6/20/2011

The New 2010 BOMA

Office Measurement
Standard (short version)
William B. Tracy, MBA, NCARB

Copyrighted Materials
This Presentation is protected by US and
International copyright laws. Reproduction,
distribution, display and use of the presentation
without written permission of BOMA International
is prohibited
Copyright © 2010 by BOMA International
All rights reserved

Disclaimer: This presentation must not be used in lieu of the full

BOMA 2010 Office Measurement Standard and must not be relied
upon as a full and accurate interpretation of that standard.

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Why Measure?
The Three Most Important
Things in Real Estate?
1. Location
2. Location
3. Square Footage

With apologies to William

Zeckindorf, you can have the
best location in the world, but if
you have no square footage,
you have nothing!
Square footage is the
currency of real estate.

Why Measure?
Square Footage = Value

Three Basic Appraisal

Methods for Property
Value:
1. Revenue Stream: NPV
of ($/RSF X RSF)
2. Comparable sales:
$/GSF X GSF
3. Replacement Cost:
$/GSF X GSF

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Why Measure?
> Due Diligence:
If buyers due diligence
measurement shows
more RSF, you have left
money on the table.
It buyers due diligence
measurement shows less
RSF, your sales
negotiation may be
challenging!

Today‟s Agenda
> Choosing among the BOMA family of standards
> The New 2010 Office Standard: What‟s New &
Why
10 drivers of change
14 new terms
10 new measurement concepts
> Distinguish and choose between Methods A & B
> Overview of the 5-Step Method

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The BOMA Family of Standards

1. Office Buildings
ANSI/BOMA Z65.1-2010
2. Industrial Buildings
ANSI/BOMA Z65.2-2009
3. Gross Areas of a Building
ANSI/BOMA Z65.3-2009
4. Multi-unit Residential Buildings
ANSI/BOMA Z65.4 - 2010
5. Retail Buildings
ANSI/BOMA Z65.5 - 2010
6. Mixed-use Buildings
Works in conjunction with office, industrial, retail & residential stds.

All BOMA standards measure buildings only.

Today‟s Agenda
> Choosing among the BOMA family of standards
> The New 2010 Office Standard: What‟s New &
Why
10 drivers of change
14 new terms
10 new measurement concepts
> Distinguish and choose between Methods A & B
> Brief overview of the 5-Step Method

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The “Old” 1996 BOMA Standard

> June 7, 1996
> Voluntary
Not a law
BOMA was “secretariat”
Published as ANSI/BOMA
Z65.1-1996
> Evolved from 1915
standard
Revaluated every 10 years
Adopted current real estate
practices
Whole building measure

Global Summary of Areas

*** 1996 Standard ***

Page 27
Chart area only

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BOMA-10 Organization
> 69 pages in 2 sections
39 pages of text
30 pages of illustrations
> Text Sections
1 – Scope, application & use
2 – Read me first!
3 – Overview of method
4 – Measurement methods (in detail)
5 – Definitions
6 – Measurement concepts (!)
7 – Appendix
> Illustrations
Details & concepts
Five floors of an office building
Global Summary of Areas
worksheets

BOMA-10 Document Format

> Use in electronic format
Locklizard DRM requires own free reader (like PDF)
Tied to the computer used to install the file
Hyperlinks tie all definitions & illustrations
Enlarge illustrations to see details
> Use in printed format
Print up to 3 copies
Print text in monochrome, illustrations in color
Bind text & illustrations separately
Reference side-by-side

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10 Drivers for BOMA-10

1. IFMA/BOMA Unified
Approach
Published in 2007
OSCRE Terminology
Taxonomy
Clarifications
Foundation for future BOMA
Standards

10 Drivers for BOMA-10

1. IFMA/BOMA Uniform Approach
2. BOMA gross area measurement standard
3. Single load factor for all floors of a building
4. Stable rentable areas
5. Tenant storage leased on usable basis
6. Building design features in warm climates
7. Dealing with high R/U ratios
8. No separate Q&A document
9. Increased clarity & comprehensiveness
10.Use color & new publishing technology

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BOMA-10 Terminology - 1
BOMA-96 Term BOMA-10 Term
> Tenant > Occupant*
> Office area > Occupant area*
> Store area > Occupant Area
> Common Area (1) > Service Area*
Building Common Area Building Service Area
Floor Common Area Floor Service Area
> Common Area (2) > Amenity Area*
Building Common Area Building Amenity Area
Floor Common Area Floor Amenity Area

BOMA-10 Terminology - 2
BOMA-96 Term BOMA-10 Term
> Usable Area > Usable Area
Office Area Occupant Area
Store Area Building Amenity Area
Building Common Area
> Gross Measured Area > Interior Gross Area*
> Dominant Portion > IGA Boundary*
> Major Vertical > Major vertical
Penetration (1) Penetration
> Major vertical > Void*
Penetration (2)
> Private stair > Occupant void*

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BOMA-10 Terminology - 3
BOMA-96 Term BOMA-10 Term
> Floor Rentable Area > Preliminary Floor Area*
> Basic Rentable Area > Occupant + Allocated
Area*
> Floor R/U Ratio > R/U Ratio
> Building R/U Ratio > R/O Ratio*
> Combined R/U Ratio > Load Factor*
> Ground Level Street > Public Pedestrian
Frontage Thoroughfare*
> Gross Building Area > Exterior Gross Area**

10 New Concepts in BOMA-10

1. External circulation
2. Enclosure
3. Enclosure limit
4. Property line
5. Vault space (disclosure)
6. Connectors (disclosure)
7. Restricted headroom (disclosure)
8. Mezzanine (disclosure)
9. Occupant storage
10.Capped rentable area

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1 - External Circulation

<ILLUSTRATION 6>

2 - Enclosure
> Separation between “inside” & “outside”
Determines IGA boundary
> Appropriate to local climate
Climate: In warm climates, the degree of enclosure necessary for
habitation is less than in temperate or cold climates:
Puerto Rico
St. Thomas
Palm Springs, AZ.
> Appropriate to occupancy
Some space do not require “room temperature”
Loading Docks
Mechanical floors
Structured parking
> Roof is absolute requirement

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3 - Enclosure Limit
> @ PP Thoroughfare
Colonnades
> Right to enclose
Actual enclosure irrelevant
Defines IGA Boundary
+ Occupant areas
+ Service areas
> Established by
Lease or agreement
Statutory constraint
Building feature

4 - Property Line
> Legal Boundary
Parcel of land
> If within building,
it is an IGA *** GRAMS ***
Boundary <ILLUSTRATION 7.1>
Exception: Vault Space BOTTOM RIGHT
PART ONLY
> Connectors
Divided at P/L

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5 - Vault Space
> Below grade
Contiguous to basement
Under sidewalk/alley
> Outside P/L
Only IGA that crosses
property line
> Occupant or
Service area
Transformer vault
> Common in cities
Rare in suburbs
> Disclose!

6 - Connector
> Between two
buildings
Enclosed bridge
Enclosed walkway
Enclosed tunnel
> Part of a building?
Primarily served
Agreement
Property line <ILLUSTRATION 2B>
Benefit
> Disclose!

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7 - Restricted Headroom
> Less than min.
ceiling height in
IBC
7’-6” horizontal ceiling
5’-0” sloped ceiling
> Exclusion
Sloped exterior walls
Less than 15º
<ILLUSTRATION 1F>
> Include in
Rentable Area
> Disclose

8 - Mezzanines
> Between floors
> Limited size
1/3 area of floor below
Include in area of floor
below
> Three Types
Temporary
(Don’t measure)
Permanent
(Always measure)
Unclassified
(Measure & disclose)

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9 - Occupant storage
> Not on occupant
floor level
Basement / parking
Mechanical floor
> Unsuitable for
office use
Low Lighting/Power
No Finishes
No HVAC
> Lease as storage
Usable basis (no load)
Account for separately

10 - Capped Rentable Area

> Method of dealing with a high load factor
Consistent method – preserves true rentable area
Do not “leave out” any areas to reduce load factor
Lost area permanently reduces property value.
> Three steps
1. Establish Market Load Factor
2. Establish Capped Load Factor by floor:
If Actual LF > Market LF, use Market Load Factor
If Market LF > Actual LF, use Actual Load Factor
3. Capped Rentable Area = Occupant Area X Capped Load
Factor
> Market Load Factor set by building ownership
Analyze competitive properties in local market
Decision is sole discretion of building ownership
Will result in loss of rentable area

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BOMA-10 v BOMA-96
> Total rentable area generally same as BOMA-96
External circulation may increase rentable area in some buildings
> Rentable area of tenants more stable over time.
> Building service areas include full wall thickness
Small reduction in occupant area & increase load factors
> Occupant storage areas separate from RSF
> Capability to cap rentable area if needed
> Major vertical penetration criteria
1 square foot (0.1 square meter)
> Disclosed four kinds of space
> Enclosure limits (other than building line)
> Parking measured
> Optional Method B – Single Load Factor

Why switch from

BOMA-96 to BOMA 2010?
> Lower likelihood of square footage disputes
More and better illustrations
More defined terms with discussion
Clearer methodology – charts & spreadsheets
No separate Q&A document, fewer ambiguities

> New features

Increased stability of rentable areas
External circulation ($)
Tenant storage
Capped rentable areas
Optional Single Load Factor method

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Why not switch from

BOMA-96 to BOMA-10?
> Tenant rentable areas will change
Total rentable area of most buildings will not change
Rentable areas of individual floors & tenants will vary up & down

> New concepts may be unfamiliar to tenants &

consultants.
BOMA offers training classes!

Today‟s Agenda
> Choosing among the BOMA family of standards
> The New 2010 Office Standard: What‟s New &
Why
10 drivers of change
14 new terms
10 new measurement concepts
> Distinguish and Choose between Methods A & B
> Overview of the 5-Step Method

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2 Methods in BOMA-10
> Both methods use identical interior gross area
> Both methods use same space classifications
Major vertical penetrations
Occupant areas
Service and amenity areas
Occupant storage
Parking
Base building circulation required for Method B only
> Both methods measure space identically
The same boundaries for all classes of space
> Both methods produce identical rentable areas
for the building as a whole
Distribution of rentable area between floors will be different

Method A “Legacy”
> Calculations work like BOMA-96
Uses both Floor R/U factor and Building R/O factor
Load factors vary by floor
> Utilizes actual corridors on multi-tenant floors
Can be field measured without plans
Less need for CAD to document base building circulation
Likely less need for extended circulation
> Rentable areas of individual tenants will vary from
BOMA-96, but much less than Method B.
> May be only option for some office buildings
Base building circulation can be difficult in office buildings with
dispersed core elements and certain design features

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Method B “Single Load Factor”

> Same Building Total Rentable Area as Method A
> Re-allocates the Rentable Area of a building so
that the Load Factor is the same on all floors.
Rentable areas of individual tenants will vary from BOMA-96 mor
than Method A.
> Requires base building circulation on every floor
Base building circulation must be documented on paper or CAD
Cannot be field measured
> Rentable area is calculated using the Single Load
Factor applied to the multi-tenant occupant area
of every floor
Since a full floor tenant actually can use the area in base building
circulation, a “full floor equivalent factor” is calculated that is
comparable to a full-floor load factor.

Method B
Generally, how it works:
> Determine Building Total Rentable Area
Total of Preliminary Floor Area for all floors
(Interior Gross Area less Major Vertical Penetrations)
> Determine Building Total Occupant Area
Assume multi-tenant corridor on every floor
(Base Building Circulation)
> Determine Single Load Factor
Building Total Rentable Area divided by
Building Total Occupant Area
> Determine Rentable Area of each floor
Single Load Factor times Occupant Area of each floor
Same Rentable Area for single tenant occupancy as for multiple
tenants on the floor.

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Base Building Circulation

> Minimum corridor on multi-tenant floor to access
Occupant areas, Egress stairs, elevators
Restrooms, janitor’s closets & water coolers
Life safety equipment & refuge areas
Building service and amenity areas
> Width set by building design standard
Typically 5’ to 6’ wide (not 44” – code minimum)
Goal is to be same width as actual corridors on most floors
> Used for Method B (Single Load Factor) only
Must document boundaries on CAD or paper
Can’t field verify
> Can be difficult to determine in some buildings
May suggest use of Method A.

Base Building Circulation

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Base Building Circulation

Extended Circulation
> On multi-tenant floors, when Base Building
Circulation has to be extended to provide access
or egress to an Occupant.
> Corridor space not allocated by R/U ratio
In addition to Base Building Circulation (Method B)
In addition to existing corridor if leases are signed on floor (Method
A)
> Included in Occupant Area of those requiring it
One occupant – part of their usable area
Several occupants – pro-rate based upon usable area
> Excludes door set-backs

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Extended Circulation

Extended Circulation

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Method A & B
> Do not mix „n‟ match!
Must pick either Method A or Method B to apply to entire building
> Clearly identify which method is applied
In leases
In any presentation of rentable area:
Marketing materials
Pro-formas
Appraisals
> Good way to cite the standard
“ANSI/BOMA Z65.1-2010”
> Bad ways to cite the standard
The BOMA Standard (which one?)
Modified BOMA (oh, come on, now!)

Today‟s Agenda
> Choosing among the BOMA family of standards
> The New 2010 Office Standard: What‟s New &
Why
10 drivers of change
14 new terms
10 new measurement concepts
> Distinguish and choose between Methods A & B
> Overview of the 5-step method

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The 5-Step Method

1. Measure interior gross area (IGA)
2. Classify all IGA space
Major vertical penetrations Occupant areas
Building service areas Building amenity areas
Floor service areas Floor amenity areas
Occupant Storage Base building circulation*
* Method B only
Parking
3. For each class of space, determine boundary lines
4. Calculate the areas of all classes of space
Global summary of areas calculates rentable areas
5. Disclose certain areas
Restricted headroom, vault space, connectors & mezzanines
(Optional) Cap load factor to market

Chart 1 – IGA Boundaries

ID # Condition Description IGA Boundary
1 Vertical exterior enclosure Dominant portion
2 Public pedestrian thoroughfare Enclosure limit
3 External Circulation Edge of external circulation
4 Non-vertical ext. enclosure Inside face of wall at floor level
5 No dominant portion Inside face of wall at floor level
6 Unprotected ext. opening Outside face of wall or columns
7 Void with full or partial wall Dominant portion
8 Void without a wall Edge of floor surface
9 Ownership change Property line

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3 – Space Boundaries
Chart 2

Major vertical penetrati0n

Base building circulation

Occ. storage (excluded)

Wall Priority Diagram

Building service area

Occ. & amenity area

Floor service areas
Parking (excluded)

(Method B only)
FS = Far side of wall
CL = Centerline of wall
NS = Near side of wall
Major vertical penetration CL FS FS FS FS
Building service area
Parking (excluded)
NS CL FS FS FS
Floor service areas NS NS CL FS FS
Base building circulation
(Method B only)
NS NS NS CL FS
Occupant & amenity area
Occupant storage (excluded)
NS NS NS NS CL

Method A GSA Spreadsheet

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Method B GSA Spreadsheet

Method A & B Comparison

Method A Method B
Occupant Rentable Rentable
Floor Tenant Area Area Area Difference
Occupant Area A 2,091.72 2,499.98 2,593.70 93.72

1 Occupant Area B 9,379.59 11,210.29 11,630.54 420.25

Total 11,471.31 13,710.28 14,224.24 513.97

Occupant Area A 2,260.48 2,906.88 2,802.96 (103.92)

Occupant Area B 2,182.74 2,806.91 2,706.56 (100.35)

2 Occupant Area C 6,736.74 8,663.16 8,353.45 (309.70)

Total 11,179.96 14,376.94 13,862.98 (513.97)

Building total 22,651.27 28,087.22 28,087.22 -

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Lease Language
> To cite the 2010 BOMA Office Standard:
Size of Premises – Approximately <XXX> square feet of Rentable
Area, computed under ANSI/BOMA Z65.1-2010 Method B.
> If leasing an entire building to a single tenant using
gross area as the basis for leasing:
Size of Premises – Approximately <XXX> square feet of Gross Area,
computed under ANSI/BOMA Z65.3 -2009 Method B.
> Important to specify the year
If your lease does not specify the version, assumption is the version
current as of date of lease.
> CONSULT YOUR ATTORNEY!
But you may have to educate him/her on the BOMA family of
standards!

If you have further questions, call a Metrologist!

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Conclusion
> Voluntary
> 2% Tolerance
> Apply to whole
building
> Apply whole
standard
> Specify Method A/B
> Not for gross office
lease

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