This is a question many tenants and leasing consultants ask when reviewing commercial lease agreements. Rent calculations can feel complex, especially when shared spaces, common areas, and building efficiency come into play. BOMA calculations exist to remove uncertainty and establish fairness by applying standardized measurement rules that both landlords and tenants can rely on.
In commercial leasing, trust is built on transparency. When space is measured inconsistently, misunderstandings occur and disputes follow. BOMA calculations provide a common language that supports fair leasing, accurate net lettable area figures, and balanced lease negotiations.
Understanding the Role of BOMA in Commercial Leasing
To understand how BOMA calculations support fairness, it helps to understand their role in the leasing process.
What BOMA Represents in Leasing Agreements
BOMA stands for the Building Owners and Managers Association. Its measurement standards define how commercial space is measured and how shared spaces are allocated across tenants. These standards are widely accepted across the commercial real estate industry.
BOMA calculations do not exist to benefit one party over another. They exist to ensure consistency so that everyone evaluates space using the same rules.
Why Standardization Matters for Tenants
Without standardization, landlords could apply different measurement approaches from building to building. This would make it difficult for tenants to compare lease options accurately.
BOMA standards ensure that when tenants review lease offers, they are comparing spaces measured using the same methodology. This creates a fair starting point for negotiations.
How BOMA Ensures Fair Rent for Tenants
Rent fairness depends on how accurate space is measured and allocated.
Rent Is Based on Rentable Area, Not Guesswork
Commercial rent is typically calculated using a rentable area. The rentable area includes a tenant’s private usable space plus a proportionate share of shared building areas such as corridors, restrooms, and lobbies.
BOMA calculations clearly define how these shared areas are distributed. This prevents allocation and ensures tenants pay only their fair share.
Eliminating Hidden Space Costs
Without BOMA calculations, shared space allocation can be unclear. Tenants may unknowingly pay for areas that do not benefit them equally.
By following BOMA standards, shared space calculation becomes transparent. Tenants can see how their portion is determined and verify that it aligns with industry norms.
Shared Space Calculation and Transparency
Shared space is one of the most misunderstood aspects of commercial leasing.
What Counts as Shared Space
Shared spaces include common areas that all tenants use. These areas support building functionality and accessibility but are not exclusively occupied by one tenant.
BOMA calculations identify which areas qualify as shared and how they are proportionally assigned. This prevents disputes about what should or should not be included in rent calculations.
Why Proportional Allocation Is Fair
Proportional allocation ensures that tenants pay for shared spaces based on their relative occupancy. Larger tenants contribute more, while smaller tenants contribute less. This proportional approach supports fairness and aligns costs with usage and benefit.
Supporting Accurate NLA Through BOMA Calculations
Net lettable area accuracy is essential for fair lease agreements.
Why NLA Accuracy Matters
Net lettable area directly affects rent, operating expenses, and long term occupancy costs. Inaccurate NLA figures can distort lease economics and create mistrust. BOMA calculations from Boma Floor Plans provide a structured framework for determining NLA that reduces ambiguity and error.
Preventing Overstatement or Understatement
Professional application of BOMA standards prevents intentional or unintentional misrepresentation of space. This protects tenants from overpaying and landlords from undercharging. Accurate NLA supports confidence on both sides of the lease.
BOMA Calculations and Lease Negotiation
Lease negotiations are smoother when both parties rely on shared standards.
Creating a Neutral Negotiation Framework
BOMA calculations act as a neutral reference point during negotiations. Instead of debating measurement methods, parties can focus on commercial terms such as rent rates and lease duration. This saves time and reduces friction during discussions.
Strengthening Tenant Confidence
Tenants who understand how their space is measured feel more confident entering into agreements. This confidence leads to stronger relationships and higher renewal rates. BOMA standards provide clarity that supports informed decision making.
Building Trust Between Tenants and Property Managers
Trust is central to successful leasing relationships.
Transparency Builds Long Term Relationships
When property managers provide BOMA based measurements, they demonstrate transparency and professionalism. These builds trust and reduce suspicion around rent calculations. Transparent measurement practices often lead to longer tenancies and fewer disputes.
Reducing Disputes and Misunderstandings
Many lease disputes arise from misunderstandings about space allocation. BOMA calculations provide documentation that can be reviewed and referenced if questions arise. Clear documentation helps resolve issues quickly and amicably.
The Role of Leasing Consultants in Applying BOMA Standards
Leasing consultants play a key role in promoting fair leasing practices.
Advising Tenants with Confidence
Consultants who understand BOMA calculations can advise tenants more effectively. They can explain how shared spaces are allocated and how rentable area affects rent. This expertise adds value and strengthens client trust.
Supporting Fair Market Comparisons
BOMA standards allow consultants to compare properties accurately. This ensures recommendations are based on reliable data rather than assumptions. Accurate comparisons lead to better leasing outcomes.
When BOMA Calculations Are Most Valuable
Certain leasing situations highlight the importance of BOMA calculations.
Initial Lease Agreements
Before signing a lease, BOMA calculations confirm that all parties agree on space allocation. This prevents future disagreements.
Lease Renewals and Rent Reviews
During renewals, updated measurements ensure that rent adjustments reflect actual space usage and building changes.
Multi-Tenant Buildings
In buildings with multiple tenants, shared space allocation becomes more complex. BOMA calculations ensure fairness across all occupants.
Common Tenant Concerns About BOMA Calculations
Tenants may have concerns or misconceptions.
Fear of Paying for Unused Space
Some tenants worry they will pay for areas they never use. BOMA standards address this by defining shared spaces that benefit overall building functionality.
Perception That BOMA Benefits Landlords
BOMA calculations are neutral. They protect tenants by preventing inflated rentable area figures and unsupported allocations. Understanding the standards helps tenants see their value.
Long Term Benefits of BOMA Based Lease Agreements
BOMA calculations provide lasting advantages beyond lease signing.
- Clear rent structures
- Reduced conflict over space
- Improved budgeting accuracy
- Stronger tenant landlord relationships
These benefits contribute to a healthier environment.
Conclusion
By applying standardized, transparent measurement rules, BOMA calculations create a level playing field in commercial leasing. They support fair leasing practices, accurate net lettable area calculations, and balanced lease negotiations.
For tenants, leasing consultants, and property managers, BOMA standards build trust and clarity. They remove ambiguity from shared space calculation and ensure lease agreements reflect reality rather than assumptions. In an industry where precision matters, BOMA calculations are essential for fair and sustainable lease agreements. Contact us today to ensure accurate BOMA measurements and confident leasing decisions.
