How we measure office space is changing. The most widely accepted measurement standard by the Building Owners and Management Association (BOMA) recently released a new measurement standard for office space utilizing two different methods. The biggest change is the method of creating a single-load factor for all floors in an office building; in general terms, a “load factor” is the ratio of common areas added to a space’s useable area (i.e., the actual measurement) to arrive at its rentable area (i.e., basis of rent and other economic lease terms). The other option under the new standard is a slight variation on the 1996 standard maintaining differing load factors on each floor. While the measurement of individual floors will vary under either method under the new standard, the total rentable area of the building will be the same. Below is a brief discussion of the drivers behind the change, the nature of the change, and what tenants (including those considering renewal) should be thinking of to safeguard their interests. Keep in mind that this is a voluntary standard and it will be up to the commercial real estate industry to see how it is received and adopted.
