Question: What BOMA standard should be used for measuring the floor area of an office building that is leased entirely to one single occupant?
Answer: BOMA’s published standards recognize that, in an office building that is leased entirely to a single occupant (as in build-to-suit development and sale-leaseback transactions), it is common to utilize exterior gross area or construction gross area instead of rentable area as the basis for leasing. BOMA Standards do not direct which measure of floor area to choose. That choice is generally made by the stakeholders to the lease agreement.
If the exterior gross area or construction gross area of a single tenant office building is chosen as the basis for leasing, BOMA recommends applying “Gross Areas of a Building, ANSI/BOMA Z65.3-2009”. If the rentable area of a single tenant office building is chosen as the basis for leasing, BOMA recommends applying “Office Buildings: Standard Methods of Measurement, ANSI/BOMA Z65.1-2010.
Note that benchmarking in the real estate industry is generally based upon rentable area, so even if the lease of a single tenant building is based upon its exterior gross area it may be necessary to also compute its rentable area in order to meaningfully compare its operating expenses with those of other similar office buildings using benchmarking publications like the BOMA Experience Exchange Report.
Floor Area Measurement Best Practices #1
Gensler’s Area Analysis team has contributed to a number of BOMA Best Practices, published on BOMA.org.
Approved February 4, 2014
The Floor Measurement Standards Committee of BOMA International has approved this Best Practice to provide guidance in addition to that included in the BOMA 2010 Office Standard. This Best Practice does not modify the BOMA 2010 Office Standard published as ANSI/BOMA Z65.1-2010 but may be considered for inclusion in future updates of that publication. View the original post and citations on boma.org
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