Property Measurement & Practice for varying Classes of

Property Measurement & Practice for varying Classes of BuildingPresented on behalf of the ISTT on Monday 01st February 2021 by David Bally, MISTT MRICS; Chartered Valuation Surveyor

RICS Valuation -Global Standards Effective from 31 January 2020

“Where members are undertaking valuation work relating to real estate assets or liabilities, they must have regard to the International Property Measurement Standards wherever applicable.” PS 1 Section 3.5 page 14

As such, this presentation refers to the RICS Property Measurement 2nd Edition January 2018 for the measurement of Residential and Office classes of building with introductory exposure to the IPMS for Industrial & Retail Buildings

This presentation is divided into four (4) parts. The first two (2) parts deal with the RICS-adopted Standards which are mandatory and have an effective date of 01st

May 2018. The following information is to be retained in the file or in the Report;

● purpose of the measurement instruction ● date of the measurement instruction ● date of measurement ● measurement standard adopted ● if IPMS is not used, document the reason for departure ● measurement methodology adopted (e.g., laser meter

or tape measure) ● scale of any plans used ● floor area schedule with relevant areas cross-

referenced to floorplans ● unit of measurement and conversion factor, if

applicable (e.g., ft² to m²) ● name of the RICS member and/or RICS regulated firm responsible for the instruction.

The applicable Standards & the Code of Measuring Practice 6th Edition*

Comparison with COMP*

Similar to GEA

Similar to GIA

Similar to NIA

Similar to GEA

Similar to GIA

Similar to EFA

Office Buildings Residential Buildings

IPMS 1 IPMS 1

IPMS 2 IPMS 2-Residential

IPMS 3-Office -

- IPMS 3A-Residential

- IPMS 3B-Residential

- IPMS 3C-Residential

PART 1 IPMS: Office Buildings

Which basis of measurement would apply for Valuation?

Common practice before IPMS is to include the GEA in reporting. IPMS 1 replaces GEA and is defined as: The sum of the areas of each floor level of a building measured to the outer perimeter of external construction features and reported on a floor-by-floor basis.According to the PS (Section 2.2 on page 9), IPMS 3 -Office is applicable and is defined as: the floor area available on an exclusive basis to an occupier, measured and stated separately, but excluding standard facilities and shared circulation areas.

The area within window reveals.(Diagram 1 on page 12 of the PS)

• In measuring the building correctly, one must determine the Internal Dominant Face (IDF), which is defined as follows: the inside finished surface comprising more than 50% of the floor to ceiling height for each IDF wall section.

PART 2 IPMS: Residential Buildings

Which basis of measurement would apply for Valuation?

Common practice before IPMS was to use the GEA in our valuation of residential buildings.

According to the PS (Section 2.2 on page 9), IPMS 3A,3B & 3C – Residential, can each be used as a basis ofmeasurement for Valuation.

However, IPMS 3A – Residential is chosen since it is very similar to how valuers are accustomed to measuring residential buildings. It is defined as: The floor area available on an exclusive basis to an occupier.

IPMS 3A – Residential

It is the area in exclusive occupation measured as follows:

For a detached dwelling e.g., a free-standing single-family house – to the outer face of the external wall;

For an attached dwelling e.g., a townhouse – to the outer face of the external wall and to the centre-line of shared walls between occupants;

Multi-unit dwellings e.g., a condominium – to the outer face of the external wall and to the centre-line of shared walls between occupants and to the finished surface of walls shared with common facilities.

PART 3

An Introduction to:

IPMS: Industrial Buildings January 2018

Which basis of measurement would apply for Valuation?Generally speaking, GEA and GIA have been used in the valuation of industrial buildings. The IPMS Document identifies the following:

Standards: IPMS 1

Definition: The total of the areas of each floor level of a building measured to the outer perimeter of external walls, sheltered areas and balconies.

• Areas to be included but stated separately;• Balconies, • sheltered areas,

• verandas and• Mezzanines.

Standards: IPMS 2

Definition: The total of the areas of eachfloor level of a building measured to the IDFof all external walls and balconies on each Level.

• Similar to GIA;• Offices within an Industrial Building are also to be measured in accordance with IPMS 2.

Standards: IPMS 3

IPMS 3A – Industrial: The floor area available on anexclusive basis to an occupier measured from theoutside face of the external walls and any balconiesand also including sheltered areas;

IPMS 3B – Industrial: The floor area available on anexclusive basis to an occupier measured to the IDFof external walls and balconies, and otherwise tothe covered area.

The height measured from the floor to the lowest point of the structural element above, ignoring any brackets, struts or fixtures and fittings

CLEAR HEIGHT

The height measured from the floor to the lowest point of the ceiling, ignoring the existence of any brackets, struts or fixtures and fittings

INTERNAL HEIGHT

Part 4

An Introduction to:

IPMS: Retail Buildings

IPMS Standards & Uses: • IPMS 1

• IPMS 2 – Retail• IPMS 3A – Retail• IPMS 3B – Retail• IPMS 3C – Retail

• External• Internal• Occupier• Occupier• Occupier

IPMS 1 – Retail units at Ground Floor level

IPMS 1 – Retail units at Mezzanine level

IPMS 1 – Retail Shopping Mall Ground level

Loading Dock

IPMS 1 – Retail Shopping Mall First Floor level

IPMS 1 – Retail Strip Centre

Definition:IPMS 2 – Retail: The total of the areas of each floor level of a Building measured to the IDF of all External Walls and External Floor Area on each level.

IPMS 2 – Retail; similar to GIA

Standards: IPMS 3 -Retail

IPMS 3A – Retail: The area in exclusive occupation, including the Floor Area occupied by External Walls, Internal Walls and Pillars, including any External Floor Area(s), Sheltered Area(s) and Ancillary Area(s).;

IPMS 3B – Retail: The area in exclusive occupation, including the Floor Area occupied by Internal Walls and Pillars (and may include External Floor Area(s) and Ancillary Area(s)).

IPMS 3B – Retail Units Ground level Shop

Shop

Shop

Shop

Storage

Storage

Storage

Storage

Office

IPMS 3B – Retail Units Mezzanine Shop

Storage

Void

Void

Void

Void

Shop

Shop

Shop

ShopStorage

IPMS 3B – Retail Ground Level of Mall divided into exclusive use

Waste

Plantroom

Plantroom

Cargo Lift

Delivery Area

IPMS 3B – Retail Ground Level of Mall divided into exclusive use EXCERPT

IPMS 3B – Retail Ground Level of Mall divided into exclusive use - EXCERPT

IPMS 3B – Retail First Floor Level of Mall divided into exclusive use - EXCERPT

IPMS 3B – Retail Strip Centre

IPMS 3C – Retail: The area in exclusive occupation excluding the Floor Area occupied by External Walls, Internal Walls and Pillars.

Measurement practice:The area of exclusive occupancy pursuant to IPMS 3C – Retail is measured

adopting the following hierarchy to:

• the Finished Surface of shared Walls between occupants and/or

• the Shop Line (Presumed Boundary) and/or• the Internal Dominant Face for all External Walls and External Floor Areas and otherwise • to the Finished Surface.

ProposalsUniform conversion standards for measurements, dimensions and areas;

IPMS 2 for the measurement & analysis of Industrial Buildings;

IPMS 3B – Industrial for the measurement & analysis of sections of an industrial building that are exclusively occupied;

Report the Clear Height measurement in the valuation of Industrial Buildings, where applicable;

IPMS 3B – Retail for the measurement & analysis of Retail Buildings;

COMP 6th Ed. standards for the measurement & analysis of mixed-use buildings