Smooth Operators: The Annual Cost of Running a Building in New York City
By Jotham Sederstrom September 20, 2012 7:15 am
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Before the typical Manhattan landlord even considers a new acquisition, his fleet of accountants, lawyers, risk managers and engineers weighs the high cost of operating in New York City.
Indeed, when even some midsize properties can rival the populations of a Midwestern town, it shouldn’t be a surprise that the day-to-day expenses of everything from window washing and elevator maintenance to office equipment, insurance and property taxes can add up faster than a New York minute.
Analysts at Cassidy Turley, a full-service commercial real estate services provider, averaged the operating costs of several dozen Midtown buildings–ranging in size from 250,000 square feet to more than 1 million square feet–and then shared their findings with us.
The result: Annual operating costs ranging from $5.7 million to well above $23 million that would cause even the most successful real estate titans to lose a little sleep. After the jump, an illustrated breakdown of the cost of owning in New York City today.
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