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Help - commercial condo GLA

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hambone

Thread Starter
Sophomore Member
Joined
Jun 12, 2008
Professional Status
Certified Residential Appraiser
State
Arkansas
Hey all -

I'm in the process of purchasing a new small office condo for my business. The offer has been accepted; however, we are not coming to terms on the price yet. On the advice of my Realtor, we wrote the contract base upon a price per foot since my measured square footage was different than the advertised square footage.

Now, this development is zoned commercial and cannot be utilized as a residence, so here's the issue. The architect is measuring to the center line of interior walls and to the exterior of exterior walls in accordance with BOMA standards. This kinda makes sense, after all, it is an office building. However, it is also a condo.

I am a residential appraiser, so I am having difficulty accepting BOMA standards for a condo that I'm purchasing. Any advice or links or files with written documentation would be greatly appreciated since I must submit something in writing.

Certified Generals' please help.


Thanks
 

Carnivore

Elite Member
Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
hambone

I am not a CG but I do have a thought on this.

I think your saying the developer is adding 1w x 1L as opposed to .5w x 1L to extract a large amount from outside units?

Is this a significant cost/sft difference? How much are we talking about?

What does the developer say?

Not picking on AK, but your not exactly Manhattan. Just curious.
 

Kevin A. Spellman

Senior Member
Joined
Aug 30, 2003
Professional Status
Certified Residential Appraiser
State
Massachusetts
Typically it is to the plane of the interior wall, typically to the backside of the 1/2" drywall. You are not allowed to touch the frame. The frame is a common element.

I have an office condo, but it is rented. The tenant maintains the unit. I have an office above my garage attached to my home. Make sure you have access to high speed Internet and test your cell phone. My unit is next to an access to the back of the complex and there is road dust, just replaced the windows to prevent the road dust from entering the unit, the complex was built in the early 1980s with inexpensive finishes.
 

PropertyEconomics

Elite Member
Joined
Jun 19, 2007
Professional Status
Certified General Appraiser
State
New Mexico
Boma would apply in standard office construction, however, for condo developments, it would be my contention that the exterior walls are common elements so I would take the interior measurments, and as Spellman said above Id add 5/8" to the front and rear wall and to the two side walls to accomodate the drywall in order to calculate the condo square footage.
One other means would be to look at the condo documents, as they shoud spell out the condo unit sizes, although that may in fact be the Boma measurements they are citing to you.
Surely there cannot be such difference as to halt the purchase ... can there?
 

hambone

Thread Starter
Sophomore Member
Joined
Jun 12, 2008
Professional Status
Certified Residential Appraiser
State
Arkansas
Thanks for the quick responses.

Two of the walls are finished Sheetrock; whereas, the two exterior walls are concrete block.

It's a 11% difference in price a square footage, and I'm also looking at resale in the future. I mean, as an appraiser, I really couldn't advertise the higher square footage. The exterior walls are very thick, I think near 1', so this is making a significant difference since the office is only 576 SF or 648 SF.

Not sure if it exist, but does anyone have any documentation?
 

Howard Klahr

Senior Member
Joined
Oct 4, 2004
Professional Status
Certified General Appraiser
State
Florida
Boma would apply in standard office construction, however, for condo developments, it would be my contention that the exterior walls are common elements so I would take the interior measurments, and as Spellman said above Id add 5/8" to the front and rear wall and to the two side walls to accomodate the drywall in order to calculate the condo square footage.

Not to be disrespectful, but your contention is not relevant. As is with all condominium projects, the declaration of condominium rules, the size is as they state by definition. Also, what is standard among other office condo projects within the local market area. Even with regard to traditional leased office space, the BOMA standard is not even uniformly applied. What matters is what does the local market reflect.
 

Jerry Bone Jr

Senior Member
Joined
Feb 23, 2004
Professional Status
Licensed Appraiser
State
Oregon
If you are going to make an offer based on a $/SF, then... How was the SF measured in the $/SF formula ? apples to apples. OR apples to (apples+oranges)/2.
 

Paul Isolda

Senior Member
Joined
May 20, 2004
Professional Status
Certified Residential Appraiser
State
Connecticut
As is with all condominium projects, the declaration of condominium rules, the size is as they state by definition.

It may rule what brokers put on listing sheets but that does not mean much. I have seen way too many declarations list sizes that must include part of the abutting unit they are so far off. Just because the declaration says x,zzz is the size does not make it so.

I completely agree with using the same measuring standards that are accepted in that market and were used to develop the range of price per square foot. I would not go crazy over an 11% difference, it's not that big a difference.
 
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