Keller-Koch Realtors LLC- El Paso Office Statistics, El Paso, TX

Keller-Koch Realtors LLC

Office Statistics, El Paso, TX

MARKET DATA

Class A

Class B

Inventory s. f.	CDB	Outside CBD	CDB	Outside CDB
Total	1,928,547	4,464,016	703,867	1,108,897
Vacant	646,522	650,852	448,500	325,500
Vacant Sublease	0	0	0	0
Under Construction	0	0	0	0
Substantial Rehab	0	0	0	0
Net Absorption	27,478	29,520	-9,484	-4,603
Vacancy Rate	33.5%	14.58%	63.72%	29.35%

RENTAL RATES $ / S.F.

Lowest $40.00 $50.00 $25.00 $30.00

Highest $75.00 $110.00 $40.00 $50.00

Weighted Average $50.00 $90.00 $35.00 $35.00

OPERATING EXPENSES $ / S.F.

Lowest $5.00 $5.00 $4.00 $4.00

Highest $7.50 $7.00 $5.00 $6.00

Weighted Average $7.00 $7.00 $4.50 $4.00

TAX EXPENSES $ / S.F.

Lowest $1.25 $1.25 $0.80 $1.05

Highest $1.65 $1.75 $1.15 $1.25

Weighted Average $1.50 $1.45 $1.05 $1.20

Prime Source Financing: Insurance Companies, Commercial Bankss

Mortgage Money Supply:

Ample

Utility Rates:

CBD $2.75 per s.f.

Outside CBD $2.50 per s.f.

Not Separately Metered

Parking Ratio:

CBD - 1 per 250 s.f.

Outside CBD - 1 per 400 s.f.

Rate of Return:

CAP Rate: 10%

IRR: 12%

Cumulative Discount Rate: None

Landlord Concessions: Parking, Lease Assumption, Addl. Interior Improvements

Operating Costs Escalation:

Determined by Base Year

Standard Work Letter:

$35.00 per s.f. typically based on dollars per square foot.

Leasing Activity Profile:

Major Activity: None

Minor Activity: Fortune 500 Firm, Legal / Accounting, Insurance, Business Services, Sales, Financing/Banking, Engineering/Architecture, Energy, Technology

OUTLOOK

Absorption Down 6-10%

Construction Down 5%

Vacancies Up 5%

Rental Rates Same

Landlord Concessions Same

2004 Review:

Demand was down, as predicted, which was a manifestation of the national rather local economy. All new construction was in the suburbs in the 4,000- 10,000 square feet range with no multistory buildings. With low interest rates, several tenants built their own buildings. The standard work letter is amortized over the lease term and is included in the lease rate. Operating expenses include taxes, insurance, maintenance and repair, trash removal, cleaning, management and utilities and is part of the rental rate.

2005 Forecast:

Small amount of speculative space is anticipated to be built. I think we'll see quite an increase in rehab activity, especially in the CBD.

Market isn't strong enough for much speculative building and majority of new construction will be for users.

Past Office Statistics (PDF Format)

2005 Office Statistics

2004 Office Statistics

2003 Office Statistics

2002 Office Statistics

2001 Office Statistics

2000 Office Statistics

1999 Office Statistics

Other Statistics (PDF Format)