BOMA Standard of Measurement

The Importance of Boma Standard of Measurement in Real Estate Valuations

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In the ever-evolving landscape of the real estate industry, precision and uniformity are paramount. Accurate measurements are the bedrock of sound real estate valuations, and this is where the BOMA Standard of Measurement comes into play. In this blog, we will delve into the significance of this standard and how it shapes real estate valuations.

Understanding BOMA Standard of Measurement

Historical Background

The BOMA Standard of Measurement, established by the Building Owners and Managers Association, has a rich historical background. It was first introduced to provide a consistent method for calculating rentable square footage in office buildings. Over time, it has evolved to encompass various property types, offering a standardized approach for measuring space.

Key Principles and Concepts

The fundamental ideas of BOMA standards separate rentable area from gross area. Making this distinction is essential to correctly estimating the amount of space that is for lease. This framework also includes common area and load factors to guarantee that tenants are only charged for the space they actually occupy. The uniformity of the language and procedures employed by BOMA standards facilitates real estate transactions.

Advantages of BOMA Standard in Real Estate Valuations

Consistency and Uniformity

The uniformity that the BOMA Standard of Measurement offers the real estate sector is among its greatest benefits. Properties measured with this standard follow a common methodology regardless of location. Investors, tenants, and real estate professionals all benefit from this consistency in terms of openness and trust.

Enhancing Market Transparency

Level playing fields are produced in the real estate market by standardization. When potential tenants and investors are aware that BOMA standards have been followed, they can compare properties with ease. Decision-making is made easier by this transparency, which also lessens the likelihood of disagreements over space measurements.

Reducing Disputes and Litigation

By providing a clear and standardized framework, BOMA standards significantly reduce disputes and potential litigation related to property measurements. Property owners and tenants can rely on these standardized measurements, reducing the risk of costly legal battles.

Impact on Investment Decision-Making

To make wise decisions, real estate investors depend on reliable data. The BOMA standards offer a solid basis for evaluating possible investments. Comparing and assessing various properties’ income potential is made simpler when valuations are based on standard measurements.

The Application of BOMA Standard

Commercial Real Estate

Commercial real estate, including office spaces and retail properties, widely adopts BOMA standards. This application ensures that tenants and property owners can trust the measurements and base their leasing decisions on a standardized, reliable foundation.

Office Space Leasing

Office spaces are particularly benefited by the BOMA Standard of Measurement. The clear differentiation between rentable and gross areas, along with standardized load factors, streamlines the leasing process and eliminates confusion.

Industrial and Retail Properties

Industrial and retail properties also find value in BOMA standards. These standards enable consistent and transparent measurements, which is essential in attracting tenants and investors to these types of properties.

Mixed-Use Developments

BOMA standards can also be advantageous for mixed-use developments, which comprise both commercial and residential areas. Accurate valuation of the various components of such developments is made possible by the standardization of measurements.

Challenges and Criticisms

Limitations of BOMA Standard

While the BOMA Standard of Measurement offers many advantages, it’s not without limitations. For instance, it may not be suitable for properties with unconventional layouts or unique characteristics. In such cases, adjustments may be necessary.

Instances where BOMA Standard may not be Appropriate

Certain property types, such as specialized manufacturing facilities, may not align with the BOMA standard’s methodology. It’s crucial to recognize when alternative approaches are more suitable.

Alternatives and Complementary Approaches

In some situations, a hybrid approach or complementary methods may be required. Real estate professionals should be aware of these alternatives to provide accurate measurements in all scenarios.

Staying Updated with BOMA Standards

Evolving Standards and Revisions

BOMA standards are not static; they evolve to address the changing needs of the real estate industry. Staying informed about these revisions is essential for real estate professionals to maintain accuracy in their valuations.

Resources for Real Estate Professionals

When applying BOMA standards, real estate professionals should look for training and resources to make sure they fully comprehend and apply the standards. Guidelines for BOMA measurements are provided by a number of organizations and courses.

Training and Certification Programs

For those wishing to specialize in BOMA standard measurements, certification programs are available. These programs can enhance your expertise and credibility in the real estate industry.

Conclusion

In the real estate valuations, precision and consistency are paramount. The BOMA Standard of Measurement plays a pivotal role in achieving these goals. By providing a uniform, transparent, and reliable method for measuring space, it bolsters trust among all stakeholders in the real estate industry. As the real estate landscape continues to evolve, adopting BOMA standards is a smart move for property owners, tenants, and investors. At Measure Up Corp, we recognize the importance of these standards in achieving precise real estate valuations, and we encourage their adoption to benefit the industry as a whole.

 

BOMA measurement standards

What is BOMA Measurement – Unraveling the Mystery of BOMA Measurement

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Accuracy is crucial in the complicated world of real estate and property management. One term commonly used in commercial real estate discussions is “BOMA measurement.” Understanding how to compute BOMA is crucial for accurate property valuation, fruitful lease negotiations, and maintaining transparency between landlords and tenants—even though it might seem like jargon to some. We set out to elucidate the meaning of BOMA and shed light on its real estate industry application today.

Understanding BOMA Measurement

The fundamental definition of BOMA is the uniform method for calculating the rentable square footage of commercial properties that have been approved by the Building Owners and Managers Association (BOMA). This system makes it possible to consistently calculate rent, handle leasing expenses, and value properties. BOMA standards were established more than a few decades ago and have evolved to keep up with the real estate industry’s constant change.

Critical Components of BOMA Measurement

Rentable area and gross area are the two main concepts in BOMA measurement. Common areas like lobbies, hallways, and restrooms are deducted from the rentable area, the entire area inside the property’s walls. This is referred to as the gross area. The careful distribution of common areas, ensuring accuracy and fairness, is crucial to BOMA. Because individual floor measurements account for usable space, exterior walls, and vertical penetrations, they are also essential.

BOMA Measurement Methods

The two critical ideas in BOMA are rentable area and gross area. The entire space inside the building’s walls is referred to as the rentable area, and common areas such as lobbies, hallways, and restrooms are subtracted from this amount. The gross area is the term used for this. One of the most critical aspects of BOMA is the exact and equitable distribution of common areas. Individual floor measurements are also crucial because they consider usable space, exterior walls, and vertical penetrations.

Importance of Accurate BOMA Measurement

Precise BOMA measurements affect many different aspects of the real estate market. Accurate measurements are the foundation for reasonable lease negotiations and rental agreements when dealing with real estate. Furthermore, BOMA play a significant role in property valuation and appraisal, guaranteeing that evaluations meet legal and market requirements. The transparency of BOMA is another factor that fosters trust between tenants and landlords.

Technology and BOMA Measurement

The unquestionable role of technology in BOMA measurements exists in today’s technologically advanced world. Laser measurement tools and Building Information Modeling (BIM) have transformed BOMA accuracy and efficiency. These tools promote trustworthiness in property evaluations by lowering the possibility of human error and improving measurement consistency.

BOMA Measurement Challenges and Best Practices

Boma measurements are more comprehensive than standard spaces; measuring areas such as atriums, balconies, and sloped ceilings can be difficult. To overcome these obstacles, thorough documentation—including comprehensive floor plans—is necessary to guarantee accuracy. Incorporating experts in surveying and architecture ensures adherence to BOMA standards even more.

Future Trends in BOMA Measurement

The trajectory of BOMA is changing as we look to the future. Combining machine learning with artificial intelligence (AI) has the potential to automate measurements, improving efficiency and accuracy. Furthermore, it is anticipated that the increasing focus on green spaces and sustainable design will impact BOMA measurement standards, reflecting the changing priorities of the real estate sector.

Conclusion

In the real estate industry, where each square foot is valuable, BOMA becomes essential for upholding accuracy, fairness, and transparency. By exploring its nuances, we can better understand the significance of BOMA in real estate appraisal, lease negotiations, and tenant satisfaction. To ensure future informed decision-making and equitable property dealings, Measure Up Corp. advises professionals to stay current on the constantly evolving BOMA measurement standards and practices.

Building Scanning Services

Things to Know about BOMA Measurement Services

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The BOMA (Building Owners and Managers Association) Standard Methods of Measurement are some instructions used by real estate experts. Real estate practitioners opt for BOMA measurement services to constantly measure and describe the areas of different types of properties.

What are BOMA Standards?

These are essential guides to space analysis. These standards are a necessary tool for analysis, research, measurement, data collection, and comparison. BOMA standards directly impact the value of an underlying property. This is where you can give extra value to your clients. Buildings that are not accurately measured according to the appropriate standard are sometimes underperforming. Hence, as real estate professionals, it’s your responsibility to work for your clients’ best interests, recognizing problems and offering solutions.

What is the Purpose of BOMA Measurement?

The prime purpose of BOMA measurement is to allow computation and communication on a comprehensible and clear basis. The BOMA Standard has been a generally approved strategy for measuring commercial real estate for several years. You must note that this standard can and must be utilized in assessing both old and new commercial buildings. Moreover, it is applicable to all types of construction and architectural designs.

Two Main Areas of the BOMA Measurement Method

1. Usable Area

The BOMA measurement strategy assesses the occupiable area of a commercial space or a floor. It is of the utmost interest to a tenant to assess the space given by the owner and decide how much space is needed to keep furniture. The total usable area on a multi-tenant floor usually changes over a building’s lifespan as corridors extend when floors are renovated.

You can use a conversion factor to transform usable areas into rentable areas. A floor’s usable area must be the same as the sum of all its usable areas.

2. Rentable Area

The BOMA measurement method assesses a tenant’s total office floor’s pro-rata portion. A building’s rentable area is permanent for the building’s lifespan. It is not impacted by transformations in corridor configuration and sizes. Hence, this method is advisable for assessing the whole income-generating area of a building.

How is BOMA Measurement Performed?

Generally, surveyors look around the whole commercial building when they come onsite to get a good feel for the layout. They may sketch the construction out, breaking it into segments if it’s a large construction. When measuring begins, they will work round-the-clock so they do not miss anything, taking some diagonal measurements to help with precision.

Hire Measure Up Corp. for BOMA Measurements

Measure Up Corp. offers BOMA measurement services for different types of properties for several reasons, including:

  • helping property managers measure NIA (Net Internal Area) and GIA (Gross Internal Area) to support rent reviews
  • assisting the decision-making procedure in the renovation and conversion of both commercial and domestic buildings
  • helping developers, architects, and construction engineers with the design and planning of change of use, leasing, expansions, rebuilding, space planning, and refurbishment

Do you want to discuss your next building measurement project? Contact us today and speak to our experts right away.