BOMA questions - asking for advice

[analyst]

Can you help me guys, i'm having trouble with using Common Floor & Building R/U ratios for tenants in Mixed-Use commercial properties (Office/Retail).

First - is it normal practice to apply the same R/U ratio in Mixed-Use Structures to both Retail and Office premises in one building or we can calculate R/U for Retail and Office separately? Is it just Store Area? I'm asking because of why retail-tenants must to pay for common areas on top-floors, like public conference hall or fire tambours at all floors?

Second - during lease-up, floors with high R/U ratios are more difficult to lease. So, is there any reasons to use single R/U Ratio that can be applied to all floors of the building? Is there any practice of using single R/U in Mixed-Use Structures in your city?

Thanks in advance.

[abarrette]

First - is it normal practice to apply the same R/U ratio in Mixed-Use Structures to both Retail and Office premises in one building or we can calculate R/U for Retail and Office separately? Is it just Store Area? I'm asking because of why retail-tenants must to pay for common areas on top-floors, like public conference hall or fire tambours at all floors?

It is normal (here - midwest USA) to apply the same R/U to all suites of a floor when utlizing BOMA to it's fullest extent. If used correctly the Retail spaces pay a premium for their frontage (thus including the street facing walls) and the common floor space for their floor and the build common floor space for their heat, water, electricity, etc. So they wouldn't be paying for the public conference hall, but they would pay for the boiler room and the building electrical room, the telecom room on their floor, etc.)


Second - during lease-up, floors with high R/U ratios are more difficult to lease. So, is there any reasons to use single R/U Ratio that can be applied to all floors of the building? Is there any practice of using single R/U in Mixed-Use Structures in your city?

I have seen cases where an average R/U has been applied to all suites of a building regardless of use. Generally there is a market R/U that is reported and the rent is an inverse ratio applied to that and the actual R/U. It breaks down to the same money but distributed across the building. This is not BOMA however. It is based on BOMA but it needs to be clear that it isn't BOMA. I find the BOMA standard for Measurement to be an excellent check for design efficiency based on floor use.