Commercial Investment Real Estate is the magazine of the CCIM Institute, the leading provider of commercial real estate education. CIRE covers market trends, current developments, and business strategies within the commercial real estate field.
Issue link: http://cire.epubxp.com/i/504576
40 May | June | 2015 matically. For example, in some parts of the world, it is an established practice to include common space, such as elevator shaf s and communal hallways, in f oor area measurements; in other markets, of -site parking or even swimming pools might be included. So many dif erent methods of measurement in use makes it dif cult for tenants, landlords, investors, and developers to accurately compare space. Research shows that a property's f oor area can deviate by as much as 24 percent depending on the method used, according to global property f rm JLL. Aside from the obvious confusion this can bring for tenants and buyers, there are some very signif cant and damaging implications for business and for wider econo- mies that rely on consistent property data for f nancial reporting purposes. For example, the lack of consistency in property measurement data helps undermine achiev- ing greater transparency through existing international standards such as International Valuation Standards and International Financial Reporting Standards. And for businesses and f nancial markets, the existing incon- sistencies negatively af ect f nancial reporting, which requires businesses to document their total assets, including property. Implementing Change T e International Property Measurement Stan- dards Coalition is an international group of more than 60 professional and not-for- prof t organizations, including the Building Owners and Managers Association International, CoreNet Global, the Real Property Association of Canada, and the Institute of Real Estate Management, working together to develop and embed a single property measurement standard in the industry. T e Royal Institution of Chartered Sur- veyors — an international organization that promotes and enforces the highest professional qualif cations and standards in the development and management of land, real estate, property, and construction — was among the founding members of this coalition. T e International Property Measurement Standard will ensure that property assets are measured in a con- sistent way, creating a more transparent marketplace, greater public trust, stronger investor conf dence, and increased market stability. IPMS is a new, principles-based, international stan- dard that sets out how to measure property assets. It means that for the f rst time, property will be measured in a consistent way around the world. IPMS does not def ne the units of measurement such as feet and meters, but instead it def nes what is included in the measure- ment of property f oor space. T e f rst phase of IPMS, announced last November, applies only to of ce space. Future standards on measurement of other asset types are planned over the next few years. IPMS in Action IPMS will become established over time throughout the global marketplace as property users come to understand the benef ts of using a common method for measuring property assets. In some markets, it is probable that exist- ing standards will remain in place and may at f rst be ABOUT RICS The Royal Institution of Chartered Surveyors promotes and enforces the highest professional qualifi cations and standards in the development and management of land, real estate, property, and construction. RICS accredits 118,000 professionals and any individual or fi rm registered with RICS is subject to its quality assurance. Member expertise covers valuation and management across all asset classes as well as construction, infrastructure development, and the management of natural resources, such as mining, farms, and land. In the Americas, RICS has staff in New York; Washington, D.C.; Los Angeles; Toronto; São Paulo, Brazil; and Barbados. Previous Page: L_amica/Veer; Hieng Ling Tie/Veer This Page: Kone/Veer