Question: An operating expense ratio is calculated by dividing a property's operating expenses by gross revenue 1) Why might one property sector's opex ratio be higher
An operating expense ratio is calculated by dividing a property's operating expenses by gross revenue
1) Why might one property sector's opex ratio be higher than others? For example, office opex ratios are far higher than industrial opex ratios.
2) If general inflation is expected to be 3%, but rental rate inflation is expected to be 2% based on historical trends, will the operating expense ratio rise or fall over time?
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
