BOMA Measurements: In-Depth
BOMA Measurements are standards developed by the Building Owners and Managers Association (BOMA) to provide a consistent methodology for measuring the rentable square footage within commercial buildings, particularly office spaces. These measurements help ensure fair and clear terms for both landlords and tenants by defining what is included in the calculation of rental space.
Key Components:
- Office Building Gross Area: This includes the total square footage of the building.
- Floor Rentable Area: Calculated by taking the Gross Area and deducting areas that are not rentable like common areas, mechanical rooms, and un-leasable space.
- Usable Area: This is the tenant’s exclusive space within their office suite.
- Building Common Area: Includes common spaces such as lobbies, restrooms, and corridors that can be shared among tenants. This area is prorated and added to individual tenants’ usable areas to determine the rentable area.
- Vertical Penetrations: Shafts for elevators and vertical ducts are typically not included in tenant allocation and are subtracted from the total gross area to determine rentable space.
Examples:
-
Ben’s Accounting Firm rents an office:
- Total gross area of the building: 50,000 sq.ft.
- Building common area: 5,000 sq.ft. (lobbies, shared restrooms)
- Ben’s usable area: 2,000 sq.ft.
- Rentable area (including prorated common space allocation): 2,200 sq.ft.
-
Multi-Tenant Distribution:
- Tenant A: Usable area of 3,500 sq.ft.
- Tenant B: Usable area of 4,000 sq.ft.
- Common Area: 1,000 sq.ft.
- Tenant A’s prorated common space: 350 sq.ft. (based on the proportional shared space amongst all tenants)
- Tenant B’s prorated common space: 400 sq.ft.
Frequently Asked Questions:
Q1: What is the primary purpose of BOMA Measurements? A: To establish standardized practices that promote transparency and fairness in the calculation of leasable square footage within commercial buildings.
Q2: How often do BOMA standards get updated? A: BOMA standards are periodically reviewed and updated to reflect changes in building design, technology, and industry practices.
Q3: Are BOMA measurements obligatory for all commercial real estate transactions? A: While not legally required, BOMA standards are widely accepted and used to ensure uniformity and reliability in lease agreements.
Q4: Do BOMA standards apply only to office buildings? A: Although originally developed for office buildings, BOMA standards have expanded to include industrial, retail, and mixed-use properties.
Related Terms:
- Gross Lease: A lease agreement where the landlord covers property expenses, including taxes, insurance, and maintenance.
- Triple Net Lease (NNN): A lease agreement where the tenant pays base rent plus property taxes, insurance, and maintenance costs.
- Net Rentable Area: The portion of the building that can be rented to tenants, excluding areas used for public utilities and common spaces.
- Load Factor: A ratio of total building common areas to usable tenant spaces used to prorate the common area contributions among tenants.
Online Resources:
References:
- BOMA International Office Standard - ANSI/BOMA Z65.1 – 2017
- “A Comprehensive Guide to BOMA Floor Measurements” - Real Estate Journal
Suggested Books for Further Studies:
- “The BOMA International Office Standard: Method of Measuring Floor Area in Office Buildings - 2017” by BOMA
- “Commercial Real Estate Analysis and Investments” by David Geltner and Norman G. Miller
- “Investing in Income Properties: The Big Six Formula for Achieving Wealth in Real Estate” by Kenneth D. Rosen
Real Estate Basics: BOMA Measurements Fundamentals Quiz
### What is the purpose of BOMA Measurements?
- [x] To provide a standardized methodology for measuring rentable square footage.
- [ ] To estimate property market value.
- [ ] To create zoning regulations for buildings.
- [ ] To calculate property tax.
> **Explanation:** BOMA Measurements provide a standardized methodology for accurately measuring the rentable square footage within commercial buildings, ensuring fairness for both landlords and tenants.
### What is excluded from the floor rentable area?
- [ ] Tenant office spaces
- [ ] Conference rooms
- [x] Vertical penetrations like elevator shafts
- [ ] Common lobbies
> **Explanation:** Vertical penetrations such as elevator shafts and vertical ducts are excluded from the floor rentable area calculations as they are generally not allocated to any tenant.
### What constitutes the building common area?
- [ ] Tenant working spaces
- [x] Lobbies, restrooms, and corridors
- [ ] Private offices
- [ ] Basement storage rooms
> **Explanation:** The building common area includes shared spaces like lobbies, restrooms, and corridors which serve all tenants.
### How often are BOMA standards updated?
- [ ] Every 5 years
- [ ] Every 2 years
- [x] Periodically based on industry changes
- [ ] Annually
> **Explanation:** BOMA standards are reviewed and updated periodically to keep up with changes in building design, technology, and industry practices.
### Does BOMA measurement apply only to office buildings?
- [ ] Yes, only for office buildings.
- [ ] No, it includes residential buildings.
- [x] No, it includes various commercial properties.
- [ ] Yes, it is mandatory for residential buildings as well.
> **Explanation:** While BOMA Measurements were initially created for office buildings, they now include standards for a variety of commercial properties like industrial, retail, and mixed-use buildings.
### What is a Gross Lease?
- [ ] A lease where tenants pay only the base rent.
- [x] A lease where the landlord covers property expenses.
- [ ] A lease based on the gross area of property.
- [ ] A lease specific to industrial properties.
> **Explanation:** In a Gross Lease, the landlord covers the cost of property expenses including taxes, insurance, and maintenance.
### Who primarily uses BOMA Measurement standards?
- [ ] Residential home buyers.
- [ ] Municipal planning councils.
- [x] Commercial property landlords and tenants.
- [ ] Real estate brokers exclusively.
> **Explanation:** BOMA Measurement standards are primarily used by commercial property landlords and tenants to ensure accurate and fair square footage measurements.
### What is the Load Factor?
- [ ] The rate at which properties depreciate.
- [x] The ratio of common areas to tenant usable areas.
- [ ] The percentage of a building leased.
- [ ] The flat area of the roof.
> **Explanation:** The Load Factor is a ratio that determines the prorated share of common areas like lobbies and restrooms that each tenant is responsible for, based on their usage.
### What is Net Rentable Area?
- [ ] Total building area not including any exclusions.
- [x] The portion of the building available for rent excluding utilities and common spaces.
- [ ] The area excluding office interiors.
- [ ] Gross area minus the total site area.
> **Explanation:** Net Rentable Area is the part of the building available for rent, excluding mechanical rooms, common areas, and other un-rentable spaces.
### Are BOMA Measurement standards legally required in lease agreements?
- [ ] Yes, they must be referenced.
- [x] No, they are widely accepted but not legally obligatory.
- [ ] Only for properties over a certain size.
- [ ] Only for new buildings.
> **Explanation:** BOMA Measurement standards are not legally obligatory but are widely accepted as they provide a uniform and fair methodology in commercial lease agreements.
