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Forum Categories General Questions & Alternative Methodologies Question

Single Storey, Single Tenant Leasing Part of Building

Mackenzie: IN Design Associates; January 16, 2020

The building is a single storey building, office space at the front, two warehouse spaces for industrial use separated by a demising wall to the back. The tenant will be occupying the office space and adjacent warehouse. The landlord will continue to use the secondary warehouse space.

The office space is less than 51% of the entire building, but we still need to confirm if it's less than 51% of the intended space to be leased. We're trying to determine which standard to use : industrial based on the office being less than 51% of the entire building, or confirming if it's 51% of the intended leasing space to use office or industrial.

I guess long story short, do we base the standard to use on the classification of the building or the space being leased?

David Fingret: Extreme Measures Inc.; January 16, 2020

Hi Mackenzie,

Generally, we base it on use. The latest BOMA 2017 Office Standard for example states:

Generally, a building whose occupancy comprises 50% or more of a particular use (e.g. Office, Industrial, Retail, or Multi-Unit Residential), should use the corresponding single-use standard. Therefore, a Building whose primary use is office with ancillary retail, parking, and storage should use this Office Standard.

Thanks,
David