$.34 per square foot. How the money is spent is very interesting and revealing.

We conducted a survey of commercial landlords with class A property and it was very interesting to see not only how much money was being spent annually but where it was being spent. This chart excludes brokerage commissions and tenant improvements which were tracked separately as transaction costs.

Even excluding commissions “Broker Marketing” is still where the majority of spending occurs. Examples include events like open houses, lunches, sporting events, and deal closing events.

The second largest category is “exposure/advertising”. This includes magazine advertising and sponsored business events.

“Other marketing” includes marketing and events for existing tenants.

“Promotional material” includes flyers, floor plans, and space plans.

Remember, this excludes commissions. Brokerage commissions is 2x the entire chart. And tenant improvements and build out is 16x.

Online listings marketing, CRE databases, and research was included in “Subscriptions & Associations”.