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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?
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