You can't monetize what you don't measure, so it's important that you know exactly how much space your tenants are using. That way, if the lease says they're paying for 1,000 square feet and they're actually using 1,200 square feet, you'll be able to use this information to renegotiate when the time comes for renewal.
The first benefit is that by updating your information, you’re putting yourself at the best advantage in negotiating leases. Even if it’s been only 5 years since the last time you did measurements for leasing, you should still do it again. We have updated technology for quickly capturing more exact measurements than in the past, using scanners instead of tape measure. Additionally, BOMA updates their standards regularly, most recently in 2017, and each update brings new clarity on what parts of your building are included in Rentable Areas. 2017 includes several areas that were previously excluded, so you stand to benefit from a new set of drawings!
You will also benefit from doing BOMA drawings again if any of your buildings or suites have undergone renovations. Reconfiguring a space results in different calculations for the various use types. It’s possible that renovations an outgoing tenant performed will result in a higher lease - take advantage when negotiating with your next tenant.
With more information to provide about your space, you can get a good tenant too. Think about it – who is a better tenant, someone who accepts that the space they’re paying for is “about 5000 square feet” versus someone who wants to know exactly what they’ll be working with? Having an up to date and accurate floor plan of their space will also give new tenants a leg up to get moved in and cash flowing faster, ensuring a stable rental income.
One last benefit to mention here is that your relationship with Uncle Sam is rock solid when you have clear and accurate information about your building’s size, and which areas bring income and which don’t. Accurate numbers have an impact on your building valuation, taxes and audit reports, and more. Use this information to build a strong case when communicating with the government.
The best part - you get all of these benefits from just a single set of drawings! A good company will provide not only the drawings with the measurements of all spaces, but also a tabular chart with all the data for your use.