In leasing commercial property, the square footage of the space is a crucial factor that can greatly impact your costs and overall experience. The importance of confirming square footage before signing a lease cannot be overstated. Verifying the square footage before signing a lease is essential to ensure you’re getting exactly what you’re paying for. In this blog post, we’ll explore the methods for measuring space, common discrepancies that can arise, and the cost implications of inaccurate square footage.
Why Verifying Square Footage Matters
Square footage is often the basis for determining the rent you’ll pay in a commercial lease. The importance of confirming square footage before signing a lease lies in avoiding potential financial pitfalls and ensuring the space meets your business needs. Any inaccuracies in the reported size of the space can lead to overpayment or underutilization of the area. By confirming the square footage before signing a lease, you can avoid potential disputes with the landlord and ensure the space meets your business needs.
Methods for Measuring Space
Several methods can be used to measure the square footage of a commercial property. The most common include:
- BOMA Standards: The Building Owners and Managers Association (BOMA) provides industry-standard methods for measuring commercial spaces. BOMA standards take into account factors like common areas and interior walls, offering a comprehensive measurement.
- ANSI Standards: The American National Standards Institute (ANSI) also offers guidelines for measuring square footage. ANSI standards are often used in residential real estate but can be applied to commercial properties as well.
- Professional Appraisals: Hiring a professional appraiser or surveyor is another reliable way to measure square footage. These experts use precise tools and methodologies to ensure accurate measurements.
Common Discrepancies in Square Footage
Discrepancies in square footage can occur for various reasons. Landlords may inflate the property’s size by including unusable areas like walls or columns and common spaces such as lobbies and restrooms in the rentable square footage.
It’s also important to distinguish between usable square footage (the actual space within the walls of the leased area) and rentable square footage (which includes a proportionate share of common areas). Understanding these terms can help you better evaluate the true size and value of the property.
Cost Implications of Inaccurate Square Footage
If the square footage is misreported, it can have significant cost implications. For example, if the space is smaller than reported, you might end up paying more per square foot than you anticipated, leading to a higher overall rent. Conversely, if the space is larger than you need, you may be paying for unusable or unnecessary areas.
Square footage impacts other costs like utilities, maintenance fees, and property taxes, which are often based on property size. Confirming accurate square footage before signing a lease helps you budget effectively and avoid unexpected expenses.
Final Thoughts: Protecting Your Investment
Before signing any lease, it’s essential to confirm the square footage of the property. Taking the time to measure the space or hiring a professional to do so can save you from potential disputes and ensure you’re getting the best value for your investment.
For expert advice on leasing commercial properties and ensuring your space meets your business needs, contact the Onward Real Estate Team at Keller Williams Commercial. Our team is dedicated to helping you make informed decisions and secure the right property for your business.