90.
Operating expenses increased by $35
1.2% and tenant electric rose by 5.0%. 31.05 31.11 30.95 30.50
$30
In contrast, real estate taxes were 28.15
29.10
27.35
28.92 29.33 28.90
26.50
unchanged and net rent dropped by $25 24.28 24.66
26.24 25.93
24.74
23.10 23.12
3.9%. The value of concession packages 21.14 21.52
22.69
increased by 7.1% to $45.00. Tenant $20 19.84
effective rent dipped by 1.8% to $22.69. $15
Landlord effective rent registered an 11.42 11.81
12.67 12.05
10.52
even more substantial decline of 7.2% to $10
8.53 8.28
7.24 7.60 7.68
$7.68. 6.29
$5
$0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
STUDLEY EFFECTIVE RENT INDEX 2010 29