The way property assets are currently measured varies widely from country to country. Even within the same country there are many differing approaches. With so many different methods of measurement available, it makes it difficult to those looking to invest in real property to make comparisons. This confusion can affect property values and lead to errors in financial reporting, and consequently, undermine market confidence and economic stability.
Wouldn’t it be nice if real estate professionals had a clear understanding of building size no matter what type of real estate or where it was located worldwide? This is the goal of the International Property Measurement Standards Coalition.
This initiative was originally launched at a meeting hosted by the World Bank in 2013 and has been lead through a coalition over 82 real property organizations from all parts of the globe including SIOR, the Royal Institute of Chartered Surveyors, BOMA, and CLGE. These organizations have joined together to administer the creation and implementation of internationally recognized property measurement standards.
The first step of the Standard’s Coalition was the formation of an independent Standards Setting Committee “SSC.” The SSC is made up of eighteen experts working to ensure that the International Property Measurement Standard (IPMS) is appropriate for all world markets. These individuals have experience in over 47 markets and numerous sectors and asset classes. To date standards for measuring office and residential properties are complete and can be found at www.ipmsc.org. The latest document they are working on is the consultation document for industrial buildings.
SIOR is a Trustee of the Coalition and, as such, we have a responsibility to assist the Coalition’s work. We are expected to help in two ways. This first, as experts in office and industrial real estate, is to provide input on the office and industrial measurement standards. The second is to promote implementation of these standards by our clients.
Given that is the case, and as the SIOR representative on the coalition, I would like to request that all our industrial specialists review the Industrial Buildings consultation document and provide feedback and comments.
The process as well as the document can be viewed online at https://ipmsc.org/consultation/
Our involvement in the process will broaden our own knowledge base and, more importantly, will increase our credibility and exposure worldwide. Anyone that has questions or comments is invited to contact the author.
Phil Nanavati, SIOR
Vice President, Leasing and Property Management, Fengate Capital Management
Oakville, ON Canada