A comparison of area measurement standards
Speaking from 10 years of experience, foreign BOMA, Tegova, GIF, RICS and IPMS standards and Polish PN-ISO 9836:1997, PN-70/B-02365 (archival – withdrawn) standards, along with the Act on Local Taxes and Charges are used for area measurement on the Polish market. However, the most commonly used standard for lease purposes is the BOMA standard (not only because using it results in the largest lease areas, but also because it uses the best method of calculating and presenting the calculations in Excel). Right after the BOMA standard in this matter is the Tegova standard. ~70% of areas for lease purposes are measured according to the BOMA standard, ~10% in accordance with the Tegova standard and ~10% according to the PN-ISO 9836:1997 standard. The other 5% of area measurements is divided between the GIF and RICS standards. In 2016 I observed a substantial increase of inquiries and measurements according to the GIF standard, which is connected to many German investors entering the Polish market. I think that the GIF standard’s percentages in the above will considerably increase in 2017. In turn, shopping centers are measured according to either the BOMA Retail standard or to a separate, non-normalized GLA method (more about the GLA measurement method in another article).
What are the differences between the standards?
To illustrate in the simplest way possible what the differences between area percentages according to different standards are, I described an office floor with about 550m2 of area below. For this comparison, a new office building, with predominantly partition walls, with construction walls located only around shafts, staircases and elevator shafts (a standard main part) is assumed. It is assumed that 10% of common areas have a height below 2.20m. The above analysis was based on a chosen example of a floor in an office building. The differences concerning other objects will take other values, i.e. they shouldn’t be calculated proportionally to other objects for comparison purposes. However, the values themselves clearly show regularity. The building add-on factor is not included in the values below.
% Differences between areas calculated according to different standards
Source: Own data based on measurements of 3.7 million m2 of area since 01.2008
* The BOMA standard was taken as 100%, as the standard resulting in the largest areas
How is it possible that the differences between areas of the same building can be as large as a few percent? The devil is in the details, and more specifically in selecting the best standard, so in measurement rules, and often also in their modifications. It needs to be emphasized that the above comparison shows differences between standards that have not been modified in any way! Modifications can change everything! Standards show methods of measuring and calculating the lease area, which are then used in rent calculations for the tenants and for easier building managing (development, redesigning, exploitation, utilities usage, etc.). In order to compare and get a closer look at it, the most important issues regarding the two standards in this area, that are the most popular and profitable for the lessors, BOMA and Tegova, are covered below.
The BOMA and Tegova standards
In the BOMA standard, we measure to the dominant considered in the cross-section of the given storey, with the outer facade measured from the inside (we consider/analyze meter by meter, you could say), and in the Tegova standard, we measure to a wall or a window (the rule of domination on the whole facade plane). The height at which the measurements are performed in the BOMA standard is the height on the level of the dominant, and in the Tegova standard it’s 1.5m. Support columns are included in the lease area in the BOMA standard (it doesn’t matter what area they have), and in the Tegova standard only those below 1m2 are included in the lease area. According to the BOMA standard, construction walls within a tenant’s area are included in the lease area in which they are located, or in the area that dominates over the neighboring area. However, in the Tegova standard, construction walls are not included in the area. Those walls usually have areas larger than 1m2, and such walls are not included in the lease area according to the Tegova standard. In cases of partition walls, in both standards they’re wholly or halfway included in the tenant’s area, or in the area group which they are a part of. The aspect of including exterior walls is spoken about only in the BOMA standard, in which case they’re measured to the main facade on the ground floor level if it’s a retail space. The standards also differ in the matter of the add-on factor. In the BOMA standard it’s explained in a clear way – a detailed method of the procedure and calculating is given, and in the Tegova standard there isn’t a word about it. However, this factor can be used (it’s practiced on the Polish market) by taking an example from BOMA. However, you shouldn’t include technical rooms in the factor calculations (Tegova excludes them from the report). You need to remember about including information about such changes in reports with this modification and in lease agreements. Regarding area reduction, the BOMA standard only obliges to give information about areas with height below 1.524m. Area reduction depending on the lowered height does not appear in the Tegova standard – we give areas of rooms with height below 1.5m. Further elaboration on the BOMA and Tegova standards is included in separate articles.
Think about the standard selection
Measuring one building according to a few standards is also practiced
Summary
After following the above guidelines, it turns out that the biggest areas for lease purposes are a result of using the BOMA standard (mainly thanks to the building and floor add-on factors), right after that it’s the Tegova standard, then PN-ISO, the Act on Local Taxes and Charges, RICS and GIF. Please note that by introducing 3 modifications to the GIF standard we can obtain the same areas as in the BOMA standard. And by introducing 3 modifications to the Tegova standard we will get areas larger than in the BOMA standard! (the floor and building add-on factor are calculated the same as in BOMA, building technical rooms are included in the building add-on factor calculations, construction walls within a tenant’s area are included in the lease area). That’s why I think you shouldn’t just focus on the original form of standards, but instead wisely choose a standard and modify it accordingly, keeping in mind your property portfolio. All that so the area gets rented and is easy to manage for years.
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Author: Adrian Hołub
Translation: Julia Pająk
Contact
Monika Hołub
Co-owner Polish Geodetic Group
szkolenia@geodezyjny.com
Tel.: +48 785 041 07
Adrian Hołub
Co-owner Polish Geodetic Group
adrian.holub@geodezyjny.com
Tel.: +48 608 577 042
