Office Property Information -

• The term "office" can refer to whole buildings, floors, parts of floors, or office parks.
  
• Office space that can be used for a variety of purposes is sometimes referred to as "generic" office space.
  
• On the other side of the spectrum, an office building can be built specifically to meet a user's functional and technical needs (for example, a Medical Building).
  

The Building Owners and Managers Association (BOMA, www.boma.org) distinguishes the following 3 Types Of Offices by the number of floors: 

• LOW-RISE:    Fewer than 7 stories above ground level
  
• MID-RISE:     Between 7 and 25 stories above ground level
  
• HIGH-RISE:   More than 25 stories above ground level

Location, Location, Location!

• Location affects value and rent. Suburban properties are valued differently than those in the central business district and downtown areas.

Property Classification

• Office properties may be classified as class A, B, or C. Class "A" properties are the most functionally modern. Properties classed "B" and "C" in the same market typically command lower rents because they are older and have experienced some degree of obsolescence. 

Common Terms:

Gross Square Feet (GSR):

• Includes all enclosed areas of all floors in a building.  Term only used in leases of "single-user" buildings. 

Rentable Square Feet (RSF):

• Gross measured area of the building minus major vertical penetrations (such as elevator shafts, vents, and stairways).

Useable Square Feet (USF): 

• Rentable square feet for the building minus all floor common areas and all building common areas. 
• Tenants want to know the amount of USF available, and how much the space costs per square foot (psf).

Building Common Area:

• Areas in the building that are for the common use of all tenants in the building, but not included in office areas and store areas.  Examples are: main building lobby, fire corridors on first floor, building mail room, public restrooms, and vending rooms.

Add-on Factor:

• The add-on factor is simply the ratio of rentable to useable square feet (RSF/USF = add-on factor.)

Efficiency Percentage:

• The efficiency percentage is simply the ratio of useable square feet to rentable square feet (USF/RSF = E.P.).

Note: Though some of these expenses may be passed along to tenants as "Common Area Maintenance (CAM)," an owner of an office building often pays for the following:

• Electricity
• Supplies
• Heating
• Air Conditioning/HVAC
• Cleaning Services
• Internal Repairs
• Trash Removal
  

-Steve S. Lavaeddin
Committed To Taking Action!