Tag Archives: square feet

Your Building May be Growing – Rentable Square Feet Get an Update

Post By : admin 3 October 2017 Leave a comment

Your building may be growing. That sounds like a ridiculous idea, right? But it may be true. Not physically, of course, but in the way the size is determined.

We have blogged in the past about buildings are measured and the difference between the useable square footage (SF) of a building and the rentable. Here’s a link to our blog post from December 2015. In that post we demonstrate how the common areas of a building are allocated to each tenant based on their share of the building. This commons areas include restrooms, elevator lobbies, electrical rooms, and others. Once the share of the common areas for each tenant is added to the useable area they get to use exclusively, you arrive at the rentable SF. And it’s the rentable SF that is used to calculate rent.

The industry group that determines the methodology of measuring building is called the Building Owners and Managers Association or BOMA. Their main purpose is to create a uniform basis for measuring new and old buildings so that they can be compared with greater accuracy. Periodically, they update the standards and 2017 is a year in which they have done just that.

The architectural firm Gensler just put out a short article about the 2017 update.

Landlords have been adding new amenities to make their buildings more attractive to prospective tenants. These include things like rooftop terraces, tenant lounges, bicycle storage, fitness centers, etc. Some of these amenities are considered common area and should, therefore, be allocated to tenants.

That’s how the building may grow. It’s not really growing, but the common area may increase due to these amenities which increase the allocation to each tenant. Thus, your rentable area may increase.

Many landlords won’t go to the expense of remeasuring their building. Others will already have the data with which to do the calculations. But it’s unlikely that they will try to change the size of your space in the middle of a tenant’s lease term. Typically, they will wait until your lease is up for renewal or you want to expand. Then they will change the size.

This is a legitimate thing for a landlord to do, however. I’m not throwing them under the bus here. Something that is truly an amenity shared by all tenants for which the landlord is not charging a separate fee is fair game for being included in the common area calculations.

Just know that this may occur and be prepared with a corporate real estate advisor like REATA to negotiate your next extension, expansion or relocation.

Bob Gibbons is a Real Estate Advisor & Tenant Advocate with REATA Commercial Realty, Inc. which is a tenant advisory firm based in Plano, Texas. Bob serves companies in Plano, Frisco, McKinney, Allen, Richardson, Addison, Dallas and the surrounding areas and specializes in companies which lease or buy office and warehouse properties.

Categories: Uncategorized

West End SubLease

Post By : admin 17 July 2017 Leave a comment

Please view our beautiful new sublease listing in the West End of Dallas, Texas.

Sublet Flyer

Bob Gibbons is a Real Estate Advisor & Tenant Advocate with REATA Commercial Realty, Inc. which is a tenant advisory firm based in Plano, Texas. Bob serves companies in Plano, Frisco, McKinney, Allen, Richardson, Addison, Dallas and the surrounding areas and specializes in companies which lease or buy office and warehouse properties.

Categories: Uncategorized

Office Utilization Far Less Than Expected

Post By : admin 12 January 2017 Leave a comment

Bisnow.com had an article on their website today which started by citing a study by the Harvard Business Review (HBR). It said that “office utilization peaks at 42% on any day, forcing an overhaul of how efficient spaces are designed.” The article goes on to talk about how this is changing the way offices and office campuses are being designed.

But what caught my attention was the 42% utilization. They don’t define what that means exactly so we are left to make our own assumptions. It makes me think that only 42% of the space is being used at any given time, or that only 42% of the people the office was built to accommodate are actually there. I’m not really sure, but either way, it sounds like office spaces are not being used to their full capacity.

This is consistent with something I heard at a lunch presentation today by Robert Jimenez of Granite Properties. Robert told a group of commercial real estate professionals that they are building 3.7 parking space for every 1,000 square feet (SF) in their suburban office buildings. But their own study of Granite Park in Plano shows that only 2.2 parking spaces per 1,000 SF are actually occupied on average. This would seem to support the HBR findings.

The takeaway for me is that landlords can allow much greater density in their buildings than previously thought and tenants could lease much less space for the same number of people. Perhaps it would be feasible to lease only 10,000 SF for 75 people instead of the 15-18,000 SF as previously thought. Of course, this will depend on the corporate culture, how many people get private offices, and, most importantly, whether the landlord can be convinced to allow this.

For creative ways to solve office space needs, please find us at www.texastenantrep.com.

Bob Gibbons is a Real Estate Advisor & Tenant Advocate with REATA Commercial Realty, Inc. which is a tenant advisory firm based in Plano, Texas. Bob serves companies in Plano, Frisco, McKinney, Allen, Richardson, Addison, Dallas and the surrounding areas and specializes in companies which lease or buy office and warehouse properties.

Categories: Uncategorized