IPMS - Office Buildings
IPMS - Office Buildings
IPMS - Office Buildings
International Property
Measurement Standards: Office Buildings
International Property Measurement Standards Coalition
November 2014
Contents
On behalf of the members of the IPMS Coalition, currently the market to ensure we capture necessary updates
56, we would like to present to you ‘IPMS: Office Buildings’. for continued growth and improvement. In addition to
The project is the first of its kind. For the first time numerous preparing further IPMS standards for other building classes
organisations from all over the world have come together (such as residential, industrial and retail), the SSC will also
to create one shared international standard for property monitor all guidance notes on IPMS to ensure that they are
measurement. We have recognised that the past practice of consistent with the principles and intent of IPMS. All local,
inconsistent measurement standards is unacceptable. Our regional or worldwide approaches will be well documented
profession and market places deserve better. to allow coordination, expansion and consistency of IPMS
guidance whenever required.
For this reason we have come together to support this process
and one shared standard. Starting with a meeting at the World In preparing both the earlier consultation documents and
Bank in May 2013, we each signed a Declaration confirming this final standard the Coalition wishes to acknowledge the
we are ‘committed to promote the implementation of these work on the explanatory drawings undertaken by Professor
standards to encourage world markets to accept and adopt Marc Grief and Johannes Helm of Mainz University of Applied
IPMS as the primary method of property measurement’. Sciences, and Robert Ash and Tom Pugh of Plowman Craven
Limited.
After the May 2013 meetings we formed an independent
Standards Setting Committee (SSC). The SSC includes As a Coalition we are also beginning the important work
technical experts from 11 countries and a combined expertise of implementation. We are engaging with governments
covering 47 different markets. The SSC worked virtually and to adopt IPMS – and we congratulate Dubai as the first
also gathered three times, in Brussels, Dubai and Orlando. government to do so. We are also together, as a Coalition,
engaging the many other key market stakeholders. On the
The generous donation from the Comité de Liaison des
ipmsc.org website we have released the list of IPMS Partners
Géomètres Européens (CLGE) of the euREAL standard was
– businesses committed to IPMS.
the basis of their comprehensive, far-reaching and efficient
work. Completing a task of this magnitude should take many On behalf of the Coalition, the SSC and the numerous
years. The SSC produced the complete Consultation Draft of participants in the consultation, we are proud to present the
IPMS for Offices less than one year later in January 2014. After IPMS for Office Buildings.
ending the Exposure Draft consultation period in September
For further information on IPMS please visit the website
2014, the final ‘IPMS: Office Buildings’ was launched in
www.ipmsc.org
November 2014.
The Coalition accepts that standard setting is a continuous
and dynamic process, and will be listening closely to
Kenneth M. Creighton, Trustee for Lisa M. Prats, Trustee for BOMA Jean-Yves Pirlot, Trustee for CLGE,
RICS, Chairman of the Board of International, Vice Chair of the Secretary General of the Board of
Trustees IPMS Coalition Board of Trustees IPMS Coalition Trustees IPMS Coalition
Introduction
American Society of Farm Managers and Rural Appraisers Institute of Real Estate Management (IREM)
(ASFMRA) International Association of Assessing Officers (IAAO)
Appraisal Institute (AI) International Consortium of Real Estate Associations (ICREA)
Asia Pacific Real Estate Association (APREA) International Facility Management Association (IFMA)
Asian Association for Investors in Non-listed Real Estate Vehicles International Federation of Surveyors (FIG)
(ANREV)
International Monetary Fund (IMF)
Asociación de Promotores Constructores de España (APCE)
International Real Estate Federation (FIABCI)
Asociación Española de Análisis de Valor (AEV) International Union of Property Owners (UIPI)
Asociación Española Geómetras Expertos (AEGEX) International Union of Tenants (IUT)
Asociación Professional de Sociedades de Valoración (ATASA) Italian Real Estate Industry Association (ASSOIMMOBILIARE)
ASTM International Japan Association of Real Estate Appraisers (JAREA)
Australian Property Institute (API) Japan Association of Real Estate Counselors (JAREC)
British Property Federation (BPF) Japan Building Owners and Managers Association
Building Owners and Managers Association of Canada (BOMA Japan)
(BOMA Canada)
National Society of Professional Surveyors (NSPS)
Building Owners and Managers Association of China
(BOMA China) NP “Cadastral Engineers”
Building Owners and Managers Association International Open Standards Consortium for Real Estate (OSCRE)
(BOMA International) Property Council of Australia (PCA)
China Institute of Real Estate Appraisers and Agents (CIREA) Property Council New Zealand (PCNZ)
Commonwealth Association of Surveying and Land Economy Real Estate Syndicate of Lebanon (REAL)
(CASLE)
Real Property Association of Canada (REALpac)
Consiglio Nazionale Geometri e Geometri Laureati (CNGeGL)
Royal Institution of Chartered Surveyors (RICS)
CoreNet Global Secovi SP (S )
Council of European Geodetic Surveyors (CLGE) Society of Chartered Surveyors Ireland (SCSI)
Counselors of Real Estate (CRE) South African Property Owners Association (SAPOA)
Cyprus Architects Association (CAA) Technical Chamber of Cyprus (ETEK)
Cyprus Association of Civil Engineers (CYACE) The Appraisal Foundation (TAF)
European Council of Real Estate Professions (CEPI) Union Nationale des Economistes de la Construction (UNTEC)
The growth of cross-border property investment and IPMS is a high level standard. Markets that do not have an
expansion by global corporate occupiers underpins the existing established measurement standard are encouraged
demand for transparency against the background of to adopt IPMS. The SSC did not identify any existing
many differing national and local Building measurement measurement standard that was suitable for adoption
conventions. The aim of the Coalition is to enable Buildings internationally. Therefore, in all developed markets, where
to be measured, and the resulting calculated areas to be existing measurement conventions are established, significant
provided, on a transparent basis. IPMS will promote market adjustment will be required. We expect IPMS to work initially
efficiency through greater confidence between investors and in parallel with local standards and for a dual reporting basis
occupiers by providing consistent property measurements for and interface to be adopted where appropriate. In time we
transactions and valuations. expect IPMS to become the primary basis of measurement
across markets.
Research by the SSC found that transaction and valuation
practices vary substantially across markets and this The SSC considered it unrealistic to create a single standard
standard is not meant to remove these differences. The that would be immediately applicable to all classes of
SSC has focused only on issues directly related to Building Buildings because each has distinctive characteristics that
measurements and calculated areas within a Building. It is require individual analysis. However the SSC determined
acknowledged that different countries use different Floor that the principles, methodology and measurement
Area elements in transaction and valuation practices. IPMS practices developed for IPMS will be similar in standards for
will enable comparison of differing practices by interfacing to residential, industrial and retail Buildings. These will need to
a common measurement language. be consistent as another class of Building, mixed use, would
incorporate several Building classes.
The SSC prioritised setting a measurement standard for office
Buildings because of concerns raised by those operating In order to resolve confusion with terms that have established
in a high-value global market that does not have a global definitions we have avoided using existing Floor Area
language. The CLGE Measurement Code for the Floor Area descriptions such as Gross External Area (GEA), Gross Internal
of Buildings, the European Real Estate Area Label (euREAL), Area (GIA) and Net Internal/Lettable Area (NIA/NLA). These
provided the starting point. Current terminology used to terms are commonly, but inconsistently, used in markets
describe office Floor Area (such as rentable, usable, leasable, across the world.
net internal, net lettable and carpet area) means different
The SSC consulted widely to understand the measurement
things in different markets, resulting in confusion for owners
conventions used in different international markets. Our
and occupiers working internationally. For example, an
research found there was a need to measure the external area
organisation occupying 10,000m2 in one country could find
of a Building, for planning purposes or the summary costing
the identical space described as 12,000m2 in another, or a
of development proposals. The SSC decided to refer to this as
company wanting to acquire 50,000ft2 in one country might
IPMS 1 and apply it to all classes of Building. There was also
need to define its space requirement as 60,000ft2 elsewhere.
a requirement to identify and categorise internal areas. This
IPMS, as an international property measurement standard, is referred to as IPMS 2 – Office and will assist the Property
has been created through a transparent, detailed and inclusive Industry to make efficient use of space and benchmarking
standard setting process by the SSC. It supports associated data. It was also important to measure areas in exclusive
financial reporting and valuation standards such as the occupation for transactions and the SSC created IPMS 3 –
International Financial Reporting Standards (IFRS) and, in the Office for this purpose.
USA, the Uniform Standards of Professional Appraisal Practice
(USPAP). The International Valuation Standards Council
(IVSC) supports IPMS, which should be read in conjunction
with International Valuation Standards (IVS).
The SSC has spent considerable time researching established
standards to ensure that existing intelligence has not been
wasted. IPMS is not a hybrid of those standards but does
introduce some concepts that may be new to some markets.
These concepts have been agreed by the SSC to have a proven
track record in the relevant market, although they have been
further refined for the purpose of IPMS.
In July 2013 the IPMSC selected real estate experts from around
the world to form its Standards Setting Committee (SSC) and
develop global standards for property measurement.
1.1 Definitions
Building
An independent structure forming part of a Property.
Coalition
The Trustees of IPMS, comprising not-for-profit organisations, each
with a public interest mandate.
Component
One of the main elements into which the Floor Area of a Building can
be divided.
Component Area
The total Floor Area attributed to one of the Components.
Floor Area
The area of a normally horizontal, permanent, load-bearing structure
for each level of a Building.
Internal Dominant Face
The inside finished surface comprising 50% or more of the surface
area for each Vertical Section forming an internal perimeter.
IPMS
International Property Measurement Standards.
IPMSC
The International Property Measurement Standards Coalition.
IPMS 1
The sum of the areas of each floor level of a Building measured to the
outer perimeter of external construction features and reported on a
floor-by-floor basis.
IPMS 2 – Office
The sum of the areas of each floor level of an office Building
measured to the Internal Dominant Face and reported on a
Component-by-Component basis for each floor of a Building.
IPMS 3 – Office
The Floor Area available on an exclusive basis to an occupier, but
excluding Standard Facilities, and calculated on an occupier-by-
occupier or floor-by-floor basis for each Building.
Property
Any real estate asset in the built environment.
Property Industry
Comprises Users, Service Providers and Third Parties.
Service Provider
Any entity providing real estate advice to a User including, but not
limited to, Valuers, surveyors, facility managers, property managers,
asset managers, agents and brokers, Space Measurement Professionals,
cost consultants, interior designers and architects.
Space Measurement Professional
A Service Provider qualified by experience or training to measure
Buildings in accordance with IPMS.
Standard Facilities
Those parts of a Building providing shared or common facilities
that typically do not change over time, including, for example,
stairs, escalators, lifts/elevators and motor rooms, toilets, cleaners’
cupboards, plant rooms, fire refuge areas and maintenance rooms.
Third Party
Any entity other than a User or Service Provider with an interest in
property measurement including, but not limited to, governments,
banks, other property financing bodies, data analysts and researchers.
User
An owner-occupier, developer, investor, purchaser, vendor, landlord or
tenant.
Valuer
A Service Provider with an appropriate professional qualification in
valuation or appraisal.
Vertical Section
Each part of a window, wall or external construction feature of an
office Building where the inside finished surface area varies from the
inside finished surface area of the adjoining window, wall or external
construction feature, ignoring the existence of any columns.
2.2.3 Tolerance
The measurement tolerance is to be specified in the scope of work
and report. The Service Provider should provide an appropriate
degree of tolerance having regard to the nature of the instruction, the
equipment available and conditions at the time of measurement.
3.1 IPMS 1
3.1.1 Use
IPMS 1 is used for measuring the area of a Building including external
walls. In some markets it can be used by parties for planning purposes
or the summary costing of development proposals.
3.1.2 Definition
IPMS 1: The sum of the areas of each floor level of a Building
measured to the outer perimeter of external construction features
and reported on a floor-by-floor basis.
The definition of IPMS 1 is the same for all classes of Building.
In many markets, but not universally, this is known as Gross External
Area.
Inclusions:
The external area of basement levels is calculated by extending
the exterior plane of the perimeter walls at ground floor level
downwards, or by estimation of the wall thickness if the extent of the
basement differs from the footprint of the Building.
Measurements included but stated separately:
Balconies, covered galleries and generally accessible rooftop terraces
are included. They are to be measured to their outer face and their
areas are to be stated separately.
Exclusions:
Measurement for IPMS 1 is not to include the area of:
• Open light wells or the upper level voids of an atrium
• Open external stairways that are not an integral part of the
structure, for example, an open framework fire escape
• Patios and decks at ground level, external car parking, equipment
yards, cooling equipment and refuse areas, and other ground
level areas that are not fully enclosed are not to be included
within IPMS 1, but may be measured and stated separately.
3.2.2 Definition
IPMS 2 – Office: The sum of the areas of each floor level of an office
Building measured to the Internal Dominant Face (see 3.2.3) and
reported on a Component-by-Component basis for each floor of a
Building.
In many markets, but not universally, this is known as Gross Internal
Area.
Inclusions:
IPMS 2 – Office includes all areas, including internal walls, columns
and enclosed walkways or passages between separate Buildings,
available for direct or indirect use. Covered void areas such as atria are
only included at their lowest floor level.
Measurements included but stated separately:
Balconies, covered galleries and generally accessible rooftop terraces
are included. They are to be measured to their inner face and their
areas are to be stated separately (see page 19: Component Area H).
Exclusions:
Measurement for IPMS 2 – Office is not to include the area of:
• Open light wells or the upper level voids of an atrium
• Patios and decks at ground level not forming part of the building
structure, external car parking, equipment yards, cooling
equipment and refuse areas, and other ground level areas that
are not fully enclosed are not to be included within IPMS 2 –
Office, but may be measured and stated separately.
Floor -2 -1 0 1 2 3 4 Total
IPMS total 0 0 0 0 0 0 0 0
IPMS total 0 0 0 0 0 0 0 0
IPMS total 0 0 0 0 0 0 0 0
IPMS total 0 0 0 0 0 0 0 0
IPMS total 0 0 0 0 0 0 0 0
Floor -2 -1 0 1 2 3 4 Total
Workspace 0 0 0 0 0 0 0 0
IPMS total 0 0 0 0 0 0 0 0
IPMS total 0 0 0 0 0 0 0 0
Any other areas (Example – equipment yards, cooling equipment, refuse areas) 0
3.3.2 Definition
IPMS 3 – Office: The Floor Area available on an exclusive basis to an
occupier, but excluding Standard Facilities and shared circulation
areas, and calculated on an occupier-by-occupier or floor-by-floor
basis for each Building.
Standard Facilities are those parts of a Building providing shared or
common facilities that typically do not change over time, including,
for example, stairs, escalators, lifts/elevators and motor rooms,
toilets, cleaners’ cupboards, plant rooms, fire refuge areas and
maintenance rooms.
Inclusions:
All internal walls and columns within an occupant’s exclusive area
are included within IPMS 3 – Office. The Floor Area is taken to the
Internal Dominant Face and, where there is a common wall with an
adjacent tenant, to the centre-line of the common wall.
Measurements included but stated separately:
Balconies, covered galleries, and rooftop terraces in exclusive use are
to be measured to their inner face and their areas stated separately.
Exclusions:
Standard Facilities, as defined above.
Standard Facilities may vary from floor to floor and will also vary
according to how the Building is occupied. In the case of a Building
in single occupation it has to be assumed, hypothetically, that
the Building is in multiple occupation, floor by floor, in order to
determine the extent of the Standard Facilities. If a floor has two or
more occupiers, each is to be measured separately and any shared
circulation areas are also excluded.
see
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