Space measurements should always be considered during lease negotiations because there are significant impacts on both the landlord and tenant side of the equation. Accurate and clear space measurement ensures transparency and fairness, which in turn can prevent conflicts that may arise from misunderstandings or discrepancies between landlords and tenants.
For tenants, understanding the precise dimensions of the leased space allows them to plan effectively, ensuring that their operations, equipment, and staff can be accommodated comfortably. It also enables tenants to accurately assess and compare different lease options, thereby making informed decisions about the most suitable space to accommodate their needs.
Landlords, on the other hand, benefit from providing precise measurements as it establishes trust with potential tenants, enhances their reputation, and facilitates smooth lease transactions. The space measurement process provides an accurate inventory of your square footage, and can sometimes identify/uncover space you didn’t know existed.
How can you benefit from what we do?
The Building Owners and Managers Association (BOMA) have meticulously crafted a suite of measurement standards to address a wide variety or property types (office, industrial, retail, mixed use, etc.). Here in the Lasercad® division of Turner Drake & Partners Ltd. we identify and employ the appropriate BOMA standard for your building, ensuring space is accurately measured in accordance with the proper/accepted standard method of measurement.
BOMA certifications set properties apart from other non-certified ones. Landlords can leverage the certifications in marketing and promotional efforts, highlighting the building’s functionality and the benefits it offers to tenants. This can attract a broader pool of potential tenants and increase the property’s visibility in the market, potentially leading to higher rental rates and long-term tenants.
BOMA certifications indicate that a property is well-managed and adheres to industry-recognised standards. This can make the property more appealing to potential tenants, leading to an increased tenant demand, reduced vacancy periods, higher occupancy rates, and the ability to attract high-quality tenants.
What tools and processes do we use?
In order to ensure we’re getting the most precise measurements; we use high-quality lasers measuring systems which are capable of measuring over 300 feet with an accuracy of 3 millimeters. There are systems on the market that scan and draw the unit in a single step—fully automatic with little human input but alas….computers are not perfect and algorithms and assumptions are built into the software! We prefer the precision of a laser system which is backed up by the human element. We employ lasers for the on-site measurement, then double check closing errors by hand before leaving the job site. Back in the office, we download the data into a CAD program and draft the floor plans, once again checking to ensure minimal closing errors. These extra layers of quality control greatly reduce the risk of any potential human and technological error.
Why is this level of precision so important?
Since 1976, we have measured and certified over 10,000 buildings and tenant spaces in Atlantic Canada and Ontario and have discovered it is not unusual to find that 50% of the leases in a building show incorrect Rentable and Occupant areas. This can occur because of one (or multiple!) of the following factors: inaccurate measurement (e.g. “counting the ceiling tiles”), space modifications on lease renewal which were not corrected in the new lease, or use of a non-standard or inappropriate Method of Measurement. The latter can result in the same space having a rental rate of $16.82/ft.², $15.00/ft.², $14.89/ft.², $13.33/ft.², $12.74/ft.²…simultaneously…because it is measured using any one of the non-standard methods in use.
At a rental rate of $15.00/ft.² net absolute, every 1,000 ft.² “lost” could reduce the value of the property by $250,000. Over a typical 5-year lease term, this could also mean a “lost” rental revenue of over $65,000!
Over the years, technology has changed significantly. The lasers we use have become smaller, faster, and more accurate. There is an astounding amount of space measurement technology currently being produced, and we’re keeping our eyes on options which may further improve our processes. Overall, however, we will always place a high value on the “human element” of our resources. Our goal is to ensure we are creating a service and product which will increase the accuracy and efficiency of space in the Canadian commercial real estate market, and will benefit our clients and their tenants, now and in the future.
Palmer Lumb is a consultant in our Lasercad® division, as well as our Economic Intelligence Division and is also involved in our Planning Division. For more information about how you can benefit from the expertise of our Lasercad® division, contact Palmer at (902) 429-1811 or firstname.lastname@example.org