Colorado Real Estate Journal - September 21, 2016
There are billions of reasons to take notice. BOMA members contribute more annually to the U.S. GDP than the pharma R&D or auto industries. Through the 91 local associations in the U.S. and 17 affiliates around the world, BOMA International represents the owners and managers of all commercial properties. In the U.S., the 10.4 billion square feet of office buildings alone represented by BOMA members generated 1.8 million jobs, $227.6 billion in GDP and supported 46.6 million office workers. With a mission to advance a vibrant commercial real estate industry through advocacy, influence and knowledge, BOMA is the business partner helping its members enhance NOI and asset values. Industry Best Practices Net Higher Revenue – At least $1 per sq ft. BOMA is the recognized leader in developing high-performance programs that turn market-based best practice solutions into increased profitability. Take BOMA 360 Performance buildings as an example – they outperform the market in attracting and retaining tenants and generate higher net operating income. The numbers speak volumes: •BOMA 360 buildings achieve $1.77 more per sf in revenue, according to the BOMA Experience Exchange Report (EER) than the average building in the Kingsley Index. •BOMA 360 buildings achieve $1.04 more in revenue than the average LEED certified building. •BOMA 360 buildings receive higher tenant satisfaction scores in all 54 Kingsley quantitative rating areas including property management, leasing, maintenance, security and property features. BOMA Sets the Standard for Property Measurement – Rentable square footage increases 2-3 percent For 100 years, BOMA has set the standard for measuring commercial buildings. In 1915, it published its first ANSI-certified standard for measuring office buildings. Today, the standards have evolved to include industrial, multiunit residential, retail and mixed use, as well as gross area. By measuring a property to the BOMA standard, rentable square footage typically increases by 3 percent. BOMA Fights Against Costly Code Changes – Saving the industry more than $6 per sq ft. BOMA International is the only CRE association with a voting seat at the International Code Council (ICC) table, promoting and enforcing effective building codes. And Denver Metro BOMA was the only commercial real estate association representing commercial buildings at the table when Denver was amending the 2015 code package. Throughout the three-year development cycle of the 2015 I-Codes, BOMA’s representation was instrumental in saving the industry more than $6 per sf for existing buildings, mostly in avoided costs. Vital Industry Intelligence Increases Asset Performance – Operating cost efficiencies of 3 percent BOMA’s EER has three times more usable data than any other comparable source, providing benchmarking data on energy costs, operating expenses, taxes and more to drive a more profitable bottom line – underscoring an industry focus on maximizing building efficiency and smart asset management. Property professionals have experienced up to a 3 percent savings in operating costs as a result of increased operating efficiencies by benchmarking through the EER. BOMA Involvement Increases Your ROI – The Numbers Tell the Story Consider the impact BOMA involvement in Denver Metro BOMA and BOMA International makes on a typical 100,000-sf office building charging $20 per rentable sf with $7.50 per sf in operating expenses and a cap rate of 8: •$1 per sf gained from implementing best practices from BOMA 360 = $100,000 •2-3 percent gain in rentable square footage by correctly measuring to the BOMA standard = $50,850 •10 percent of total captured savings of $6 per sf through last building code cycle = $60,000 •3 percent efficiency in operating costs through EER benchmarking = $22,500 • Total potential property value increase of $2.9 million.