All property owners need to be concerned about proper "building" and "land" measurements. This includes both residential and commercial tenants of space.
Tenants who lease commercial space of all types are most vulnerable. It doesn't matter if it's office, retail, R&D, industrial or warehouse space.
The main problem is that most tenants, or users of space, do not know , or have been properly informed of the difference between Gross Leasbale Area(GLA) and Gross Useable Area(GUA).
To complicate matters there is no established law regulating the measurement of space. BOMA, or the Building Owners and Managers Association have general guidelines and recommendations but there is no universally accepted space measurement guideline.
On one hand property owners argue that a mortgage and real estate taxes are on the entire building area and thus "common areas," halls, stairwells, lobbies, should be included as part of the base lease amount.
Tenants onthe other hand simply want "space" to use not thinking there is several ways to measure interior space. For years the Boston norm was to measure interior space from the interior walls. The New York City norm was to measure space from the exterior wall to the middle of a common corridor or hall way.
I recommend that the method of measuring space be clearly defined in either the lease or in the written Tenant-at-Will agreement together with a diagram of the GLA and GUA.
Always double check measurements. Mistakes and errors do occur.
Residential condo owners would be wise to also double check all measurements of their individual unit.
Hope this has been helpful,
BillMcInerney
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