Owners and developers of office buildings can earn over 10 percent more from rents by measuring leasable areas using BOMA or IPMS standards, Colliers says

Building Owners and Managers Association (BOMA) or International Property Measurement Standard (IPMS) measurement standards for leasable areas can lead to an increase of the commercial value of office spaces, above 10 percent per month for owners, according to Colliers International’s consultants. The increase comes from the addition of leasable areas omitted from the initial architectural layouts. For example, in the case of an office building with a leasable area of ​​20,000 square meters, this increase translates to additional income from rents of above 300,000 euro per year.

The main benefit of the consultancy services is that developers and owners of office buildings can establish each project’s efficiency and profitability from the perspective of the Gross Leasable Areas of the building as a whole, as well as for each floor. In most cases, the increase of Gross Leasable Area is achieved and therefore Landlords can rent all the spaces that contributed to the cost of the development of the project, spaces which are sometimes omitted from the initial architectural layouts. At the same time, the risk of having an additional, non-competitive Add-on Factor of Building common areas is avoided.

“The measurement of leasable areas according to BOMA or IPMS standards highlights the professional approach that developers and owners of office spaces have in relation to tenants, removing any doubt related to subjectivity. At the same time, these measurements increase the commercial value of the projects. For a building of 20,000 square meters, a 5 percent higher leasable area means an additional income that can exceed one million euro over a five-year contract period, considering an EUR 14 average rent per square meter, In some cases we managed to add over 10 percent more leasable areas”, explains Ramona Savencu, Senior Associate Office Advisory at Colliers International.

Among companies for which Colliers has provided BOMA or IPMS measurement services are Skanska Property, Atenor, Anchor Grup, Green Gate Development, ONE, IULIUS and Portland Trust.