Operating costs continued to concern property owners during H1 2024 as the total gross operating cost to income ratio remained close to an all-time high at 42.8% at the end of June 2024 – after reaching a peak of 43% in December 2023.
During the 12 months to June 2024, cost growth of 4.6% outstripped gross income growth of 3.5% which saw the overall gross cost to income ratio increase by 40 basis points.
Gross income was driven by a higher growth in tenant recoveries as opposed to growth in contractual base rentals which increased by 1.6% year-on-year while fixed recoveries increased by 2% and variable recoveries by 11.2%.
For more detailed information on SA’s operating costs during H1 2024, download a free copy of the latest report here (free to SAPOA members only).
How to access SAPOA’s reports:
- Visit www.sapoa.org.za.
- Login/register on SAPOA Members
- Click on ‘Reports’
- Click on ‘Free Reports’
- Click on ‘Office Vacancy Reports’
Not a SAPOA member? Sign up here.
