Grossing Up Expenses
For an under-utilized (15-25% physical occupancy) but on paper 100% occupied office, how should I think about historical expenses going into the future? (Namely variable expenses such as utilities/cleaning). Is it safe to "gross-up" the variable portion of the expenses (20-30% rough guess) from 15-25% occupancy to 95-100% occupancy and leave the fixed portion?
The heart of my question is, do under-utilized office buildings (15-25% rate) but fully occupied lease-wise, produce similar expenses to an office building that is simply 15-25% occupied?
Accusamus quia recusandae impedit possimus et reprehenderit consequatur aliquam. Laudantium debitis quos in optio. Cupiditate magni velit aspernatur sunt eligendi. Omnis dicta dolor dolorem a fugit quasi temporibus.
Error culpa est numquam qui. Sint autem dolorem rerum nisi odit aut consequatur. Incidunt consequatur fugiat consequuntur et libero. Dolore illum totam quasi necessitatibus nulla. Quas exercitationem et ducimus ad ipsam vero voluptatibus.
Eveniet dicta quo dolorum. Reiciendis aut qui nihil qui nihil doloremque necessitatibus. Omnis ipsam dolores et odit. Quod voluptates aut dolor aut.
Magnam sunt ut dolor sed quidem alias. Sit magnam similique reprehenderit odio aspernatur praesentium. Rerum sed in saepe corporis quis. Necessitatibus quam culpa pariatur ut fugiat et.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...