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FINANCIALS
2017 rental income was $666,727, and expenses were $126,499. Net operating income for 2017 was $517,000.
2018 monthly income is $57,365 as of June 1, 2018, with existing vacancy of 1%, or 1,250± square feet, in Building Five.
Annualized 2018 rental income is projected at $688,380 with net operating income for 2018 to be a projected increase of 2
to 3%, or in the range of $530,000.
2018 income by building is outlined below by both public and private tenants which shows total rental income split
50/50 between public and private tenants.
Overall blended rate for the entire complex is $.52 per square foot per month, or $6.20 per square foot on an annualized
basis.
Occupancy rates since 2014 have improved as a result of the recovering economy in Klamath Falls and Southern Oregon.
The seller has raised rents by only a modest level during the last 18 months, ranging from $25 to $300 per month or a
total of $1,285, on twenty-one rental units. There are fifteen units that have had no rent increase.
Copies of 2014 – 2017, and 2018 year-to-date financials are included in the Supplemental Information Package with Bid
Documents.
2018 Southtowne Commerce Center Monthly Income Summary by Building
Building
Year Built
Total SF
# of Units
# of Tenants
Monthly Income
1
Total Income/SF
Vacancy
Public
Private Public
Private
One
(#101-105)
1979 -1980
6,250
6
4
$2,335
$2,335 / $.37 SF
0
Two
(#106-107)
1980
13,354
2
1 (USGS)
1
$5,400
2
$3,100
$8,500 / $.63 SF
0
Three
(#200)
1981
12,415
1
1
(BLM)
$6,800
$6,800 / $.54 SF
0
Four
(#39-45)
1984
8,568
7
4
$2,875
$2,875 / $.34 SF
0
Five
(#1-37)
1977-1994
73,940
37
3
(BLM, FAA)
24
$16,780
3
$20,075
$36,855 / $.54 SF
1
(1,250 SF)
Total
114,527 SF
4
53
3
1
33
$28,980
$28,385
$57,365 / $.52
1,250 SF
1
Public Agency tenants are BLM, USGS and FAA. BLM and USGS lease space in buildings two, three, and five
2
Rental includes 15,150 SF fenced yard
3
Rental includes 16,780 SF fenced yard
4
Southtowne occupies total of 3,403 square feet with no rent paid (#101, 105R, 39, and 43)
2018 Southtowne Commerce Center Monthly Income Summary by Building
Building
Year Built
Total SF
# of Units
# of Tenants
Monthly Income
1
Total Income/SF
Vacancy
Public
Private Public
Private
One
(#101-105)
1979 -1980
6,250
6
4
$2,335
$2,335 / $.37 SF
0
Two
(#106-107)
1980
13,354
2
1 (USGS)
1
$5,400
2
$3,100
$8,500 / $.63 SF
0
Three
(#200)
1981
12,415
1
1
(BLM)
$6,800
$6,800 / $.54 SF
0
Four
(#39-45)
1984
8,568
7
4
$2,875
$2,875 / $.34 SF
0
Five
(#1-37)
1977-1994
73,940
37
3
(BLM, FAA)
24
$16,780
3
$20,075
$36,855 / $.54 SF
1
(1,250 SF)
Total
114,527 SF
4
53
3
1
33
$28,980
$28,385
$57,365 / $.52
1,250 SF
1
Public Agency tenants are BLM, USGS and FAA. BLM and USGS lease space in buildings two, three, and five
2
Rental includes 15,150 SF fenced yard
3
Rental includes 16,780 SF fenced yard
4
Southtowne occupies total of 3,403 square feet with no rent paid (#101, 105R, 39, and 43)
82.0%
84.5%
91.2%
97.3%
99.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
2014
2015
2016
2017
2018
Percentage
Year
2014 - 2018 Occupancy
26,250
11,065
16,054
18,215
41,175
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
less than5 years
5 to9 years
10 to14 years
15 to19 years
over20
Total SquareFeet Leased
Years / # of Tenants
Southtowne Commerce Center Tenant Tenure by Leased Space*
13
5
6
4
8
23%
10%
14%
16%
37%
*Based on11,759 SFexcludes sellers' occupancy
12
Sixty-seven percent of all space at Southtowne Commerce Center
has been leased by eighteen tenants for over ten years
Occupancy rates have improved from 82% in 2014, to 99% in
2018, due to economic recovery in Klamath Falls
82.0%
84.5%
91.2%
97.3%
99.0%
2014
2015
2016
2017
2018
23
26,250
1
11,065
14
16,054
1
18,215
37%
41,175
less than 5 years
3
5 to 9 years
10 to 14 years 15 to 19 years
4
over 20
8
1
Public Agency Tenants are BLM, USGA and FAA. BLM and USGS lease space in Buildings Two, Three and Five
ental includes 15,150 SF fenced yard
3
ental includes 16,780 SF fenced yard
4
Southtowne occupies total of 3,403 square fee with no rent paid (#101, 105R, 39, and 43)
1,759 SF excludes sellers’ occupancy