Global standards to measure commercial property to be introduced
With variations across the globe in the way property is measured it can be undoubtedly difficult for anyone trying to get a grip on the property market.
However, difficulties caused by these variations are expected to become a “thing of the past” as a new global standard will be implemented later in 2014.
Research from Jones Lang LaSalle has found that, depending on the method used, a property’s floor area’s measurement can see results deviating by up to 24%.
The International Property Standards Coalition, who have proposed the new standard, are looking to ensure consistency in the measuring of property assets.
Currently, in parts of the Middle East the floor measurements can also include “hypothetical areas”, while in India floor measurements can include off-site carparks and common areas, and over in the United States some property is measured by air conditioned space used.
“The international standard is the first of its kind and will provide a common language for measuring offices across international markets, creating certainty for real estate professionals including investors, lenders, agents, valuers and occupiers,” said Kaye Herald, managing director for the Royal Institution of Chartered Surveyors Asia Pacific.
“It is about creating a more transparent marketplace, enhancing public trust, increasing consistency in the reporting of property size, and building investor confidence.”
“A property can be listed as 5,000 square feet, but unless it is clear how that measurement was arrived at, it is difficult to know for sure that you are comparing apples with apples,” Herald said.
“Under one standard a property might be 5,000 square feet and under another 3,500 square feet. The fact is you can never be 100 per cent sure what you are going to get.”
A public consultation on the new standard was launched today, which marks the start of a three month consultation period closing in April, which calls for sector practitioners and stakeholders to comment.