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Floor-space chaos

The amount of floor area that owners of commercial properties are allowed to charge rent for depends on where the building is located. There are differing codes of practice for calculating area worldwide, although four standards dominate. At the risk of oversimplification: in the USA the estimated floor area is up to 10 percent greater than in most countries of continental Europe, but in the UK, it is up to 30 percent smaller. This chaos is likely to come to an end soon. The International Property Measurement Standards Coalition is seeking to create a uniform global standard for calculating space in office buildings, thus ensuring greater transparency. Other asset classes are set to follow. Initial results are due to be released in the second half of 2014.

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