Igor Sirenko, Director of the Valuation Department, PICKARD Real Estate & Assets Services Company, talks about the possibility of using this methodology in Ukraine and its advantages.
- Is it possible to use this international measurement system in Ukraine, despite the fact that the BOMA standard does not have an official status in our country?
- Practice shows that in Ukraine there is a request for a work with such a standard. Real estate professionals know why such calculations are needed and why they are in demand among owners, investors and international companies that rent high-quality office, warehouse and retail space.
- What are the essence and objectives of the BOMA standard?
- The essence is a correct and understandable calculation of the area of the object, both general and leased one. The goal is to make the calculations as transparent as possible.
The BOMA standard can be applied at different stages of construction and further building’s operations. This means that real estate specialists can recommend to designers, architects, and designers options for the most efficient use of building space. If necessary, this standard allows you to adjust the space planning decision. Moreover, at the stage while the project of the object is still “on paper”.
- Which areas are taken into account in such a standardized approach?
- The entire volume of space is taken into account, from the living space/”useful” area to the structures that “devour” the space. Take, for example, zones that are actually used by the tenant, but do not belong to his area of responsibility. These can be the entrance and exit areas of the building, halls, a corridor, an elevator shaft, staircases, ventilation ducts, sanitary facilities, etc. Common areas include conference rooms, lobbies and shopping areas, public catering facilities and similar areas. If the "useful" area should be calculated, then even thickness of the outer facade wall is a matter. The size (area) of the interior of such a wall take an account in the lease rate coefficient of the property.
- What opportunities, in your opinion, does the international system of standards provide to users?
- Standard Method of Measurement eliminates ambiguity. With it, you can unify all the parameters that are used in world practice in real estate.
If an international investor enters any country, he understands that for real estate objects of interest to him there is a calculation according to these standards, which he uses in his financial model. In addition, there is an effective-demand factor derived also according to these standards. As for the potential tenant, it is also important for him to understand how much “useful” space in the office center, how much “useless”, etc.
- And if he does not have such data?
- There is a high probability that he will order calculations himself. Unfortunately, we also came across such owners who operates figures “from the ceiling” (who operates figures from nowhere) and, when drawing up the contract, they voiced that they use the “BOMA coefficient”. Somewhere to hear such a term is one thing. But to check whether such a calculation is made there in reality, only an expert can.
- Does this standard require official recognition in Ukraine?
- This is, first of all, the requirement and desire of landlords and tenants - to understand what they lease and how to effectively use the area of the building.
To be continued. Next, we will learn how the current standard for measuring the BTI is “arranged” and whether there are any properties in Kiev where BOMA calculations were used.
Igor Sirenko, Director of the Valuation Department, PICKARD Real Estate & Assets Services Company, continues to talk about the possibility of using BOMA Standard calculations in Ukraine and its advantages.
- Are there any objects in Kiev, where BOMA calculations were used?
- A similar calculation was made for Parus business center by our colleagues. It was taken into account the degree of efficiency of the location of offices of banks, companies, restaurants and other premises.
In general, according to the BOMA standard, the building plan is divided into the types of premises used: “tenant area”, “auxiliary area”, “total floor area”, and “vertical apertures”: ventilation chambers, lift rooms, staircases, and atria.
For example, there are two office centers. The project of one of them was made with a large number of “common use” places, the project of the other with less, that is, it is more ergonomic.
Within the market there is a certain coefficient, which has a range of values: 1.15-1.2. This is a market average. If, for example, a neighboring building with a coefficient of 1.3 is offered for rent, it is of less interest to a potential tenant.
- Now Ukraine uses the BTI standard. How are measurements taken?
BTI is a math: only width, length and height. And descriptions of structural elements, for example, material - brick, floors - wood, roof - slate. Sometimes the “main” area, “living”, “auxiliary”, is indicated - such is the classification of the interior.
- Is the BOMA standard somehow updated in the spirit of the times?
- The BOMA standard is regularly amended (1996, 2010). It is updated, given the new trends in architecture, but the essence does not change, the basic principles are set out a long time ago. For office, warehouse and retail premises, the essence is the same: how to measure correctly and how to calculate correctly.
At the planning stage, architects take standards into account and as a result we get a table with indicators. They can be compared with indicators of other objects: there is a comparative analysis table for this, where calculations are given for assigning categories.
For example, in the EU countries, a number of office and shopping centers can boast of an environmentally friendly approach even at the construction stage. The presence of this approach and the compliance of building materials with technical requirements is confirmed by a certificate document. Thus, the potential tenant receives additional information about the premises, which may effect on their decision making. Corresponding certificates are available, for example, in Lidl shopping centers (Bulgaria, Romania, Greece).
If you have a need for calculations according to the BOMA standard, accordingly certified experts of Pickard are at your service: +38 050 311-39-73.