Just Measure for Commercial

[Workbox]

I was called by a Pizzeria restaurant owner to check the sq. footage of his rental building. He wants confirmation to the Sq. Footage. I told him that I could measure it, but that I only do Residential, but would have to double check if their are any special requirements to measuring commercial. He kept mention that it needed to be "certified". I kinda have a feeling that litigation maybe around the corner. How should I handle this guys?

 

[Michigan CG]

There are different measurements in commercial properties which include:

Gross building area,
Rentable area, which is smaller than GBA,
Usable area, which is smaller than rentable.

Find out what you are measuring. You might want to see the lease as the definitions are different in various properties and with different landlords. Gross area might only include interior space on a property.

Some cleverly written leases might even include the pro-rata share of the common areas.

 

[Jerry Lieb]

I would definitely ask why he needs the measurements. My guess is that it might be to dispute the lease square footage.

I would think that the lessor and lessee could work out any discrepancies without having to resort to legal action - but who knows? If legal action is a possibility, you need to decide if you want to get involved. If you do, measure, then measure again. Make a good, readable sketch.

As mentioned in a previous reply, make sure there is an understanding as to exactly what he wants measured...and if he wants it in inches or decimals....or both.

I would have a simple Letter of Engagement stipulating everything, and the intended use of your drawing - signed by your Client.

You are not stating a value, so this isn't an appraisal.

Good luck.

 

[Lost Cause]

I've seen plenty of leases where the space defined in the lease had little relationship with the physical reality of the space. Typically the space noted in the lease is bigger than the the actual area. I've seen many buildings where the lease-defined Net Rentable Area is larger than the measured Gross Building Area. Many of these leases will have disclaimer language that notes a possible discrepancy and holds the landlord not responsible for an accurate measurement. Well-written leases (from a property owner's perspective) will never mention anything about the actual size of the space nor rent on a per SF basis to avoid these kind of disputes.

If your potential client is disputing the size of his space, it would be wise to check the lease for any disclaimers regarding this. He may not have a leg to stand on.

 

[Workbox]

I've seen plenty of leases where the space defined in the lease had little relationship with the physical reality of the space. Typically the space noted in the lease is bigger than the the actual area. I've seen many buildings where the lease-defined Net Rentable Area is larger than the measured Gross Building Area. Many of these leases will have disclaimer language that notes a possible discrepancy and holds the landlord not responsible for an accurate measurement. Well-written leases (from a property owner's perspective) will never mention anything about the actual size of the space nor rent on a per SF basis to avoid these kind of disputes.

If your potential client is disputing the size of his space, it would be wise to check the lease for any disclaimers regarding this. He may not have a leg to stand on.

I think he should have a lawyer look at it. Because it is a dispute. I feel that I have to tread lightly and figure out the SOW on this.

 

[PropertyEconomics]

I was called by a Pizzeria restaurant owner to check the sq. footage of his rental building. He wants confirmation to the Sq. Footage. I told him that I could measure it, but that I only do Residential, but would have to double check if their are any special requirements to measuring commercial. He kept mention that it needed to be "certified". I kinda have a feeling that litigation maybe around the corner. How should I handle this guys?

Even though not an appraisal, with possible litigation at hand, I would not touch this as a residential appraiser. If you get called into the fray on the stand, you will not be treated kindly and your experience will not allow you to converse confidently against their arguments.

 

[Dave Curry]

I don't see why anything more than the defined scope of work should matter. I took an assignment to measure a condominium to challenge a developers square footage. I explained to the buyer that I would not "Certify" his ownership rights, only that I would measure the square footage as he was defining he wanted. I defined all of this in the scope of work. Now I went above and beyond and looked into Ansi Standards (don't have a standard for HPR, but refers you to the deed) and I reveiwed the deed restrictions. Something you cannot do withough commercial experience that I did in my report to the client, is I explained what my "Piers" define as heated square footage. You wouldn't know that on commercial property if you don't have experience in the market.

 

[AnonApprsr]

Well, you could always tell him that you can't measure his property as an appraiser, but you can measure his property as a normal civilian. If you take off your appraiser hat, than you'll be ok!

 

[Mountain Man]

I don't understand what's wrong with just measuring the dam thing, giving him a gross building area, and collecting $$ for a 15 minute job.

 

[Boonders]

I don't see why anything more than the defined scope of work should matter. I took an assignment to measure a condominium to challenge a developers square footage. I explained to the buyer that I would not "Certify" his ownership rights, only that I would measure the square footage as he was defining he wanted. I defined all of this in the scope of work. Now I went above and beyond and looked into Ansi Standards (don't have a standard for HPR, but refers you to the deed) and I reveiwed the deed restrictions. Something you cannot do withough commercial experience that I did in my report to the client, is I explained what my "Piers" define as heated square footage. You wouldn't know that on commercial property if you don't have experience in the market.

Any hopefully we didn't write "Piers" in our report...