CRE companies experience higher rents, taxes

Rents have increased for many property owners, but so have taxes.

A report from the Building Owners and Managers Association showed that the commercial real estate market has has experienced both positives and negatives this year.

The association's 2012 Experience Exchange Report showed that rent income rose 2.5 percent for property management companies to a total of $22.15 per square foot. In 2011, the figure was $21.61 per square foot. Total operating costs rose 1.3 percent, while the same figure while factoring in expenses increased 4.2 percent. Rental income jumped 2.7 percent.

"The increase in rental rates alone makes it a positive report," Brian Green, CFO and VP of Finance, Administration, IT and Research for BOMA, told "It is a welcome indication that the industry is finally on the upswing."

Despite this, Green noted that taxes are on the rise, and this should continue for the next couple of years, according to the news source. This is due to many property managers having difficulty at both the local and state levels regarding various laws in place.

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