Expense load is a general term for total operating expenses, often expressed per unit. LA multifamily typical expense load: $7,000–$12,000 per unit per year depending on submarket and building profile.
Expense load varies with building size (economies of scale), age (older buildings cost more to operate), and submarket (higher-cost areas have higher insurance, property tax, etc.). Modern urban LA multifamily typically runs $8,000–$11,000 per unit per year fully loaded with reserves.
LA multifamily expense loads have increased 2021–2026 on insurance particularly (wildfire risk reclassification raised rates substantially) and property tax (acquisition-triggered Prop 19 reassessments). 2026 underwriting reflects these higher loads.
From the Sterman LA Multifamily Glossary — defined the way a broker with $1.41 billion across 254 closed transactions actually uses these terms.
Michael Sterman, Senior Managing Director Investments, Marcus & Millichap.
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