Shifts in High-Rise Budgets: 2026 BENCHMARK Report Insights

Understanding the 2026 BENCHMARK High-Rise Report

FirstService Residential, recognized as the premier property management company in North America, has recently released its 2026 BENCHMARK High-Rise Report. This annual analysis provides a comprehensive overview of operating costs and budget trends based on data from 1,500 high-rise buildings across 22 key markets in the U.S. and Canada. The insights gleaned from this report are invaluable for board members, property developers, and owners who are seeking to make informed budgeting decisions.

Key Findings of the Report

One of the most significant shifts highlighted in the report is the increasing emphasis on reserve funding. With the complexities of updated reserve studies, the aging of existing infrastructure, and rising construction expenses, property boards are compelled to increase their reserve contributions and engage in proactive capital planning. The necessity of these adjustments is evident as changing market conditions demand a more robust financial strategy.

In addition to reserve funding, the report indicates that insurance conditions are becoming more favorable in several regions. For example, properties in South Florida are enjoying notable reductions in insurance premiums. This economic relief is being redirected by many building managers towards enhancing their reserve funds, addressing deferred maintenance, and expanding staff resources.

The report offers a diligent examination of various cost drivers affecting high-rise operations. It includes assessments across several important categories such as elevator maintenance, fire safety systems, sustainability efforts, waste management protocols, and advancements in technology. The localized expense guides further assist stakeholders by providing detailed insights into cost trends across major metropolitan areas from Vancouver to Miami and from Chicago to San Francisco.

Supporting Informed Decision-Making

David Diestel, CEO of FirstService Residential, underscores the critical role that sound budgeting plays in property management. He states, "Board members are everyday heroes tasked with making complex decisions on behalf of their communities, and budgeting is where that responsibility often starts." The BENCHMARK High-Rise Report offers detailed data that enables boards to strategize effectively around their financial commitments while keeping residents' service expectations and community experiences at the forefront.

This year’s report also introduces The High-Rise Standard℠, a distinctive framework developed by FirstService Residential which aligns exceptional daily operations with enhanced service standards reflective of the hospitality industry. This new initiative was established in collaboration with ATELIER CX, the consulting division of Forbes Travel Guide. Notably, several properties managed by FirstService Residential have successfully achieved the prestigious VERIFIED™ Luxury Residences designation thanks to this initiative.

Robert Smith, President of the South Region at FirstService Residential, expresses the organization's commitment to improving residents' living experiences. He states, "The High-Rise Standard gives every property a consistent foundation built on excellence, while allowing boards and developers to shape an individual experience that reflects what makes their building unique."

Conclusion

In light of the findings from the 2026 BENCHMARK High-Rise Report, it is apparent that the evolving landscape of financial and operational management in high-rise properties necessitates a proactive approach to budgeting and decision-making. By leveraging detailed insights into reserve contributions, insurance trends, and various operational cost factors, community leaders can better navigate the complexities of property management, enhancing both the quality of life for residents and the financial health of their buildings.

For more information and to download a complimentary copy of the report, visit the FirstService Residential website.