Office Measurement Standards: Do You Measure Up?

New office measurement standards are set to change the way we value commercial property. On 1st January 2016, a new Professional Statement will replace the familiar Code of Measuring Practice (6th Edition). This update represents Part 1 of the “RICS Property Measurement 1st Edition.” It aims to create a consistent global standard for the measurement of offices. Later updates will cover retail, residential, and industrial property.

Understanding IPMS 1, 2, and 3

The International Property Measurement Standards (IPMS) will replace traditional terms. We will no longer primarily use Gross External Area (GEA), Gross Internal Area (GIA), and Net Internal Area (NIA). Instead, these will become IPMS 1, IPMS 2, and IPMS 3 respectively. These office measurement standards introduce several technical differences that landlords and tenants must understand:

  • IPMS 1 (formerly GEA): This remains largely comparable to the old standard. However, the new code now includes balconies and roof terraces in the total area.

  • IPMS 2 (formerly GIA): This changes how we view windows. You must now measure to the glass if the window area covers more than 50% of the wall.

  • IPMS 3 (formerly NIA): This version includes columns in the measurement. Furthermore, we now measure partitions on multi-tenanted floors to the middle of the partitioning.

Mandatory Office Measurement Standards

These new office measurement standards are mandatory for all RICS members. The industry is moving toward global transparency. By using a unified system, international investors can compare assets in London, New York, or Tokyo with ease.

Currently, it remains unclear if properties require immediate remeasuring. We are waiting for confirmation on whether these figures must align for the upcoming 2017 Rating Revaluation. However, staying ahead of these changes is vital for accurate property valuation. If you need advice on how these IPMS changes affect your current floor space, our team is ready to assist. We can help you navigate the transition to these updated office measurement standards to ensure your portfolio remains compliant.