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Knowing the exact measurements of the usable or rentable portions of commercial real estate buildings is very important for both the owner and the tenants. Most commonly, the rate for commercial offices are computed on a square footage basis. For the owners of rental premises, knowing the accurate available floor space is vital so the property will not be undervalued. For tenants, an accurate computation of the useable area of the lease unit is just as important to avoid over payment for that location. Following are some space assessment techniques that can be used. Measurement Methods - The method of measurement used by realtors varies depending upon the location of the buildings. For example, commercial property located in regions such as New York City as well as parts of Connecticut and New Jersey use the Real Estate Board of New York (REBNY) standard. Real estate properties located in Washington D.C. and other nearby regions, such as Maryland and Virginia, are measured using the Greater Washington Commercial Association of Realtors (GWCAR) standard. Another preferred and more widely used method of measurement is the Building Owners and Managers Association (BOMA) system. Building Plan Calculation - For all these systems of measurement, the building plans may be used as a convenient way to calculate the area to be rented or leased; however, when building plans are unavailable, then the realtor will have to actually hand-measure the office space. Other Types of Calculation - To get an idea of how office premises can be accurately sized by hand, a real estate broker would have to measure the length and width of each room using a measuring device of some kind. The figures are then multiplied to determine the square footage of the room. If the office space is composed of several rooms, it is important to draw the space on a sheet of paper to get a thorough computation. Include hallways, bathrooms and closets that are within the rented area so that they will be included in the computation. Add all of the space together to determine the rented space in square feet. Since commercial office areas are rented on a square footage basis, computing the value for the entire lease space is as simple as multiplying the total area in square feet by the rental rate per square foot, the final figure representing a potential yearly rental price. For tenants, the square footage value of the office space is stipulated in the lease agreement. For example, if an office area has a total of 10,000 square feet with a leasing rate of $15 per square foot, the annual rental rate would be $ 150,000 plus the applicable taxes and maintenance costs. Expenses for common areas, such as bathrooms, hallways, elevators and lobbies, should be added as well. To compute the expenses for these common areas, simply multiply the expense rate by total rentable space. A pro rata percentage would need to be applied dependent upon the number of clients utilizing such common areas if other than just that one company. The resulting amount should be added to the total rental cost. To get the monthly rate, simply sum up the annual rental cost, tax, maintenance fees and other expenses for the common areas and divide it by 12. The result will then be the monthly lease rate for the commercial office space. Getting accurate commercial office space measurements is important for both the property owner and the tenants. When looking for such premises to lease, a professional realtor can provide an unbiased and accurate computation of a commercial real estate square footage. Then the commercial real estate for which a tenant pays will truly measure up to their expectations! C. Michael Hunter is an expert in commercial real estate and office space information. To find out more about Dallas Commercial Office Space, go to the main website at: http://www.lcrgusa.com/.
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