 |
|
| NATIONAL ASSOCIATION OF REALTORS® | Videos | Store | Library | Directories | Need Help? |
| Register | Login | My Account | NRDS |
Interpretations - Income/Expense Analysis®: Shopping Centers
A variety of charts and graphs are contained in this edition of the Analysis. However, the vast majority share a basic format which will be described and explained in the following paragraphs.
The Chart of Accounts
The various line-items are listed in a column on the left side of each data page. A number of abbreviations were adopted because of space limitations. A few of these are clarified below. For complete definitions of the terms used and the various income and expense categories, the reader should refer to the Appendix.
Abbreviations
For each of the following abbreviations, the term or expression abbreviated follows in italics.
GLA: Gross Leasable Area
AAO: Average Actual Occupancy
GROSS MINIMUM: Gross Potential Minimum Rent
ACTUAL MINIMUM: Actual Minimum Rent
NON-ENCL CA SVS: Non-Enclosed Common Area Services
FOOD CT: Food Court
R/E TAX RCVRY: Real Estate Tax Recovery
TEMP TENANT INC: Temporary Tenant Income
GRND LEASE; G/L: Ground Lease
B/L: Building Lease
BALANCE: Balance of Shopping Center
EXPNS: Expenses
MAINT & REPAIR:; M&R: Maintenance and Repair
HVAC: Heating, Ventilation and Air Conditioning
PAINT/DECORATE: Painting and Decorating
COMB ELEC: Combination Electricity
UTILS: Utilities
ADMIN FEE: Administration Fee
PRKG LOT/SDWLK: Parking Lot/Sidewalk
OTHER TAX/FEES: Other taxes, Fees and Permits
PROF SRVCS: Professional Services
E/I RATIO: Expenses over Income Ratio
CAM: Common Area Maintenance
The Floor Area Categories
The Medians and ranges are calculated in dollars per square foot for each of the two floor area listed for income: Total Potential GLA (Gross Leasable Area) and Total Average Actual Occupancy. For expenses, in addition to the above mentioned categories, medians are listed for Balance (of Shopping Center) Total Potential GLA and Balance (of Shopping Center) Average Actual Occupancy. Definitions of these categories are found in the Appendix.
The Line-Item Sample
All of the projects did not report a dollar figure for each line-item. The figures in Centers column identify the number of projects in the sample reporting floor area and a dollar figure for that line-item. This is especially important in areas where the reader should pay particular attention to the number of projects used to calculate each line.
If the line-item sample is very small (less than five buildings), care should be taken in interpreting the results. The next figure to the right, in the Square Feet column (abbreviated Sq. Ft.), gives the total number of square feet in the line-item sample, in multiples of 10,000 square feet.
The Calculations
The Median
The median of a set of measurements is defined as the middle measurement, identified after the measurements have been arranged in order of magnitude. As an example, if there are 13 centers reporting the following values for Real Estate Taxes in dollars per square foot-
0.72 0.76 0.88 0.89 0.94 0.97 0.99 MED
1.05 1.07 1.10 1.13 1.24 1.26-the middle value of 0.99 is the median. If there is an even number of values reported, the higher of the two values has been chosen as the median. For purposes of comparison, the calculated average for this distribution is 1.00, very near the chosen median.
The Range
In addition to the median, the "interquartile range" is reported in terms of a Low and High value. After the set of measurements has been arranged in order of magnitude, the Low and High values are chosen so that the bottom 25 percent of the sample falls below the Low and the top 25 percent of the sample lies about the High. Using the same example, for the following values-
0.72 0.76 0.88 0.89 LOW 0.94 0.97 0.99
1.05 1.07 1.10 HIGH 1.13 1.24 1.26-the Low value is 0.89 and the High value is 1.10.
In interpreting the data as it appears in this publication for a particular line-item, such as Liability Insurance, the value that best describes the sample is the median (Med) with the central 50 percent of the values falling between the Low and High.
Subtotal Calculations
Due to the nature of calculating the median and the variability of line-item samples as discussed in the previous section, line-item medians will not add up to the medians obtained for subtotals or totals.
In the following example, the median subtotal is not the sum of the three starred figures which appear above it. Rather, the median subtotal is calculated independently.
| Bldg Bldg Bldg Bldg Bldg Bldg Bldg A B C D E F G | |||||||
| Grounds Maint | .02 | .03 | .04 | *.05 | -- | .05 | .06 |
| Maint & Repair | .06 | .07 | .07 | *.08 | .09 | .09 | .12 |
| Painting/Decor | .02 | -- | .03 | .03 | *.08 | .08 | .09 |
| SUBTOTAL .10 .10 .14 * .16 .17 .22 .27 | |||||||
The median for each line-item is starred. A dash indicates that particular line-item was not reported by that building.
Occupancy Level
The square footage occupancy level and tenant occupancy levels are calculated as percentages of Gross Leasable Area.
Other Remarks
The operating expenses in the publication do not reflect such items as mortgage interest, amortization, depreciation, income taxes, or capital expenditure for alterations, improvements or remodeling of occupied or public areas.
 |
  |
 Copyright NATIONAL ASSOCIATION OF REALTORS® Headquarters: 430 North Michigan Avenue, Chicago, IL. 60611-4087 DC Office: 500 New Jersey Avenue, NW, Washington, DC 20001-2020 1-800-874-6500 Terms of Use | Privacy Policy | REALTOR.com | Contact NAR | Site Map |