In today’s economy, it is important for commercial real estate professionals and owners to be sure their properties are properly measured in order to maximize the potential rentable footages across their portfolios. Calculating the rentable number is often a topic of debate as individual markets take different approaches on the correct method of measurement. This poses a problem for large real estate organizations with portfolios that span several geographic locations.See Also: RDM's Free White Paper - Methods of Building Measurement
The list below provides a brief synopsis of the different methods of measurement used to calculate commercial properties:
Building Owners and Managers Association (BOMA) is the most commonly used standard throughout major markets. This method defines usable footage as the space within the dominant surface of the inside face of the exterior wall minus all common space and major vertical penetrations.
Modified BOMA is used by landlords to either increase rentable footages or simplify/standardize a common loss/core factor throughout the property.
Real Estate Board of New York (REBNY) is the standard in New York City, which is the only major market that does not use a BOMA or Modified BOMA method of measurement. REBNY is a more aggressive method as usable space is measured to the outer face of the building exterior wall.
Inaccurate measurements are very common within commercial real estate and can lead to reduced revenues. All landlords, brokers and property managers should be aware of the current footage conditions within their properties as well as the potential to grow and fulfill the properties maximum value.
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