Realty firm starts apartment expense survey for metro Oklahoma City
Price Edwards & Co. debuted a new annual report Friday to help apartment investors, operators and others judge property performance: a multifamily expense survey.
The firm’s multifamily investment team — brokers David Dirkschneider, team leader, and Michael Massad — surveyed 122 apartment properties comprising 16,000 units to create a basis for considering operating data.
The survey represents a fraction of the approximately 90,000 apartment units in the metro area, about 18 percent, but Dirkschneider said “the average expense information and trends are usually consistent with those experienced across the market.”
Combined with Price Edwards’ annual multifamily market survey, he said, the firm’s research yields “a comprehensive market overview analyzing the current state of the market in terms of overall rents, occupancies, sales, construction and now operating data.”
Both surveys, presented Friday at the Renaissance Waterford Hotel, are available at www.PriceEdwards.com. Friday’s lunch presentation was sponsored by Chicago Title Co.
“Although this is the first year for the Multifamily Expense Survey, we have completed an internal expense survey in previous years, therefore have some data to provide trends and metrics,” Dirkschneider said. “However, as this is the inaugural report, some of the trends and metrics will be lighter than expected in the reports to come.
“Further, in past internal expense surveys, the sample size of properties was smaller, therefore some of the actual trends and metrics may vary slightly compared to what the overall trends otherwise would have been. While we believe the data in this survey to be reliable and from accurate sources, this information should be taken into consideration with respect to the trends.”
He cautioned that the survey is meant to provide a benchmark for comparing operating data, not a standard for performance. The age of a property, type and quality of construction, level of deferred maintenance and other factors will have to be considered, he said.
Wood siding requires more maintenance than brick, for example.
“Likewise, a property that is master metered for utilities will have significantly higher utility costs than one that is individually metered with residents paying their own meter, he said.”