Would anyone happen to know what OPEX costs are for a stabilized ~200+ unit building is in the northeast? I beleive my general total opex is going to be around $12-13 Price per Gross Sf. Would anyone have a breakdown of the unit line items on either a price per door or PSF?
It would be new construction?
Reach out to a property management firm to help audit your expenses. Not sure what exact market you are in, where property taxes are going to move the needle up or down, but on 200 units I would expect the OPEX to run at about 35-38% of NOI.
suburban or urban - big difference garden vs mid rise (esp if conditioned corridors) - big difference high RE tax area or low RE tax area ....
in my experience 'per square foot' woudl be a very unusual way to ballpark it. but maybe that's a regional thing. someone in TX would look at per door.
percent of revenue is a terrible approach because it is way too 'tied to' whether your rents are high or low. too many newbies underwriting low-rent crap and thinking it can be run cheaply, but it's going to cost what it's giong to cost to run a palce whether rents are low or high ....
It is suburban, 30-40 min from NYC.
Agree with %of EGI, as that can run dependent on income level.
Any ballparks for per door?
Do you not have audits you can review?
Impossible to assume without knowing the product.
Most people in my industry just run off a standard % leakage which is fine for high level assumptions but not really a flyer once things get moving.
PSF op ex in my experience is usually used to describe office/retail. I've never heard of people doing that for multifamily. I would say what the guy above said, somewhere around 38- 40% depending on how old it is. If it's new (and stabilized) then much lower than that.
Yeah, it's multifamily, mid-high rise, new construction.
In the past, I've used $6.50 PSF for everything but the insurance, taxes and mgmt
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We're building a high rise in South Florida and after speaking to our management team that manages a bunch of similar product in the region, we predicted Op Ex at 34%. Which equates to about $14/PSF for net rentable square feet... Not sure that helps though.
In the same vein, is there an bifurcation of parking lot vs building costs. E.g. i would calculate GPSF for hard costs at $250 psf and parking lot at $60 PSF. I think I have to break them out as there is half the SF of parking as the total building and it is killing the development cost.
In our models, we always combine parking and regular building construction costs into one. We'll do say $300/SF for a high rise, but that is quoted from the rentable square feet.
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