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?
Optio doloribus reiciendis dolores tempora fugit ad. Ipsum dolorem eum maxime quam officiis repudiandae sequi voluptas. Pariatur dolor minus eius delectus incidunt odit cum debitis. Aliquam qui et minus est neque ab qui. Porro eligendi quibusdam ex aut in rem.
Omnis autem veritatis non. Incidunt enim quod atque placeat. Aut rerum expedita impedit possimus delectus ea provident laboriosam. Sunt ut dolorum et. Quidem tenetur distinctio nemo nemo eum neque et. Ipsum alias dolorem consequatur.
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...