Maximizing Office Space Value in a Post-COVID World
By
Floorwire Team
·
3 minute read
The COVID-19 pandemic has significantly impacted the commercial real estate industry, particularly the office building sector. Building owners and investors must adapt to the changing landscape as more employees work remotely and companies rethink their office space needs. Maintaining accurate BOMA, REBNY, and rentable calculations and measurements is crucial to consider in this rapidly evolving environment. This article will explore why these calculations are essential for office building owners and investors, particularly those considering converting buildings for alternative uses.
Understanding BOMA, REBNY, and Rentable Calculations
Before delving into the importance of these calculations, it's essential to understand what they entail. BOMA (Building Owners and Managers Association) and REBNY (Real Estate Board of New York) provide guidelines for calculating rentable square footage in commercial buildings.
BOMA International is a leading organization that offers guidelines for measuring the rentable square footage in commercial properties. The BOMA standards provide a uniform methodology for determining the total usable and rentable square footage, considering common areas, building services, and amenities. By adhering to BOMA guidelines, building owners can ensure their properties are consistently measured and valued, promoting fairness and transparency in leasing.
REBNY is another organization that offers guidelines for calculating rentable square footage in commercial properties, specifically in New York City. Like BOMA, the REBNY method aims to provide a consistent and transparent approach to measuring and valuing commercial properties. While there are similarities between BOMA and REBNY methods, there are also crucial differences that building owners should be aware of, particularly when comparing properties in different markets.
Rentable Calculations are essential for determining the revenue-generating potential of a commercial property. By accurately calculating the rentable square footage, building owners can ensure that they maximize their property's income potential and make informed decisions about leasing, renovations, and building conversions.
The Transforming Office Building Sector
The COVID-19 pandemic has accelerated the transformation of the office building sector. As more employees work remotely, companies are reevaluating their office space needs, increasing vacancy rates and decreasing demand for traditional office spaces. This shift presents both challenges and opportunities for building owners and investors.
Challenges
- Decreasing demand for traditional office spaces
- Rising vacancy rates
- Pressure to reduce rental rates
- Increased competition from coworking and flexible office space providers
- Uncertainty surrounding the future of office spaces and tenant preferences
Opportunities
- Repurposing underutilized office spaces for alternative uses, such as residential, retail, or industrial
- Implementing flexible office space solutions to attract a broader range of tenants
- Capitalizing on the growing demand for sustainable and healthy office environments
- Investing in technology and amenities to enhance the tenant experience and support remote work
The Importance of Accurate BOMA, REBNY, and Rentable Calculations in the Transforming Office Building Sector
Maintaining accurate BOMA, REBNY, and rentable calculations is more critical as the office building sector evolves. Here are several reasons why these calculations are essential for building owners and investors:
Informed Decision-Making
Accurate square footage calculations enable owners and investors to make informed decisions about leasing, renovations, and building conversions. By understanding the actual rentable square footage of a property, owners, and investors can better assess the property's revenue-generating potential and make strategic decisions accordingly. This information is precious when considering converting an office building to an alternative use, as it provides a clear understanding of the available space and its potential for generating income.
Fair and Transparent Leasing Process
Adhering to BOMA and REBNY guidelines promotes a fair and transparent leasing process by ensuring that all parties involved consistently and accurately understand a property's rentable square footage. This uniformity helps prevent disputes and misunderstandings between building owners, tenants, and brokers, ultimately fostering a more efficient and harmonious leasing process.
Enhanced Property Valuation
As the office building sector undergoes significant changes, it is more important than ever for owners and investors to assess their properties' worth accurately. Maintaining accurate BOMA, REBNY, and rentable calculations is crucial for determining a property's value. By adhering to industry-standard measurement guidelines, building owners can ensure their properties are consistently valued and more attractive to potential buyers or investors.
As office spaces evolve to accommodate changing tenant preferences and remote work, optimizing space utilization becomes increasingly essential. Accurate square footage calculations allow building owners to assess their properties' efficiency and identify improvement areas. By optimizing space utilization, owners can create more appealing and functional office environments that attract and retain tenants, ultimately driving revenue and enhancing the property's value.
Compliance with Industry Regulations
Accurate BOMA, REBNY, and rentable calculations ensure that building owners comply with industry regulations and guidelines. Non-compliance can result in financial penalties, disputes, and reputational damage, making it essential for owners to prioritize accurate measurement and reporting practices.
Tools and Technology for Accurate Calculations
In today's fast-paced and competitive commercial real estate landscape, utilizing technology to streamline processes and enhance accuracy is crucial. Several tools and platforms can help building owners maintain accurate BOMA, REBNY, and rentable calculations.
- Measurement Software can simplify calculating rentable square footage according to BOMA and REBNY guidelines. These tools can help building owners ensure that their calculations are consistent, accurate, and compliant with industry standards. Property
- Management Platforms, such as Floorwire, offer a comprehensive suite of tools to help building owners and investors manage their properties more effectively. These platforms often include automated dynamic stacking plans, advanced visualization tools, and seamless integration with rentable space calculations, enabling users to make data-driven decisions and optimize their properties' performance.
- Professional Services for building owners who prefer a more hands-on approach, professional services such as architects, space planners, and property measurement consultants can provide expert guidance and ensure that BOMA, REBNY, and rentable calculations are accurate and compliant with industry standards.
As the office building sector transforms in response to COVID-19 and the rise of remote work, maintaining accurate BOMA, REBNY, and rentable calculations is more critical than ever. By prioritizing these measurements, building owners and investors can make informed decisions, ensure a fair and transparent leasing process, optimize space utilization, enhance property valuation, and remain compliant with industry regulations. By leveraging tools, technology, and professional services, building owners can stay ahead of the curve and adapt to the rapidly changing commercial real estate landscape.