All Square Feet Are Not Equal

When it comes to measuring office properties, there are a number of measurement methods which can be used to determine rentable square footage. Each method, if applied to the same office space, would provide a different calculation.

It is for this reason, owners and investors need to understand regional measurement standards in order to maximize their rentable square footage. Below, we provide a brief overview of these common methods of measurement.

BOMA Method

The most common method for measuring floor area in office buildings in the United States is the BOMA method.  This method is published by BOMA and is approved by ANSI (American National Standards Institute). The BOMA standard defines useable footage as the space within the dominant surface of the inside face of the exterior wall, minus all common space and major vertical penetrations. The BOMA standard was implemented in 1915 and has since undergone a number of revisions.

REBNY Method

In New York City, the measurement standard is The Real Estate Board of New York (REBNY) method. The REBNY standard is far more aggressive than BOMA, as usable space is measured to the outer face of the building exterior wall and the thickness of corridor walls are included as useable footage.  REBNY also allows a loss factor to be applied to usable areas.  This number is market driven and varies on both a full floor and multi-tenant basis. Whereas with BOMA the gross building area (GBA) exceeds the rentable area, with REBNY it is the opposite and rentable area is almost always greater.  GBA can be defined as the total floor area of the building measuring from the outer surface of exterior walls.

It is also important that investors and landlords are aware of the value of rentable square footage when selling or buying a property.  Prior to a disposition, sellers should study existing rentable areas to see if they are able to increase the square footage to maximize the sale price.  Likewise a potential buyer should validate the square footage the seller is representing.

About RDM
Real Data Management is a nationwide provider of services and software for the real estate industry. Our commitment to educating the industry on building measurement methods led to the publication of two industry White Papers on national building measurement methods. We also provide on-site training seminars to brokers and industry leaders on the topic. Learn more at 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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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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