Measuring commercial space

[Kevin J. Bowman]

Here's something I had not thought about; I have a warehouse that has a small area of office space in the corner; ABOVE the office is loft space about 8.5 feet high. Of course, it does not have the same utility as the 18' foot high warehouse space, but they ARE using the loft area for storage. My first inclination is not to count it as part of the warehouse sace or any other space, but I am open to other views on this. Thanks.

 

[PropertyEconomics]

Separate it out ...

X Square Feet Warehouse
X Square Feet Office
X Square Feet Mezzanine (Loft)

Reporting what is there cannot get you in trouble, and frankly, I find that many warehouse type properties have this exact configuration as it represents a very high degree of space utilization ... it would be interesting to know what your confirmation of your comparables might tell you. Then its just a matter of how you measure lease rates and application in the same manner for your subject.

Good luck.

 

[hastalavista]

How much space are we talking here?

Sounds it just sounds like loft area used as ancillary storage. I would not count it as part of the full-utility warehouse space. I'd count it as loft or office-loft storage.

 

[Michigan CG]

Separate it out ...

X Square Feet Warehouse
X Square Feet Office
X Square Feet Mezzanine (Loft)

Reporting what is there cannot get you in trouble, and frankly, I find that many warehouse type properties have this exact configuration as it represents a very high degree of space utilization ... it would be interesting to know what your confirmation of your comparables might tell you. Then its just a matter of how you measure lease rates and application in the same manner for your subject.

Good luck.

I agree with what he says.

 

[Jerry Lieb]

I do it exactly the way Property Economics does it - and have been form 25+ years. It makes sense.

Jerry Lieb, ASA

 

[Brian Weaver]

I do it exactly the way Property Economics does it - and have been form 25+ years. It makes sense.

Jerry Lieb, ASA

That's how I did it as well. The difficulty came when owners installed illegal apartments or sleeping rooms (in larger buildings). Owners who either lived far from their companies or just wanted a place to crash during the day. Some had "family" rooms to warehouse their children while they worked. Some were nicer than my house.

 

[Kevin J. Bowman]

It is very minor-about 150 SF

 

[The Warrior Monk]

One has to know the local regulations to answer this question properly. For example, additional storage space can affect other aspects of the property (parking requirements, health department regs, etc.).

 

[Caligirl]

Separate it out ...

X Square Feet Warehouse
X Square Feet Office
X Square Feet Mezzanine (Loft)

Reporting what is there cannot get you in trouble, and frankly, I find that many warehouse type properties have this exact configuration as it represents a very high degree of space utilization ... it would be interesting to know what your confirmation of your comparables might tell you. Then its just a matter of how you measure lease rates and application in the same manner for your subject. Good luck.

Ditto. Mezzanine/loft space in my market leases for less than warehouse/office but adds to the overall value of the lease.

It is very minor-about 150 SF

It is 150 SF of add'l storage space. The other comps will tell you if it adds to the overall value.

 

[ETex2]

As others have said, you need to measure and talk about this space in the appraisal. Whether or not it is treated as rentable square footage, or area that you would add into the sales comparison analysis, depends on your local market, and how buyers, sellers, lessors and lesees typically treat the space.