RDM's 2014 Loss Factor Index [Infographic]

Real Data Management is pleased to introduce our 2014 Loss Factor Index, following The Real Estate Board of New York (REBNY) measurement standards.

As a leading provider of building re-measurement services for commercial real estate, RDM has tracked loss factor trends since 2002. This index represents our extensive building database and commercial real estate building analytics from 2002 to the present day.The 2014 Loss Factor Index is the latest release as part of RDM's Real Estate Analytics publications. For the latest publications, follow us on LinkedIn.

About Real Data Management:
Real Data Management is a nationwide provider of software and services for commercial landlords, brokers and property managers. RDM is considered the preeminent building measurement provider. Our Platform has provided the commercial real estate industry with a broad scope of services and technology that enable clients to more effectively market, manage and lease their portfolios. RDM’s commitment to educating the industry on building measurement methods led to the publication of two industry White Papers on national building measurement methods. RDM also provides on-site training seminars to brokers and industry leaders on the topic. www.rdm1.com.

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Use the Correct Method of Measurement to Maximize RSF

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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RDM Takes the Guess Work Out of Building Measurement

Real Data Management, a leading provider of services and software for the real estate industry, has released their second industry white paper - Methods of Building Measurement and National Trends.

“It is vital for the commercial real estate industry to have accurate measurements in order to ensure maximization of revenues, especially in the current market” said RDM’s CEO Peter Boritz. “Our new white paper aims to take the guess work out of building measurement.”

RDM’s in-house experts collaborated on this document which provides valuable information on BOMA and REBNY measurement standards, nationwide trends, and best practices.

Click to Download this White Paper:

About Real Data Management:
RDM offers a platform of services and software for the real estate industry.  They are committed to educating the Commercial Real Estate community on building measurement methods through onsite training workshops and published materials.  For more information, please visit www.rdm1.com.

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Measuring for Due Diligence

When assessing the value of a building on either the buyer/seller side in a sale many factors such as location, condition, and existing tenant base are considered. Another important aspect is total rentable square footage. The use of accurate sf numbers that follow REBNY or BOMA measurement standards is essential to maximize rentable income. It is also vital then during a due diligence phase to be certain that the rsf numbers being used to establish the ongoing value of the property are in fact correct.

We have performed due diligence surveys for many acquisitions on both the buyer/seller sides. Most recently we’ve provided services for the 222 Broadway, 1370 Broadway, and 4 NY Plaza transactions. Over the years our work has helped discover inconsistencies in rsf numbers presented to the potential buyer, added credibility to existing calculations, and uncovered additional value because the building was under measured. One way a building can be under measured in NYC, apart from being done incorrectly, is the loss factor applied to the REBNY usable space is below market average. Historically we’ve seen that buildings under measured grow anywhere from 3% to 10%. This growth translates to a significant amount of additional rentable income.

We suggest asking yourself the following question: Given the amount of time and money you spend to acquire/sell a building does it makes sense to take a chance on the existing rsf numbers?

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Understanding Building Re-Measurement

As a leading authority on building measurement methods, RDM has played a critical role in helping investors complete some of the biggest real estate transactions, and continues to serve as a valuable resource for the commercial real estate community.

See Also: RDM's Free White Paper - Building Measurement Methods


Whether it is a footage dispute in an existing property or due diligence that is required prior to acquiring a building, we provides understanding on how buildings get measured and a full platform of solutions for landlords, brokers and property managers.

For new investors, RDM’s Due Diligence report allows buyers and sellers to get a better understanding of the existing square footage conditions, the efficiency of each floor plate, the potential R.O.I. of the property as a whole and includes:

• Area analysis to better comprehend existing usable footages and loss factors
• Projections report depicting target rentable footages, potential growth and R.O.I.
• Building reconciliation on rentable areas to validate PROFORMA
• Creation or validation of floor plans to support marketing, management and leasing efforts
• FAR studies to determine existing air rights
• Efficiency report, a descriptive breakdown on how efficient a property is floor by floor

For more information on how RDM can help you with your building re-measurement needs, visit our website.

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