Owners and developers of office buildings can earn 10% more from rents

Building Owners and Managers Association (BOMA) or International Property Measurement Standard (IPMS) measurement standards for leasable areas can lead to an increase of the commercial value of office spaces, above 10% per month for owners, according to Colliers International’s consultants.

The increase comes from the addition of leasable areas omitted from the initial architectural layouts. For example, in the case of an office building with a leasable area of ​​20.000 square meters, this increase translates to additional income from rents of above 300.000 euro per year.

With over 1.000.000 square meters of Class A offices, in 75 projects, existing or in development across the country, measured using BOMA or IPMS standards over the past 8 years, Colliers International is by far the market leader among real-estate and consultancy companies offering such services on the local office market.

The main benefit of these consultancy services is that developers and owners of Office Buildings can establish each project’s efficiency and profitability from the perspective of the Gross Leasable Areas of the building as a whole, as well as for each floor.

In most cases, the increase of Gross Leasable Area is achieved and therefore landlords can rent all the spaces that contributed to the cost of the development of the project, spaces which are sometimes omitted from the initial architectural layouts. At the same time, the risk of having an additional, non-competitive Add-on Factor of Building common areas is avoided.

“These measurements increase the commercial value of the projects. For a building of 20,000 square meters, a 5% higher leasable area means an additional income that can exceed one million euro over a five-year contract period, considering an EUR 14 average rent per square meter, In some cases we managed to add over 10% more leasable areas”, explains Ramona Savencu, Senior Associate Office Advisory at Colliers International.

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