BOMA 2020 OFFICE MARKET STUDY 2020... · 2020. 7. 9. · BOMA 2020 Office Market Study ® focuses...

BOMA 2020 OFFICE

MARKET STUDY

A new perspective on the impact of U.S. office buildings on the economy

Legal Notice

Building Owners and Managers Association (BOMA) International is a not-for-profit corporation, incorporated in the State of Illinois, which is exempt from federal taxation under Section 501(c)(6) of the Internal Revenue Code, whose purposes include to actively and responsibly represent and promote the interests of the commercial real estate industry and disseminate education programs on the commercial real estate industry. This document was prepared by Dr. Stephen S. Fuller of George Mason University for BOMA International to provide information to those in the commercial real estate industry and other interested parties about the economic impact of office building operations (including management, maintenance and repair, servicing and utilities) in the office markets served by BOMA local associations. Because the market boundaries of BOMA local associations are not always coterminous with the metro areas that they represent, the data presented in this document may differ according to the geographic areas in question.

BOMA publications are intended to provide current and accurate information and are designed to assist readers in becoming more familiar with the subject matter covered. BOMA published this document for a general audience in accordance with all applicable laws, including the antitrust laws. Such publications are distributed with the understanding that BOMA does not render any legal, accounting or professional advice. Use of this publication is voluntary, and reliance on this document should be undertaken based on an independent review by the user. Information provided in this document is “as is” without warranty of any kind, either expressed or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose or freedom from infringement. BOMA hereby disclaims all liability for any claims, losses or damages in connection with use or application of this document.

This document is the sole and exclusive property of BOMA. Reproduction or redistribution in whole or in part without the express written consent of BOMA is prohibited.

Copyright ©2020 by Building Owners and Managers Association (BOMA) International. All rights reserved. No portion of this document may be reproduced without permission.

Acknowledgements

BOMA International wishes to extend its appreciation to those companies and individuals who contributed to the development of Where BOMA 2020 Office Market Study: A new perspective on the impact of U.S. office buildings on the economy.

Yardi Systems, Inc.

Stephen S. Fuller, Ph.D., Author

John Salustri, Editor

TABLE OF CONTENTS

Executive Summary 5

Research Approach 6

Building Expenditures & the National Economy 8

88 Markets—State by State 10

City by City: How Building Expenditures Impact the Top 30 15

Building Expenditures & Jobs 16

Trends to Watch 17

Conclusions 18

BOMA 2020 Office Market Study: Key Findings At a Glance 19

Appendix A: Glossary of Terms & Usage 20

Appendix B: Office Market Inventory and Annual Operating Costs by State and MSA 21

Appendix C: Jobs Supported by Office Building Operating Expenditures 25

Appendix D: Economic Multipliers & Impact Calculations 29

Appendix E: Aggregate Economic Impact Multipliers for Building Operations 30

Appendix F: Yardi® Matrix Definition of Building Operating Costs 34

Appendix G: BOMA Local Associations 35

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About BOMA International

Founded in 1907, the Building Owners and Managers Association (BOMA) International is a federation of U.S. local associations and global affiliates. The leading trade association for commercial real estate professionals for more than 100 years, it represents the owners, managers, service providers and other property professionals of all commercial building types, including office, industrial, medical, corporate and mixed-use. BOMA International is the partner individuals in the commercial real estate industry choose to maximize value for their careers, organizations and assets. Its mission is to advance a vibrant commercial real estate industry through advocacy, influence and knowledge. Learn more at www.boma.org.

BOMA International Officers:

Scott O. Jones, PEChair and Chief Elected OfficerPrincipal Jacobs

Shelby Christensen, LEED Green AssociateChair-ElectSenior Vice President, OperationsLiberty Property Trust

Mark Dukes, BOMA Fellow, CCIM, RPAVice ChairVice President, Asset ManagementPhysicians Realty Trust

Keith MajorSecretary/TreasurerSenior Vice President, OperationsBentallGreenOak (Canada) LP

Henry H. Chamberlain, APR, FASAE, CAEPresident and Chief Operating OfficerBOMA International

About the Author

Professor Stephen S. Fuller, Ph.D., joined the faculty at George Mason University in 1994 as professor of Public Policy and Regional Development. In 2001, he was appointed university professor and, in 2002, he became the Dwight Schar Faculty Chair. He served as director of the Center for Regional Analysis from 2002 to 2015 and is currently serving as the founding director of the Schar School’s Stephen S. Fuller Institute. Prior to joining George Mason University, he served on the faculty at George Washington University for 25 years. Dr. Fuller received a B.A. in economics from Rutgers University and his doctorate in regional planning and economic development from Cornell University.

About the Editor

John Salustri is one of the nation’s most respected writers in the field of commercial real estate. A regular contributor to BOMA Magazine, he is a multiple award winner for excellence in journalism. Salustri is best known as the founding editor of GlobeSt.com, prior to which, he was editor of Real Estate Forum. Salustri currently works as a freelance writer, editor and voice-over artist.

About Yardi Matrix

Yardi® Matrix provides data and analysis of current office market fundamentals, as well as other commercial and residential property types, at the property, submarket, market and national levels.

4

EXECUTIVE SUMMARY

Think about the process of going to work. From the time you get into your car (or your train or commuter ferry), you are not alone. You are a part of a massive engine of economic production, a contributor to the local, state and national economies. Whether you’re purchasing a bagel at the lobby deli or making decisions that drive seven-digit corporate expenditures, the movement of capital—small or large—accrues to economic gain.

The American office is the platform for that gain. In a very real sense, it could be said that if the U.S. Gross Domestic Product (GDP) rides on the back of American business, American business (largely) rides on the back of the nation’s inventory of office buildings.

An Industry unto Itself

But office buildings—the focus of this report—are so much more than the little bagel shop or multinational corporations. They are sites of employment for the people who construct, maintain and manage the building, and a host to major expenditures of their own. In this way, America’s office buildings are themselves massive engines of direct and indirect capital movement.

These expenditures support jobs across all sectors of business and represent a growing share of the local, state and national economies. Even as America—and for that matter, the globe—redefines how it works, the prime location for work remains the office.

The data represented here specifically highlights U.S. private-sector office buildings of a certain size in the markets served by BOMA’s 88 local associations to best represent what BOMA members are contributing to the economy. This focus provides the clearest picture yet of the direct economic impact of BOMA members across the U.S. The 6.6 billion square feet of privately- owned office space contributed $204.4 billion to the national GDP. Included in that is $79.2 billion in direct operating expenditures. Understanding the impact of this on the economy’s continued vitality is important for business and government leaders as they consider the strategic positions of their respective communities in an increasingly competitive global economy.

Breaking this massive contribution down still further:

• For each dollar spent on office building operations, the national economy gained $2.58. The result is that the above-mentioned total $79.2 billion in direct operating expenditures contributed $204.4 billion to the 2018 GDP.

• For each dollar spent on operations, U.S. workers enjoyed an additional $0.79 in personal earnings. Again, that $79.2 billion put $62.5 billion in workers’ pockets.

In terms of jobs, consider that:

• For each $1 million spent in office building operations, 17.7 jobs were supported. Here, that $79.2 billion in annual operating outlays supported a total of 1.4 million direct, indirect and induced jobs (see Glossary, page 20) across all sectors of the national economy. Twenty- five percent of that—349,544 of these jobs—were directly related to building operations. Put another way, every operations job supported 3.0 additional jobs across all sectors in the local, metropolitan area, state and national economies.

• Assuming an occupancy rate of 85 percent, the 6.6 billion square feet of private office space in BOMA’s local association portfolios provided work space for an estimated 29.4 million jobs. Further, their productivity was supported and enhanced by the operational and management services paid for by these operating expenditures. Casting the net of economic gain still wider, these office workers went out and spent money (remember that bagel shop?), always to the annual economic good of the city and state.

All of the above are prime benefits derived from the operational expenditures of office buildings. Then come the secondary benefits. As that $79.2 billion is re-spent and cycled through the local, state and national economies, it generates additional economic activity reflecting a multiplier of 2.58. This comes in the creation and support of significant job growth (direct and indirect) and the generation of new personal earnings, thus further stimulating the economy. These direct and indirect economic impacts are important because of their magnitude, dependability and long-term growth pattern.

And you thought it was just another day at work in the office.

5

Occupancy

85%

$204.4 billion Contribution to GDP

1,399,319 Jobs Supported

$62.5 billion New Personal

Earnings

6

RESEARCH APPROACH

BOMA 2020 Office Market Study focuses on all commercial, privately owned office buildings of 25,000 square feet or larger within the office markets served by BOMA International’s 88 U.S. local associations. It includes both tenant-occupied and owner-occupied buildings, but it excludes government-owned assets. Even with those exclusions, the total measurement paces out to 6.6 billion square feet.

Space usage data from Yardi® Systems’ Matrix application were aggregated by groupings of ZIP codes that coincide with BOMA local association boundaries. At the metropolitan level, ZIP codes conform to the boundaries used in the U.S. Census Bureau’s definition of Metropolitan Statistical Areas (MSA).

The operating cost data for these office buildings were also developed by Yardi® Matrix. For the definition of which expenses are included in these data, see Appendix F. For office markets where operating cost data were not collected, estimates were made based on similar markets in the same state where these were available or similar markets in adjacent states. However, if these data were included in the 2016 edition of Where America Goes to Work, these values were used and adjusted at two percent per year to 2018 dollar values.

These data are reported in two primary tables: In Table 2, the data for each BOMA local association appears under their respective state. This includes line items for the nation’s top 30 markets (marked by an *) where BOMA has local associations. These 30 markets also appear listed separately and in alphabetical order in Table 3.

For the Washington, D.C., metropolitan area, spanning the District of Columbia and portions of Maryland and Virginia, the data are reported alphabetically under the District of Columbia and not within the two separate states. Minneapolis and St. Paul, Minnesota, are reported as separate market areas, although the multipliers used were for the combined MSA. Similarly, San Francisco and Oakland-East Bay in California, as well as Dallas and Fort Worth in Texas, are reported as independent market areas.

The economic impacts of direct spending for building operations in 2018 use the most recent multipliers (Regional Input-Output Modeling System, RIMS II) purchased from the Bureau of Economic Analysis of the U.S. Department of Commerce. State multipliers are used to calculate the statewide impacts of local operating expenditures, and metropolitan area-level multipliers are used to calculate the economic impacts for the 30 MSAs reported separately. For the Washington, D.C. metropolitan area, which spans portions of three states (Maryland, Virginia and West Virginia) and the District of Columbia, the multipliers for the District of Columbia were used to calculate the Table 2 impacts.

Note: For purposes of this report, that is the definition of what henceforward will be called the national office building stock or inventory.

6.6 billion square feetTOTAL OFFICE SPACE

TENANT OWNER

OCCUPIED

RESEARCH APPROACH

5

The economic impact of office building operating expenditures is a function of what is being purchased, whether or not it is locally supplied, and how labor- intensive these services or products are. That is, the more labor-intensive these services are, the greater their payroll effect, the more likely the benefits will be retained locally and the broader the impacts are across the retail and consumer services sectors in the local economy. Office building operating expenditures were separated into four groups: utilities, management/ administrative, maintenance and repair and services to buildings. The total operating expenditures associated with each of these four categories was calculated across the office markets of all 88 BOMA local associations in 2018.

These multipliers and the economic impact calculations are discussed in Appendix D and are presented by state and metropolitan area in Appendix E.

These multipliers were newly released in 2018. Generally, the post-recession multipliers are smaller than the pre-recession multipliers with fewer direct jobs being generated per $1 million in office building operating expenditures. Also, lower personal earnings were generated as a result of the new direct, indirect and induced jobs supported by these expenditures. (See The Ripple Effect, page 9, and the Glossary, page 20.)

This changing personal earnings profile reflects the increased efficiency of the industry and increased outsourcing of building operations, in addition to cost savings resulting from the increased adoption of technology in building operations and systems (a national trend since the recession).

It is important to note that, while operating expenses typically include taxes, fees and insurance, these categories of expenditures are not included in this report, as they do not generate direct local economic benefits.

It should also be noted that, with a new data source and different building parameters as the foundation of this report, direct year-over-year comparisons with previous years’ data are difficult. But certain macro trends are still discernible, and this year’s study sets the stage for future comparisons.

The results of these analyses—the 2018 economic impacts of privately owned commercial office building operating expenditures of their host states’ economies’ and the 30 metropolitan area economies—are presented in the following pages. For more detail on the research methodology, see Appendix D.

The Nation’s Top 30 Markets

7

BUILDING EXPENDITURES & THE NATIONAL ECONOMY

The national office building inventory, as defined in the previous section, generated annual expenditures totaling $79.2 billion, or $12.05 per square foot. These buildings, and therefore those expenditures, supported local employment and business activities in four broad categories: utilities, repairs and maintenance, management and building services. Table 1 presents a summary of the economic impacts generated by annual expenditures for office building operations.

Table 1: Operational Expenditures: The Economic Impact

Sources: BOMA International, Yardi® Matrix, The Stephen S. Fuller Institute at the Schar School, GMU1As defined for purposes of this report

Contribution to GDP

$204,406,193,008

New Personal Earnings

$62,478,403,361

Jobs Supported

1,399,319

Total Building Operating Outlays

$79,201,880,410Average Annual

Operating Cost (SF)

$12.05

Total Office Space (SF)1

6,570,913,694

IMPACTS ON U.S. ECONOMY

8

BUILDING EXPENDITURES & THE NATIONAL ECONOMY

The Ripple Effect

The $79.2 billion in operating outlays starts a ripple effect of ever-larger GDP gains.

Before we explore that dynamic, it is necessary to define some terms (see also Building Expenditures & Jobs, page 8, and the Glossary, page 20). First come direct workers, those jobs supported directly by spending for office building operations, largely employees of the building ownership and management firms or contractors providing services directly to them. Then come the indirect jobs. These are suppliers and vendors supporting the industry. Finally come the induced jobs, supported by the payroll spending of the industry’s direct employees acting as consumers, frequenting the coffee shops, dry cleaners and home improvement stores, and generally making the city in which they live an economically vibrant place.

When the additional outlays generated by that $79.2 billion are accounted for and we factor in the outlays such as indirect and induced expenditures, in the immortal words of U.S. Senator Everett Dirksen, pretty soon you’re talking about real money. In fact, $204.4 billion in real money flowed into the U.S. GDP last year as a result of those outlays.

Included in that impressive figure is the $62.5 billion in new personal earnings (labor income) that came from both doling out payrolls and the re-spending of that payroll money for consumer goods and services. At the national level, where these annual office building operating expenditures have their greatest cumulative impact, each $1 in direct operating outlays generated $0.79 of new personal earnings, which would contribute directly to the tax bases in the local and state jurisdictions served by these office markets.

This annual spending, spread across the national inventory, supported a total of 349,544 direct workers. Each of these direct jobs in turn supported three additional indirect and induced jobs across the breadth of the local, state and national economies, bringing the total of jobs supported to nearly 1.4 million in 2018.

Pulling back still further, these indirect and induced jobs totaled almost 1.05 million positions, fully 75 percent of the total jobs supported by these annual office building operating expenditures. At the national level, the aggregate jobs multiplier for buildings accounted for in this survey was 17.7 jobs per $1 million in outlays for building operations.

An Economic Powerhouse

On a daily basis, and in a very real sense, the generation of the nation’s annual GDP starts at the cubicle level. In addition to all of the work represented by the outlays for building operations—most of which goes on behind the scenes—there are the businesses housed within the national office inventory. Assuming an 85 percent occupancy rate and an average of 190 square feet per office worker, that 6.6 million square houses 29.4 million workers, each producing an average $131,090 in annual GDP value, for a total annual Gross Regional Product (GRP) contribution of $3.854 trillion.

In 2018, the GDP value of this white-collar cohort accounted for 18.7 percent of the U.S. economy.

Each $1 in direct operating outlays generated $0.79 of new personal earnings.

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88 OFFICE MARKETS—STATE BY STATE

Table 2 divvies out the economic impact of the national office inventory by state, and that output is almost as impressive as on the national level. It should be noted that BOMA local associations representing metropolitan-wide office markets are included here (*) and identified separately in Table 3. There are no data provided for states not represented by those local associations.

For each listed locale, there are five data columns:

The first column—Total Expenditures—is the total annual expenditures for office building operations. The square footage of this office space was multiplied by the average 2018 operating cost in its respective market area, both provided by Yardi® Matrix.

The second column—Contributions to the State Economy—represents the total contribution of the annual building operating expenditures in each office market to their respective state’s economy, its gross state product (GSP). This is true as well for in the cases of the 30 metropolitan areas (*).

The third column—New Taxable Personal Earnings—represents the new personal earnings (wages and salaries) generated as a result of the building operating expenditures. This is new income that accrued to workers residing in the state or metropolitan area within which the local associations are located. This encompasses all workers in businesses that benefit from the payroll spending of employees involved in building operations and the re-spending of these payroll dollars across all sectors of the local or state economies.

The fourth column—Jobs Supported—represents the full-time, year-round direct, indirect and induced employment impact of the expenditures shown in column one.

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88 MARKETS


Alabama

Alabama $209,372,663 $393,599,668 $124,508,688 3,263

North Alabama $72,493,485 $136,280,502 $43,110,063 1,130

Alaska

Anchorage $158,208,259 $258,698,190 $84,692,836 1,882

Northwest Alaska $70,927,944 $115,979,601 $37,969,502 844

Arizona

Greater Phoenix* $1,074,155,910 $2,089,206,392 $672,958,678 16,317

Greater Tucson $136,738,048 $265,952,084 $85,666,387 2,077

Arkansas

Greater Little Rock $103,141,658 $181,279,199 $56,609,299 1,428

California

Inland Empire $74,252,732 $149,596,979 $47,699,955 971

Greater Los Angeles* $2,030,406,612 $4,090,660,201 $1,304,333,207 26,557

Oakland-East Bay* $566,995,171 $1,142,325,172 $364,237,698 7,416

Orange County $1,305,018,858 $2,629,221,493 $838,344,114 17,069

Sacramento $829,202,554 $1,670,594,386 $532,679,721 10,846

San Diego* $1,215,853,950 $2,449,580,953 $781,064,577 15,903

San Francisco* $3,096,633,954 $6,238,788,428 $1,989,277,652 40,502

Silicon Valley $1,758,076,141 $3,541,996,000 $1,129,388,113 22,995

Colorado

Southern Colorado $124,047,752 $255,863,995 $82,128,916 1,856

Denver Metro* $1,794,725,558 $3,701,845,805 $1,188,242,924 26,846

Connecticut

Greater Hartford $386,248,670 $693,886,079 $211,442,178 4,239

Southern Connecticut $779,252,910 $1,399,908,371 $426,582,524 8,551

District of Columbia

Washington, D.C., MSA* $4,319,217,295 $5,293,632,717 $494,334,419 9,361

Florida

Ft. Lauderdale and the Palm Beaches $1,142,967,148 $2,243,387,345 $726,155,604 18,640

Greater Tampa Bay* $790,087,285 $1,550,763,571 $501,962,204 12,885

Jacksonville $395,538,938 $776,353,938 $251,295,776 6,451

Miami-Dade* $1,013,099,934 $1,988,487,223 $643,647,716 16,522

Total Contributions to New Taxable Jobs State Expenditures the State Economy Personal Earnings Supported

Table 2: Economic Impacts of Office Building Operations by State and Metropolitan Area

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Orlando* $470,438,405 $923,364,740 $298,881,280 7,672

Southwest Florida $150,645,732 $295,683,677 $95,709,000 2,457

Tallahassee $46,386,812 $91,046,874 $29,470,701 757

Georgia

Atlanta* $2,166,032,730 $4,592,909,952 $1,444,473,077 35,506

Hawaii

Hawaii $290,162,769 $510,360,041 $165,008,313 3,701

Idaho

Boise $112,109,860 $192,013,359 $61,483,850 1,639

Illinois

Chicago* $2,454,080,267 $5,271,119,005 $1,605,888,775 33,244

Peoria $240,160,107 $515,839,893 $157,154,770 3,253

Suburban Chicago $843,490,068 $1,811,732,317 $551,958,813 11,426

Indiana

Indianapolis* $352,439,240 $683,106,545 $207,868,664 4,800

Michiana $53,511,385 $103,717,104 $31,561,015 729

Iowa

Iowa $251,464,300 $430,940,658 $129,101,772 3,211

Kansas

Wichita $122,850,165 $229,484,108 $65,417,713 1,563

Kentucky

Kentucky $354,136,402 $660,783,113 $195,917,111 4,919

Louisiana

New Orleans $206,041,861 $378,179,533 $121,744,984 3,056

Shreveport $56,820,742 $104,291,632 $33,573,956 843

Maryland

Baltimore $892,152,830 $1,604,826,814 $469,428,515 10,121

Massachusetts

Boston* $2,821,146,645 $5,186,678,107 $1,583,439,083 32,354

Michigan

Metro Detroit* $1,037,176,140 $2,019,693,097 $647,223,841 14,759

Mid-Michigan $194,486,865 $378,724,272 $121,364,666 2,768

West Michigan $175,101,665 $340,975,471 $109,267,816 2,492

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Minnesota

Duluth $49,721,328 $99,724,825 $31,124,308 670

Minneapolis* $949,397,754 $1,904,183,341 $594,299,259 12,802

St. Paul* $294,101,008 $589,871,040 $184,099,879 3,966

Mississippi

Mississippi $99,784,747 $175,067,349 $54,764,364 1,439

Missouri

Kansas City $731,782,257 $1,427,999,896 $413,694,804 10,170

St. Louis* $670,719,613 $1,308,842,254 $379,174,565 9,321

Nebraska

Omaha $234,632,256 $416,272,818 $129,669,516 3,138

Nevada

Nevada $316,548,242 $553,492,515 $176,855,503 4,268

New Jersey

New Jersey $2,833,731,565 $5,625,878,119 $1,632,158,538 33,654

New Mexico

New Mexico $128,718,297 $215,149,415 $69,340,547 1,844

New York

Capital Region-Albany $182,831,121 $326,129,583 $94,084,895 1,909

Greater Buffalo $219,677,099 $391,854,518 $113,045,835 2,294

Central New York $102,216,041 $182,330,418 $52,600,375 1,067

Long Island $759,336,089 $1,354,484,732 $390,754,351 7,929

New York City* $15,160,389,444 $27,042,723,681 $7,801,536,408 158,312

Greater Rochester $185,703,646 $331,253,521 $95,563,096 1,939

Westchester $428,715,253 $764,731,551 $220,616,869 4,477

North Carolina

Greater Charlotte* $859,642,748 $1,709,292,149 $535,321,030 13,148

Raleigh-Durham* $554,065,438 $1,101,689,865 $345,030,400 8,474

Ohio

Akron $96,207,644 $196,412,716 $60,221,175 1,385

Columbus $478,010,187 $975,881,697 $299,210,476 6,880

Dayton $238,987,690 $487,905,318 $149,594,345 3,440

Greater Cincinnati $365,831,258 $746,862,805 $228,992,076 5,265

Greater Cleveland* $774,272,727 $1,580,716,486 $484,656,013 11,144

Toledo $93,968,031 $191,840,433 $58,819,289 1,352

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Note: *Indicating metro area; calculated using state multipliers for both non-metro areas and metro areas

Note: BOMA local associations are defined by ZIP codes and the metropolitan areas conform to the U.S. Census definitions.

Oklahoma

Oklahoma City $210,147,114 $398,470,450 $127,879,773 3,231

Tulsa $214,965,951 $407,607,687 $130,812,155 3,305

Oregon

Portland Metro* $607,617,031 $1,114,415,207 $342,513,721 7,863

Pennsylvania

Philadelphia* $1,400,051,950 $2,849,840,746 $858,161,843 18,380

Pittsburgh $847,151,804 $1,724,398,676 $519,261,698 11,122

Tennessee

Chattanooga $84,862,927 $175,729,905 $53,582,452 1,238

Knoxville $120,003,800 $248,497,869 $75,770,399 1,750

Memphis $320,092,628 $662,831,809 $202,106,485 4,668

Nashville* $507,565,013 $1,051,040,252 $320,476,550 7,402

Texas

Austin* $1,039,454,639 $2,315,593,100 $730,346,816 16,696

Corpus Christi $58,680,081 $130,721,617 $41,230,092 943

Greater Dallas* $2,677,643,327 $5,964,986,041 $1,881,379,143 43,008

Fort Worth* $686,312,118 $1,528,897,505 $482,220,052 11,023

Houston* $3,098,652,988 $6,902,869,261 $2,177,191,056 49,770

San Antonio $575,789,718 $1,282,686,755 $404,564,251 9,248

Utah

Utah $1,018,821,917 $2,090,851,808 $665,036,006 16,645

Washington

Seattle-King County* $1,528,530,766 $2,869,319,741 $908,329,408 19,586

South Puget Sound $127,091,893 $238,573,725 $75,524,358 1,629

Spokane $79,631,572 $149,482,396 $47,321,062 1,020

Wisconsin

Wisconsin $452,323,270 $842,112,847 $266,768,956 6,258

State Total ($) $79,201,880,410 $152,232,877,047 $45,649,974,656 1,000,891

Spill Over ($) $52,173,315,961 $16,828,428,705 398,429

US Total ($) $79,201,880,410 $204,406,193,008 $62,478,403,361 1,399,319

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CITY BY CITY: HOW BUILDING EXPENDITURES IMPACT THE TOP 30

The state-level economic impacts of the national office inventory, as reported in Table 2, include the 30 largest BOMA-covered metropolitan areas. In Table 3, these 30 MSAs are highlighted separately. As should be expected, these outlays are significant, although smaller than at the state level owing simply to the fact that the states’ economies are larger and capture a greater percentage of these benefits than their respective metropolitan area economies.

Metropolitan Area Total Expenditures Output Personal Earnings Jobs Supported

Table 3: Metropolitan Area Office Market Economic Impacts

Atlanta $2,166,032,730 $4,462,027,424 $1,364,600,620 33,574

Austin $1,039,454,639 $1,943,780,175 $598,725,872 14,137

Boston $2,821,146,645 $4,852,372,230 $1,309,012,043 27,647

Chicago $2,454,080,267 $5,129,027,758 $1,560,795,050 34,112

Dallas $2,677,643,327 $5,649,827,421 $1,745,823,450 40,432

Denver Metro $1,794,725,558 $3,499,714,839 $1,055,298,628 23,511

Fort Worth $686,312,118 $1,448,118,569 $447,475,501 10,363

Greater Charlotte $859,642,748 $1,702,092,641 $500,312,079 12,723

Greater Cleveland $774,272,727 $1,401,433,636 $380,167,909 8,982

Greater Los Angeles $2,030,406,612 $3,898,380,695 $1,096,419,570 22,334

Greater Phoenix $1,074,155,910 $2,116,087,143 $671,347,444 16,220

Greater Tampa Bay $790,087,285 $1,516,967,587 $470,101,935 12,009

Houston $3,098,652,988 $6,042,373,327 $1,871,586,405 43,381

Indianapolis $352,439,240 $687,256,517 $209,701,348 4,864

Metro Detroit $1,037,176,140 $1,918,775,859 $570,446,877 12,861

Miami-Dade $1,013,099,934 $1,864,103,878 $577,466,962 14,893

Minneapolis $949,397,754 $1,898,795,508 $569,638,653 13,102

Nashville $507,565,013 $1,025,281,327 $314,690,308 7,360

New York City $15,160,389,444 $27,895,116,577 $8,368,534,973 174,344

Oakland-East Bay $566,995,171 $992,241,550 $266,487,731 5,386

Orlando $470,438,405 $842,084,745 $248,391,478 6,398

Philadelphia $1,400,051,950 $2,772,102,862 $823,230,547 17,361

Portland Metro $607,617,031 $1,166,624,700 $361,532,134 7,960

Raleigh-Durham $554,065,438 $975,155,170 $270,383,934 6,649

San Diego $1,215,853,950 $2,103,427,333 $638,323,324 13,131

San Francisco $3,096,633,954 $5,419,109,420 $1,455,417,959 29,418

Seattle-King County $1,528,530,766 $2,705,499,456 $813,178,368 17,884

St. Louis $670,719,613 $1,328,024,835 $410,480,403 8,853

St. Paul $294,101,008 $588,202,017 $176,460,605 4,059

Washington, D.C. $4,319,217,295 $6,867,555,499 $1,995,478,390 43,624

Metro Totals $56,010,905,664 $104,711,560,699 $31,141,510,498 687,571

15

BUILDING EXPENDITURES & JOBS

Among the important benefits of this annual operational spend are the jobs it supports, which naturally fall into three categories as defined previously: Direct beneficiaries, who totaled 349,544 in 2018, and indirect and induced jobs. Every direct job supports three indirect and induced positions, which in turn adds up to 1.04 million positions. In total, the annual office building operating expenditures in 2018 supported 1.4 million jobs, or 17.7 jobs per $1 million in operating expenditures.

Sources: BOMA International, Yardi® Matrix, The Stephen S. Fuller Institute at the Schar School, GMU1As defined for purposes of this report2 Sum of national office square feet and jobs supported by expenditures for building operations. 3 Jobs supported outside of the state in which the direct expenditures for office building operations occurred.

Area Office Inventory1 Direct Jobs Indirect Jobs Total Jobs

State2 6,570,913,694 308,840 692,051 1,000,891

Spillover3 40,704 357,724 398,429

U.S. 349,544 1,049,775 1,399,319

Table 4: Direct and Indirect Jobs Associated with Expenditures for Office Building Operations

Every direct job supported three indirect and induced jobs, across the breadth of the state and national economies.

Direct, indirect and induced jobs supported by the operating spend of the national office inventory in 2018 totaled 1.4 million.

Every $1 million spent on building operations supported 17.7 direct, indirect and induced jobs.

16

TRENDS TO WATCH

Obviously, the economy has evolved significantly since the Great Recession, so it stands to reason that these changes would be reflected in the impact that building operating expenditures have on their respective metropolitan and state economies.

One of the biggest changes in the years that have passed since the recession is in the adoption of technology and the resulting (presumed) increase in workforce productivity. For office building operations, these efficiencies have affected the mix of on-site labor; the use of contract and so-called gig economy labor; the durability of building equipment and materials; the effectiveness of building maintenance and cleaning supplies; innovations in security systems; and much more. Economic changes have also impacted the supply chain and, short of tariff disputes, made our economy more global.

Trends such as these are naturally reflected in building operating expenditures and their impact on the GDP, mostly, for purposes of this report, in the multipliers used to determine total contributions to the GDP, jobs and personal earnings (See Glossary, page 20, for in-depth multiplier definitions). Specifically, we are seeing:

Other factors also are at work here, and they may help to explain these trends, especially the changes in personal earnings accruing to local resident workers. That multiplier is locally specific, reflecting the wage profile of jobs that are held by residents of the metropolitan area or state in which these building operating expenditures take place. Commuting patterns and sub-contracting (in this age of doing more with less) may affect the mix of salary levels, with lower-paying jobs being held by non-resident workers, with higher-paying jobs going to local residents who presumably can afford housing more convenient to their places of work.

There is another dynamic at work here. As noted in the Research Approach (page 6), a new data provider to this study makes direct year-over-year comparisons more challenging. Nevertheless, the overall trend that has taken shape since the Great Recession is toward greater efficiency and cost-effectiveness in operating and managing the national stock of office buildings.

The contribution of a dollar of direct office building expenditure now generates a smaller contribution to the GDP. In 2013, this multiplier was 2.76; in 2015, it was 2.64; and, in 2018, it was 2.58.

The multiplier used to determine the number of full-time, year-round jobs (direct and indirect) supported by building expenditures has also shrunk. In 2013, that number was 21.9 jobs per $1 million of operating expenditures; in 2015, it was 19.6 jobs; and, in 2018, it was 17.7 jobs.

Finally, the multiplier used to determine the earnings accruing to local resident workers has also decreased. In 2013, it was $0.87 per $1.00 of operating expenditures; in 2015, it was $0.76; and, in 2018, it was $0.79.

17

CONCLUSIONS

The annual operating expenditures for privately owned commercial office buildings in the United States clearly continue to be a major source of economic activity, jobs and personal earnings, all to the benefit of their host economies. The economic impacts of $79.2 billion in operating expenditures in 2018 for office buildings served by the 88 local associations of BOMA International contributed $204.4 billion to the national GDP, generated new personal earnings totaling $62.5 billion accruing to workers residing locally and supported 1.4 million full-time, year-round jobs.

Additionally, these buildings supported the broader economy by providing a productive working environment for the estimated 29.4 million workers who work there.

To the extent that the economy continues to expand, so, too, should the benefits of building expenditures to the local, state and national economies. While the economic benefits from construction end when the building is ready for occupancy, the economic benefits flowing from the annual operating expenditures associated with the office building inventory extend over the lifespan of the buildings and grow as this inventory expands, supporting the economy’s vitality, creating new jobs, generating personal income and contributing year after year to the local tax base.

$62.5 billion Salaries and Income

1.4 million Jobs Created and Supported

$204.4 billion Contribution to

the National Economy

Served by 88 Local Associations

18

BOMA 2020 OFFICE MARKET STUDY: KEY FINDINGS AT A GLANCE

The key findings of this research are summarized below and in Table 5:

• The operating expenditure for the national inventory of office buildings included in this analysis totaled $79.2 billion in 2018, or $12.05 per square foot. In turn, those expenditures:

a) Added $204.4 billion to the U.S. GDP, reflecting a total output multiplier of 2.58.

b) Generated $62.5 billion in new personal earnings, or 79 cents for each $1.00 of building operations expenditure.

c) Supported direct employment of 349,544 workers.

d) Supported 1.04 million indirect and induced jobs through the spending and re-spending of payroll dollars in both state and national economies.

• In addition, the 6.6 billion square feet of office space treated in this study accommodated more than 29.4 million workers (assuming 190 gross sq. ft. per worker and an 85 percent occupancy).

Sources: BOMA International, Yardi® Matrix, The Stephen S. Fuller Institute at the Schar School, GMU1As defined for purposes of this report and reflecting state-level economic multipliers.230 metropolitan area impacts reflecting metro-level multipliers included in respective state-level impacts.3 State-level impacts, plus spillover impacts generated in one state but accruing to another state, but not included in that state’s impact totals.

Area Total Total Personal Jobs Outlays Output Earnings Supported

State Impacts1 $79.2 $152.2 $45.6 1,000,891

Metro Area Impacts2 $55.0 $104.7 $31.1 687,571

U.S. Impacts3 $79.2 $204.4 $62.5 1,399,319

Table 5: Economic Impacts of Office Building Operating Expenditures, 2018($ in billions)

19

APPENDIX A Glossary of Terms & Usage

BOMA Local Associations: The 88 BOMA local associations are defined by their general office market areas, normally a political unit (state, metropolitan area) for which economic information is reported.

Direct Outlays: The annual spending associated with office building operations, including maintenance and repair, utilities, management and other services. (Note: See also Appendix F, page 34, for a breakdown and definitions of building operating costs as used by Yardi® Matrix.)

Economic Impact: The generation of new spending measured in dollars, including direct, indirect and induced activity, as these dollars are re-cycled through the local, state and U.S. economies.

Gross Regional Product (GRP); Gross State Product; (GSP); Gross Domestic Product (GDP): The value of goods and services produced within the respective geographic (and national) area.

Indirect Benefits: The additional economic benefits, measured in dollars or jobs resulting from the value generated by direct outlays or expenditures as these dollars are re-spent within the metropolitan, state and national economies. Indirect and induced benefits include increases in jobs and personal income that in turn contribute to retail and consumer services, education and health, transportation, housing utilities and government.

Multiplier: A number used to calculate the total economic impact of direct spending for office building operations. Types of multipliers include:

• Output multiplier, which measures the impact of a direct outlay on the overall economy.

• Personal earnings multiplier, measuring the total personal wages and salaries generated as a result of the direct outlays and the jobs they support.

• Employment multiplier, which measures the total number of jobs that can be supported by direct outlays (per $1 million). There is also a direct jobs multiplier that indicates how many indirect jobs are supported by each direct job generated in office building operations.

National Office Building Inventory: Buildings of 25,000 square feet or more within the service areas of BOMA International’s 88 local associations, including owner- and tenant-occupied buildings, but excluding government-owned assets.

Spillover Impacts: Economic impacts that are generated by direct spending for office building operations in one state or metropolitan area but realized by another state due to worker commutation. These economic impacts are not reflected as benefitting states’ multipliers but are captured in the U.S. multipliers and reported in the U.S. totals.

Total Output:

The sum of the direct and indirect impacts reflecting the combination of the initial expenditures and their subsequent accumulated value as these are cycled through the economy. This includes benefits from the re-spending of personal earnings and contributions to GDP, GSP or GRP.

20

Office Market Inventory and Annual Operating Costs by State and MSA APPENDIX B

Operating Expense Total RentableState Per Square Foot Square Feet

Alabama

Alabama $6.25 33,499,626

North Alabama $4.69 15,457,033

Alaska

Anchorage $9.60 16,480,027

Northwest Alaska $3.74 18,964,691

Arizona

Greater Phoenix* $7.73 138,995,330

Greater Tucson $8.82 15,503,180

Arkansas

Greater Little Rock $7.50 13,752,221

California

Inland Empire $7.81 9,504,958

Greater Los Angeles* $13.63 148,944,147

Oakland-East Bay* $11.74 48,312,472

Orange County $10.84 120,433,634

Sacramento $8.88 93,378,666

San Diego* $9.97 121,926,790

San Francisco* $18.10 171,122,566

Silicon Valley $10.14 173,380,290

Colorado

Southern Colorado $7.97 15,568,242

Denver Metro* $11.60 154,664,388

Connecticut

Greater Hartford $9.05 42,688,845

Southern Connecticut $14.82 52,581,168


Washington, D.C., MSA* $14.96 288,640,557

Florida

Ft. Lauderdale and the Palm Beaches $11.60 98,497,686

Greater Tampa Bay* $9.37 84,302,954

Jacksonville $8.17 48,401,730

Miami-Dade* $13.97 72,530,064

Orlando* $8.50 55,371,752

21

APPENDIX B Office Market Inventory and Annual Operating Costs by State and MSA

Southwest Florida $10.97 13,735,023

Tallahassee $6.20 7,476,920

Georgia

Atlanta* $9.61 225,346,726

Hawaii

Hawaii $8.55 33,937,166

Idaho

Boise $7.07 15,857,123

Illinois

Chicago* $14.21 172,725,244

Peoria $7.19 33,401,962

Suburban Chicago $9.06 93,100,449

Indiana

Indianapolis* $7.92 44,499,904

Michiana $7.04 7,601,049

Iowa

Iowa $9.59 26,221,512

Kansas

Wichita $10.28 11,945,757

Kentucky

Kentucky $7.94 44,601,562

Louisiana

New Orleans $9.42 21,872,809

Shreveport $6.40 8,878,241

Maryland

Baltimore $9.16 97,439,147

Massachusetts

Boston* $17.98 156,939,622

Michigan

Metropolitan Detroit* $7.81 132,767,043

Mid-Michigan $8.03 24,220,033

West Michigan $8.04 21,778,814

22


Office Market Inventory and Annual Operating Costs by State and MSA APPENDIX B

Minnesota

Duluth $8.50 5,849,568

Minneapolis* $11.82 80,321,299

St. Paul* $10.25 28,698,381

Mississippi

Mississippi $9.44 10,565,941

Missouri

Kansas City $10.04 72,857,652

St. Louis* $8.88 75,531,488

Nebraska

Omaha $8.50 27,616,791

Nevada

Nevada $6.73 47,035,400

New Jersey

New Jersey $12.23 231,741,214

New Mexico

New Mexico $7.04 18,283,849

New York

Capital Region-Albany $6.92 26,405,419

Greater Buffalo $7.66 28,693,456

Central New York $7.57 13,499,213

Long Island $14.16 53,625,430

New York City* $28.67 528,826,198

Greater Rochester $6.68 27,799,947

Westchester $13.19 32,507,981

North Carolina

Greater Charlotte* $8.16 105,348,376

Raleigh-Durham* $6.76 82,010,870

Ohio

Akron $7.40 13,001,033

Columbus $8.88 53,829,976

Dayton $6.14 38,897,736

Greater Cincinnati $7.43 49,250,304

Greater Cleveland* $9.41 82,299,397

Toledo $7.71 12,187,812

23


APPENDIX B Office Market Inventory and Annual Operating Costs by State and MSA

Oklahoma

Oklahoma City $6.44 32,611,284

Tulsa $6.95 30,939,256

Oregon

Portland Metro* $8.99 67,603,141

Pennsylvania

Philadelphia* $8.58 163,176,218

Pittsburgh $9.88 85,778,838

Tennessee

Chattanooga $7.86 10,796,810

Knoxville $8.41 14,265,787

Memphis $9.95 32,176,581

Nashville* $8.84 57,390,888

Texas

Austin* $14.32 72,607,896

Corpus Christi $9.42 6,229,308

Greater Dallas* $10.02 267,229,873

Fort Worth* $9.00 76,256,902

Houston* $11.78 262,954,259

San Antonio $10.48 54,941,767

Utah

Utah $7.78 131,021,337

Washington

Seattle-King County* $11.41 133,940,656

South Puget Sound $7.94 15,998,476

Spokane $7.51 10,600,582

Wisconsin

Wisconsin $8.96 50,459,981

US Total $12.05 6,570,913,694

1 Office space in privately owned commercial buildings of at least 25,000 square feet.

Note: BOMA local associations are defined by ZIP codes and the metropolitan areas conform

to the U.S. Census definitions.

24


Jobs Supported by Office Building Operating Expenditures APPENDIX C

Alabama

Alabama 33,499,626 3,263 1,070 2,193

North Alabama 15,457,033 1,130 371 759

Alaska

Anchorage 16,480,027 1,882 654 1,229

Northwest Alaska 18,964,691 844 293 551

Arizona

Greater Phoenix* 138,995,330 16,317 4,985 11,333

Greater Tucson 15,503,180 2,077 635 1,443

Arkansas

Greater Little Rock 13,752,221 1,428 482 946

California

Inland Empire 9,504,958 971 287 684

Greater Los Angeles* 148,944,147 26,557 7,841 18,716

Oakland-East Bay* 48,312,472 7,416 2,190 5,226

Orange County 120,433,634 17,069 5,040 12,029

Sacramento 93,378,666 10,846 3,202 7,643

San Diego* 121,926,790 15,903 4,695 11,207

San Francisco* 171,122,566 40,502 11,958 28,544

Silicon Valley 173,380,290 22,995 6,789 16,206

Colorado

Southern Colorado 15,568,242 1,856 540 1,316

Denver Metro* 154,664,388 26,846 7,813 19,033

Connecticut

Greater Hartford 42,688,845 4,239 1,378 2,860

Southern Connecticut 52,581,168 8,551 2,781 5,771


Washington, D.C., MSA* 288,640,557 9,361 3,994 5,366

Florida

Ft. Lauderdale and the Palm Beaches 98,497,686 18,640 5,660 12,980

Greater Tampa Bay* 84,302,954 12,885 3,913 8,973

Jacksonville 48,401,730 6,451 1,959 4,492

Miami-Dade* 72,530,064 16,522 5,017 11,505

Orlando* 55,371,752 7,672 2,330 5,342

Total Rentable Region Square Feet Jobs Direct Jobs Indirect Jobs

25

APPENDIX C Jobs Supported by Office Building Operating Expenditures


Southwest Florida 13,735,023 2,457 746 1,711

Tallahassee 7,476,920 757 230 527

Georgia

Atlanta* 225,346,726 35,506 10,373 25,133

Hawaii

Hawaii 33,937,166 3,701 3,701 -

Idaho

Boise 15,857,123 1,639 561 1,078

Illinois

Chicago* 172,725,244 33,244 9,662 23,582

Peoria 33,401,962 3,253 946 2,308

Suburban Chicago 93,100,449 11,426 3,321 8,105

Indiana

Indianapolis* 44,499,904 4,800 1,498 3,302

Michiana 7,601,049 729 227 501

Iowa

Iowa 26,221,512 3,211 1,051 2,161

Kansas

Wichita 11,945,757 1,563 506 1,056

Kentucky

Kentucky 44,601,562 4,919 1,630 3,288

Louisiana

New Orleans 21,872,809 3,056 1,025 2,031

Shreveport 8,878,241 843 283 560

Maryland

Baltimore 97,439,147 10,121 3,203 6,917

Massachusetts

Boston* 156,939,622 32,354 10,093 22,261

Michigan

Metropolitan Detroit* 132,767,043 14,759 4,365 10,394

Mid-Michigan 24,220,033 2,768 819 1,949

West Michigan 21,778,814 2,492 737 1,755

26

Jobs Supported by Office Building Operating Expenditures APPENDIX C


Minnesota

Duluth 5,849,568 670 199 472

Minneapolis* 80,321,299 12,802 3,791 9,011

St. Paul* 28,698,381 3,966 1,174 2,791

Mississippi

Mississippi 10,565,941 1,439 500 939

Missouri

Kansas City 72,857,652 10,170 3,058 7,112

St. Louis* 75,531,488 9,321 2,803 6,518

Nebraska

Omaha 27,616,791 3,138 972 2,166

Nevada

Nevada 47,035,400 4,268 1,353 2,915

New Jersey

New Jersey 231,741,214 33,654 9,882 23,772

New Mexico

New Mexico 18,283,849 1,844 643 1,201

New York

Capital Region-Albany 26,405,419 1,909 621 1,288

Greater Buffalo 28,693,456 2,294 746 1,548

Central New York 13,499,213 1,067 347 720

Long Island 53,625,430 7,929 2,579 5,351

New York City* 528,826,198 158,312 51,481 106,830

Greater Rochester 27,799,947 1,939 631 1,309

Westchester 32,507,981 4,477 1,456 3,021

North Carolina

Greater Charlotte* 105,348,376 13,148 3,984 9,164

Raleigh-Durham* 82,010,870 8,474 2,568 5,906

Ohio

Akron 13,001,033 1,385 401 984

Columbus 53,829,976 6,880 1,993 4,887

Dayton 38,897,736 3,440 996 2,443

Greater Cincinnati 49,250,304 5,265 1,525 3,740

Greater Cleveland* 82,299,397 11,144 3,228 7,916

Toledo 12,187,812 1,352 392 961

27

APPENDIX C Jobs Supported by Office Building Operating Expenditures


Oklahoma

Oklahoma City 32,611,284 3,231 1,057 2,173

Tulsa 30,939,256 3,305 1,081 2,223

Oregon

Portland Metro* 67,603,141 7,863 2,458 5,405

Pennsylvania

Philadelphia* 163,176,218 18,380 5,313 13,067

Pittsburgh 85,778,838 11,122 3,215 7,907

Tennessee

Chattanooga 10,796,810 1,238 387 851

Knoxville 14,265,787 1,750 547 1,203

Memphis 32,176,581 4,668 1,460 3,208

Nashville* 57,390,888 7,402 2,315 5,088

Texas

Austin* 72,607,896 16,696 4,955 11,740

Corpus Christi 6,229,308 943 280 663

Greater Dallas* 267,229,873 43,008 12,765 30,243

Fort Worth* 76,256,902 11,023 3,272 7,752

Houston* 262,954,259 49,770 14,772 34,998

San Antonio 54,941,767 9,248 2,745 6,503

Utah

Utah 131,021,337 16,645 5,054 11,591

Washington

Seattle-King County* 133,940,656 19,586 6,234 13,352

South Puget Sound 15,998,476 1,629 518 1,110

Spokane 10,600,582 1,020 325 696

Wisconsin

Wisconsin 50,459,981 6,258 1,913 4,344

State Total 6,570,913,694 1,000,891 308,840 692,051

Spill Over 398,429 40,704 357,724

US Total 6,570,913,694 1,399,319 349,544 1,049,775

Note: *Indicating metro area; calculated using state multipliers for both non-metro areas and metro areas

Note: BOMA local associations are defined by ZIP codes and the metropolitan areas conform to the U.S. Census definitions.

28

Economic Multipliers & Impact Calculations APPENDIX D

The total economic impacts of annual outlays for the operation of office buildings reflect the combination of direct outlays and the subsequent effects as these funds are circulated through the economy. In other words, re-spending these direct outlays generates additional economic activity. The total value of these combined direct and indirect values was estimated by the application of appropriate multipliers that have been calculated for each state and metropolitan area by the Bureau of Economic Analysis of the U.S. Department of Commerce, employing its Regional Input-Output Model System (RIMS II).

For this analysis, state and metropolitan area multipliers were purchased for: construction, maintenance and repair, utilities, management and services to buildings. These multipliers were weighed by their share of operating cost outlays for office buildings (Yardi® Matrix data was the source) and combined into a single series of multipliers. These aggregate multipliers (a different set for each state and metropolitan area. See Appendix E) were applied to the market data for each of the BOMA local associations to calculate the total economic impacts generated by these direct outlays.

The results of these calculations are estimates of:

(1) Output value, the total contribution to the U.S., state and metropolitan area economies.

(2) Personal earnings, new earnings realized by residents of the state or metropolitan area in which the spending occurs.

(3) The full-time, year-round jobs supported by these outlays.

The key variables governing the magnitude and significance of these economic impacts are their dollar value; the category of outlay (i.e.: construction, maintenance, etc.); the direct employment and payroll associated with the direct spending for building operations; the geographic area of analysis; and the size and complexity of the respective state economies.

The size and complexity of a state or metropolitan area’s economy determine its self-sufficiency. Larger states retain a greater share of this direct spending for building operations than smaller states. At the national level, the spillover effect adds to the magnitude of these secondary economic impacts. The degree to which the direct outlays are retained internally by the state is reflected in the respective state economic multipliers. The aggregate multipliers for office building operations are presented in Appendix E.

29

APPENDIX E Aggregate Economic Impact Multipliers for Building Operations

Alabama

Alabama 1.88 0.59 15.59

North Alabama 1.88 0.59 15.59

Alaska

Anchorage 1.64 0.54 11.90

Northwest Alaska 1.64 0.54 11.90

Arizona

Greater Phoenix* 1.94 0.63 15.19 1.97 0.63 15.10

Greater Tucson 1.94 0.63 15.19

Arkansas

Greater Little Rock 1.76 0.55 13.85

California

Inland Empire 2.01 0.64 13.08

Greater Los Angeles* 2.01 0.64 13.08 1.92 0.54 11.00

Oakland-East Bay* 2.01 0.64 13.08 1.75 0.47 9.50

Orange County 2.01 0.64 13.08

Sacramento 2.01 0.64 13.08

San Diego* 2.01 0.64 13.08 1.73 0.53 10.80

San Francisco* 2.01 0.64 13.08 1.75 0.47 9.50

Silicon Valley 2.01 0.64 13.08

Colorado

Southern Colorado 2.06 0.66 14.96

Denver Metro* 2.06 0.66 14.96 1.95 0.59 13.10

Connecticut

Greater Hartford 1.80 0.55 10.97

Southern Connecticut 1.80 0.55 10.97


Washington, D.C., MSA* 1.23 0.11 2.17 1.59 0.46 10.1

Florida

Ft. Lauderdale and the Palm Beaches 1.96 0.64 16.31

Greater Tampa Bay* 1.96 0.64 16.31 1.92 0.60 15.20

Jacksonville 1.96 0.64 16.31

Miami-Dade* 1.96 0.64 16.31 1.84 0.57 14.70

Orlando* 1.96 0.64 16.31 1.79 0.53 13.6

STATE MULTIPLIERS METRO MULTIPLIERS

State Output Earnings Jobs Output Earnings Jobs (per million) (per million)

30

Aggregate Economic Impact Multipliers for Building Operations APPENDIX E



Southwest Florida 1.96 0.64 16.31

Tallahassee 1.96 0.64 16.31

Georgia

Atlanta* 2.12 0.67 16.39 2.06 0.63 15.50

Hawaii

Hawaii 1.76 0.57 12.76

Idaho

Boise 1.71 0.55 14.62

Illinois

Chicago* 2.15 0.65 13.55 2.09 0.64 13.90

Peoria 2.15 0.65 13.55

Suburban Chicago 2.15 0.65 13.55

Indiana

Indianapolis* 1.94 0.59 13.62 1.95 0.60 13.80

Michiana 1.94 0.59 13.62

Iowa

Iowa 1.71 0.51 12.77

Kansas

Wichita 1.87 0.53 12.72

Kentucky

Kentucky 1.87 0.55 13.89

Louisiana

New Orleans 1.84 0.59 14.83

Shreveport 1.84 0.59 14.83

Maryland

Baltimore 1.80 0.53 11.34

Massachusetts

Boston* 1.84 0.56 11.47 1.72 0.46 9.80

Michigan

Metropolitan Detroit* 1.95 0.62 14.23 1.85 0.55 12.40

Mid-Michigan 1.95 0.62 14.23

West Michigan 1.95 0.62 14.23

31

APPENDIX E Aggregate Economic Impact Multipliers for Building Operations



Minnesota

Duluth 2.01 0.63 13.48

Minneapolis* 2.01 0.63 13.48 2.00 0.60 13.80

St. Paul* 2.01 0.63 13.48 2.00 0.60 13.80

Mississippi

Mississippi 1.75 0.55 14.42

Missouri

Kansas City 1.95 0.57 13.90

St. Louis* 1.95 0.57 13.90 1.98 0.61 13.2

Nebraska

Omaha 1.77 0.55 13.37

Nevada

Nevada 1.75 0.56 13.48

New Jersey

New Jersey 1.99 0.58 11.88

New Mexico

New Mexico 1.67 0.54 14.33

New York

Capital Region-Albany 1.78 0.51 10.44

Greater Buffalo 1.78 0.51 10.44

Central New York 1.78 0.51 10.44

Long Island 1.78 0.51 10.44

New York City* 1.78 0.51 10.44 1.84 0.55 11.50

Greater Rochester 1.78 0.51 10.44

Westchester 1.78 0.51 10.44

North Carolina

Greater Charlotte* 1.99 0.62 15.29 1.98 0.58 14.80

Raleigh-Durham* 1.99 0.62 15.29 1.76 0.49 12.00

Ohio

Akron 2.04 0.63 14.39

Columbus 2.04 0.63 14.39

Dayton 2.04 0.63 14.39

Greater Cincinnati 2.04 0.63 14.39

Greater Cleveland* 2.04 0.63 14.39 1.81 0.49 11.60

Toledo 2.04 0.63 14.39

32

Aggregate Economic Impact Multipliers for Building Operations APPENDIX E



Oklahoma

Oklahoma City 1.90 0.61 15.37

Tulsa 1.90 0.61 15.37

Oregon

Portland Metro* 1.83 0.56 12.94 1.92 0.60 13.10

Pennsylvania

Philadelphia* 2.04 0.61 13.13 1.98 0.59 12.40

Pittsburgh 2.04 0.61 13.13

Tennessee

Chattanooga 2.07 0.63 14.58

Knoxville 2.07 0.63 14.58

Memphis 2.07 0.63 14.58

Nashville* 2.07 0.63 14.58 2.02 0.62 14.50

Texas

Austin* 2.23 0.70 16.06 1.87 0.58 13.60

Corpus Christi 2.23 0.70 16.06

Greater Dallas* 2.23 0.70 16.06 2.11 0.65 15.10

Fort Worth* 2.23 0.70 16.06 2.11 0.65 15.10

Houston* 2.23 0.70 16.06 1.95 0.60 14.00

San Antonio 2.23 0.70 16.06

Utah

Utah 2.05 0.65 16.34

Washington

Seattle-King County* 1.88 0.59 12.81 1.77 0.53 11.70

South Puget Sound 1.88 0.59 12.81

Spokane 1.88 0.59 12.81

Wisconsin

Wisconsin 1.86 0.59 13.83

US Total 2.58 0.79 17.67

33

APPENDIX F The Yardi® Matrix Definition of Operating Expenditures

OPERATING EXPENSES

Payroll

Repairs & Maintenance Self-evident

Leasing Payroll not related to repairs and maintenance and management are assumed to be for leasing.

General On-site staff payroll, including property manager and assistants.

Marketing & Advertising Costs related to advertising the property and its units, such as listing-service fees, signage and newspaper advertisements.

Repairs & Maintenance

Cleaning Cleaning and related supply costs, as well as payments to third-party providers for these services and cleaning costs.

Roads & Grounds Parking lot, garage and landscaping maintenance costs, as well as payments to third-party providers for these services

General All other repair and maintenance costs, including electrical and mechanical repair, elevator maintenance, and general building maintenance.

Administrative

Security Costs for security monitoring, security system expenses, security contracts, etc.

General General administration costs, including office supplies, postage, uniforms, training, cell phones, banking fees, travel costs, permits and licenses.

Management Fees Expenses paid under a single cost/fee account for management, not further divisible into other categories (such as advertising, or leasing).

Utilities

Electric Expenses paid to electric utility companies.

Gas Expenses paid to gas utility companies.

Water/Sewer Expenses paid to city or municipality water/sewer providers.

34

BOMA Local Associations APPENDIX G

BOMA LOCAL PRIMARY MARKET LOCAL ASSOCIATION TERRITORY

ALABAMA

BOMA/Alabama Birmingham Counties – Autauga, Baldwin, Barbour, Bibb, Blount, Bullock, Butler, Calhoun, Chamber, Chilton, Choctaw, Clarke, Clay, Cleburne, Coffee, Conecuh, Coosa, Covington, Crenshaw, Dale, Dallas, Elmore, Escambia, Fayette, Geneva, Greene, Hale, Henry, Houston, Jefferson, Lamar, Lee, Lowdes, Macon, Marengo, Mobile, Monroe, Montgomery, Perry, Pickens, Pike, Randolph, Shelby, St. Clair, Sumpter, Talledaga, Tuscaloosa, Walker, Washington, Wilcox

BOMA/North Alabama Huntsville Alabama Counties – Cherokee, Cullman, Colbert, Dekalb, Franklin, Jackson, Lauderdale, Lawrence, Limestone, Madison, Marion, Marshall, Morgan, WinstonTennessee Counties – Franklin, Giles, Lawrence, Lincoln

ALASKA

BOMA/Anchorage Anchorage Entire State

ARIZONA

BOMA/Greater Phoenix Phoenix Maricopa County

BOMA/Greater Tucson Tucson Pima County

ARKANSAS

BOMA/Greater Little Rock Little Rock Pulaski County

BOMA/Northwest Arkansas Bentonville Counties – Benton, Boone, Carroll, Washington, Madison, Franklin, Crawford, Sebastian

CALIFORNIA

BOMA/Greater Los Angeles Los Angeles Los Angeles County

BOMA/Inland Empire Palm Springs Counties – Riverside, San Bernardino

BOMA/Oakland-East Bay Oakland Counties – Alameda, Contra Costa

BOMA/Orange County Orange County Counties – Orange

BOMA/Sacramento Sacramento Counties – Alpine, Amador, Butte, Colusa, El Dorado, Fresno, Glenn, Lassen, Madera, Mariposa, Merced, Nevada, Placer, Plumas, Sacramento, San Joaquin, Shasta, Sierra, Stanislaus, Sutter, Tehama, Tuolumne, Yolo, Yuba

BOMA/San Diego San Diego San Diego County

BOMA/San Francisco San Francisco Counties – San Mateo, Marin, Sonoma, San Francisco

BOMA/Silicon Valley San Jose Counties – Santa Clara, Santa Cruz, San Benito, Monterrey

COLORADO

BOMA/Denver Metro Denver Counties – Adams, Arapahoe, Boulder, Denver, Douglas, Jefferson

BOMA/Southern Colorado Colorado Springs Counties – El Paso, Pueblo, Teller

CONNECTICUT

BOMA/Greater Hartford Hartford Connecticut Counties – Hartford; Tolland; New Haven County municipalities of Meridien, Wallingford, and North Haven; Middlesex County municipality of CromwellMassachusetts Counties – Hampden

BOMA/Southern Connecticut

Fairfield, New Haven Counties – Fairfield County; New Haven County municipalities of Milford, West Haven, New Haven, and East Haven

35

APPENDIX G BOMA Local Associations


D.C. AREA

BOMA/Metropolitan Washington (AOBA)

Washington, D.C. District of Columbia; Maryland Counties – Montgomery, Prince George’sVirginia Counties – Arlington, Clarke, Culpepper, Fairfax, Fauquier, Frederick, Loudoun, Prince William, Shenandoah, Stafford, Rappahannock, WarrenVirginia Independent Cities – Alexandria, Fairfax, Falls Church

FLORIDA

BOMA/Ft. Lauderdale and the Palm Beaches

Fort Lauderdale Counties – Broward, Palm Beach, Martin

BOMA/Jacksonville Jacksonville Counties – Alachua, Baker, Bradford, Clay, Duval, Flagler, Marion, Nassau, Putnam, St. Johns, Union

BOMA/Miami-Dade Miami Counties – Dade, Monroe

BOMA/Orlando Orlando Counties – Orange, Osceola, Seminole, Brevard, Lake, Volusia

BOMA/Greater Tampa Bay Tampa Counties – Hillsborough, Polk, Pasco, Pinellas, Manatee, Sarasota

BOMA/Tallahassee Tallahassee Counties – Leon, Gadsen, Wakulla, Jefferson

GEORGIA

BOMA/Georgia Atlanta Entire State

HAWAII

BOMA/Hawaii Honolulu Entire State

IDAHO

BOMA/Boise Boise Idaho Counties – Arco, Ada, Adams, Blaine, Canyon, Cassia, Custer, Camas, Elmore, Gem, Gooding, Idaho, Minidoka, Owyhee, Payette, Twin Falls, Valley, WashingtonOregon Counties – Baker, Enterprise, Harper, Huntington, Joseph, Junaura, La Grande, Malheur, Nyssa, Ontario, Richland, Union, Unity, Wallowa

ILLINOIS

BOMA/Chicago Metropolitan Chicago – Central Business District

Chicago City (please note that this is just Chicago City—The rest of Cook County is in Suburban Chicago)

BOMA/Peoria Peoria Counties – Peoria, Woodford, Marshall, Stark, Fulton, Tazewell, Knox, Sangamon, Logan, McLean, Macon, LaSalle, Henry, Champaign

BOMA/Suburban Chicago Chicago – Suburban Counties – all of Cook County outside of Chicago City limits, DuPage, Will, Kankakee, Lake, Kane, Kendall, McHenry, DeKalb

INDIANA

BOMA/Indianapolis Indianapolis Counties – Bartholomew, Boone, Brown, Delaware, Grant, Hamilton, Hancock, Hendricks, Howard, Johnson, Madison, Marion, Monroe, Putnam, Shelby, Tippecanoe, Tipton

BOMA/Michiana South Bend Indiana Counties – St. Joseph, LaPorte, Porter, Starke, Marshall, Fulton, Kosciusko, Elkhart, LaGrange

Michigan Counties – Berrien, Cass, St. Joseph

IOWA

BOMA/Iowa Des Moines Entire State

36



KANSAS

BOMA/Wichita Wichita Counties – Cowley, Butler, Sedgwick, Greenwood, Dickinson, Reno, Barber, McPherson, Rice, Harvey, Sumner

KENTUCKY

BOMA/Kentucky Louisville Entire State, with the exception of Boone, Kenton, and Campbell Counties (these are in Cincinnati’s territory)

LOUISIANA

BOMA/Shreveport Shreveport Parishes – Caddo

MARYLAND

BOMA/Baltimore Baltimore Counties – Anne Arundel, Baltimore, Carroll, Frederick, Harford, HowardIndependent Cities – Baltimore City

MASSACHUSETTS

BOMA/Boston Boston Counties – Suffolk, Middlesex, Norfolk, Worcester, Plymouth, Bristol

MICHIGAN

BOMA/Metro Detroit Detroit Counties – Lapeer, Livingston, Macomb, Monroe, Oakland, St. Clair, Wayne, Washtenaw

BOMA/Mid-Michigan Lansing Counties – Clinton, Eaton, Gratiot, Ingham, Ionia, Mont Calm, Shiawassee

BOMA/West Michigan Grand Rapids Counties – Allegan, Kalamazoo, Kent, Muskegon, Ottawa

MINNESOTA

BOMA/Duluth Duluth Counties – St. Louis

BOMA/Greater Minneapolis Minneapolis Counties – Anoka, Hennepin

BOMA/St. Paul St. Paul Counties – Ramsey, Washington

MISSISSIPPI

BOMA/Mississippi Jackson Entire State

MISSOURI

BOMA/Kansas City Kansas City Missouri Counties – Cass, Clay, Jackson, Platte, RayKansas Counties – Johnson, Leavenworth, Wyandotte

BOMA/St. Louis St. Louis Missouri Counties – Crawford, Franklin, Gasconade, Iron, Jefferson, Lincoln, Madison, Montgomery, Pike, St. Charles, St. Francois, St. Genevieve, St. Louis, Warren, WashingtonIndependent Cities – St. LouisIllinois Counties – Bond, Calhoun, Clinton, Fayette, Greene, Jefferson, Jersey, Macoupin, Madison, Montgomery, Marion, Monroe, Montgomery, Perry, Randolph, St. Clair, Washington

NEBRASKA

BOMA/Omaha Omaha Counties – Douglas

NEVADA

BOMA/Nevada Las Vegas Entire State

NEW JERSEY

BOMA/New Jersey Newark Counties – Bergen, Essex, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, Union, Warren

37


NEW MEXICO

BOMA/New Mexico Albuquerque Entire State

NEW YORK

BOMA/Capital Region- Albany

Albany Counties – Albany, Columbia, Fulton, Greene, Montgomery, Rensselaer, Saratoga, Schenectady, Schoharie, Ulster, Warren, Washington

BOMA/Greater Buffalo Buffalo Counties – Allegany, Cattaraugus, Chautauqua, Erie, Niagara, Orleans, Wyoming

BOMA/Central New York Syracuse Counties – Cayuga, Cortland, Madison, Onondaga, Oswego, Seneca

BOMA/Greater Rochester Rochester Counties – Livingston, Monroe, Ontario

BOMA/Long Island Long Island Counties – Nassau, Suffolk

BOMA/New York New York City – All Boroughs

Counties – Bronx, Kings, New York, Queens, Richmond

BOMA/Westchester White Plains Counties – Westchester, Putnam, Dutchess, Rockland, Orange

NORTH CAROLINA

BOMA/Greater Charlotte Charlotte North Carolina Counties – Alexander, Alleghany, Ashe, Avery, Buncombe, Burke, Cabarrus, Caldwell, Catawba, Cherokee, Clay, Cleveland, Davie, Davidson, Forsyth, Gaston, Graham, Guilford, Haywood, Henderson, Iredell, Jackson, Lincoln, McDowell, Macon, Madison, Mecklenburg, Mitchell, Polk, Randolph, Rockingham, Rowan, Rutherford, Stanly, Stokes, Surry, Swain, Transylvania, Union, Watauga, Wilkes, Yadkin, YancySouth Carolina Counties – Entire State

BOMA/Raleigh-Durham Raleigh-Durham Counties – Alamance, Anson, Beaufort, Bertie, Bladen, Brunswick, Camden, Carteret, Caswell, Chatham, Chowan, Columbus, Craven, Cumberland, Currituck, Dare, Duplin, Durham, Edgecombe, Franklin, Gates, Granville, Greene, Halifax, Harnett, Hertford, Hoke, Hyde, Johnston, Jones, Lee, Lenoir, Martin, Montgomery, Moore, Nash, New Hanover, Northampton, Onslow, Orange, Pamlico, Pasquotank, Pender, Perquimans, Person, Pitt, Richmond, Robeson, Sampson, Scotland, Tyrrell, Vance, Wake, Warren, Washington, Wayne, Wilson

OHIO

BOMA/Akron Akron Counties – Summit, Stark, Portage, Wayne

BOMA/Greater Cincinnati Cincinnati Ohio Counties – Hamilton, Clermont, and the southern portions of Butler and Warren Counties in Ohio (the northern portions of both counties are in Dayton’s territory, with the north/south boundary being Route 63.)Kentucky Counties – Boone, Kenton, CampbellIndiana Counties – Dearborn, Franklin

BOMA/Greater Cleveland Cleveland Counties – Cuyahoga, Geauga, Lake, Lorain

BOMA/Columbus Columbus Counties – Champaign, Delaware, Fairfield, Franklin, Licking, Madison, Pickaway, Union

BOMA/Dayton Dayton Counties – Clark, Clinton, Darke, Greene, Miami, Montgomery, Preble, and the northern portions of Butler and Warren Counties (the southern portions of each county are in Greater Cincinnati’s territory, with the north/south boundary being Route 63)

BOMA/Toledo Toledo Counties – Hancock, Lucas, Wood

APPENDIX G BOMA Local Associations

38



OKLAHOMA

BOMA/Oklahoma City Oklahoma City Counties – Cleveland, Oklahoma

BOMA/Tulsa Tulsa Counties – Cherokee, Craig, Creek, Delaware, Mayes, Muskogee, Nowata, Okmulgee, Osage, Pawnee, Rogers, Tulsa, Wagoner, Washington

OREGON

BOMA/Oregon Portland Entire State

PENNSYLVANIA

BOMA/Philadelphia Philadelphia Pennsylvania Counties – Berks, Bucks, Chester, Delaware, Montgomery, PhiladelphiaDelaware Counties – New Castle, KentNew Jersey Counties – Atlantic, Burlington, Camden, Gloucester

BOMA/Pittsburgh Pittsburgh Counties – Allegheny, Armstrong, Beaver, Bedford, Butler, Cambria, Clarion, Erie, Greene, Fayette, Jefferson, Lawrence, Mercer, Somerset, Washington, WestmorelandWest Virginia Counties – Hancock, Brook, Ohio, Marshall

TENNESSEE

BOMA/Chattanooga Chattanooga Counties – Bledsoe, Bradley, Hamilton, McMinn, Meigs, Polk, Rhea, Sequatchie

BOMA/Knoxville Knoxville Counties – Anderson, Blount, Knox

BOMA/Memphis Memphis Counties – Shelby

BOMA/Nashville Nashville Counties – Cheatham, Davidson, Dickson, Robertson, Rutherford, Sumner, Williamson, Wilson

TEXAS

BOMA/Austin Austin Counties – Travis

BOMA/Corpus Christi Corpus Christi Counties – Nueces

BOMA/Greater Dallas Dallas Counties – Dallas, Collin, Grayson, Ellis, Kaufman, Van Zandt

BOMA/Fort Worth Fort Worth Counties – Tarrant, Denton, Wise, Lubbock, Wichita

BOMA/Houston Houston Counties – Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, Waller

BOMA/San Antonio San Antonio Counties – Bexar

UTAH

BOMA/Utah Salt Lake City Entire State

WASHINGTON

BOMA/Seattle-King County Seattle Counties – King

BOMA/Spokane Spokane Counties – Spokane

BOMA/South Puget Sound Tacoma Counties – Pierce, Thurston, Kitsap

WISCONSIN

BOMA/Wisconsin Milwaukee Entire State

39

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