Smooth Operators: The Annual Cost of Running a Building in New York City



own2012 026 Smooth Operators: The Annual Cost of Running a Building in New York CityBefore 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.

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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.