We will adopt the new International Property Measurement Standard introduced in January 2016 by the Royal Institution of Chartered Surveyors, which will future-proof the way we measure government buildings and ensure consistency across the UK and internationally.
Rt Hon. Matthew Hancock MP, UK Government Minister for the Cabinet Office
Clearly there is an immediate benefit to property users, investors and developers who work across borders, but even within a regional or local market, the ability to benchmark property measurement information consistently and on an international basis is hugely valuable
Scott McMillan, Facilities Division Chief, International Monetary Fund (IMF)
Our investment portfolio covers real estate from around the world. The many different ways of measuring space in markets may result in a lack of transparency and the distortion of true values. We would welcome a set of globally consistent and recognized property measurement standards. This common benchmark will help create market transparency and thus has the potential to facilitate global capital flow.
John Saunders, Head of Asian Real Estate, BlackRock
Vodafone occupies space for a wide range of uses all around the world. Like many other corporates we have had to develop our own means of benchmarking these property assets. I am certain that IPMS will save corporate occupiers time, money and effort across their property portfolios, and will enable us to compare space between companies far more easily than today
Bill Davidson, Global Property Director, Vodafone
The usable space within a building is a vital metric in understanding the valuation and thus investment potential of a property. Investors currently suffer from having to make decisions based on information which is inconsistent from one market to the next. IPMS will address this existing problem; removing risk and ensuring property investors are armed with reliable and transparent information.
Martin Bruehl, Head of International Investment, Union Investment
As a real estate investor and manager with a mandate covering the entire Asia Pacific region, I welcome the initiative to introduce an international property measurement standard. It is a major step in improving market transparency which will enable informed decision-making by owners, investors, occupiers and governments. I hope it will be widely embraced in the industry.
Alison Cooke, Managing Director – Real Estate, Starr International Investment Advisors (Asia) Limited
Having worked in a number of different markets around the world on behalf of occupiers the varying measuring practices do create issues and inconsistencies. It makes it difficult to compare across markets and countries on a like for like basis which does impact on the ability to make business decisions in respect of real estate. I welcome and support the efforts to create an IPMS to bring clarity and greater understanding to this area.
Chris Bennetts, Senior Manager Rew, Yahoo!
There are different measurement methods used when calculating office floor area in different countries. In Hong Kong, office floor area could be referred as “Saleable Area”, which includes the full thickness of the wall separating the units from common area; “Lettable Area”, which is the Saleable Area of an office unit plus a proportionate share of the communal facilities, or “Internal Area”, which is the area measured to the internal face of the enclosing external and/or party walls, excluding common areas.
Valuers would have to convert the floor area using the same measurement basis in order to compare like with like. A consistent property measurement standard to be used worldwide is supported.
Carmen Wong, Assistant Vice President, Office of the Chief Appraiser, Citicorp International Limited
The accurate recording of land, building and floor area measurements is fundamental to market transparency. Transparency in turn is a catalyst to the global capital flows that underpin the provision of adequate shelter, food and clothing to the world’s growing urban populations.
With the exception of language, it would not be an exaggeration to characterize global measurement protocols as the most urgent outstanding issue in the pursuit of global market transparency and performance comparability.
Steve Williams, Executive Managing Director, Real Capital Analytics, New York
Ministry of Regional Development and Public Works will continue the active dialogue with the professional community in regard to the introduction of uniform standards of measurement and evaluation of real estate properties. This would encourage investors and render the markets more transparent and comparable with each other and last but not least – would guarantee transparency and predictability of the investment process.
Lilyana Pavlova, Minister of Regional Development and Public Works, Republic of Bulgaria
It is commonly known that there are two different measurement methods used when measuring the floor area of condominiums and such, where the floor area is measured using the center line of the walls, or the floor area is measured using inside measurements between walls. There are various measurements for the height of ceilings as well
…In real estate appraisal based on an income capitalization approach, there is a fear of an accumulation of this lack of understanding for these differences leading to a large monetary error. In addition, the ambiguity in the standards is also an issue for the professional ethics of the real estate industry. It is said that there are many dealers who purposely choose measurement methods that result in large numbers when selling a property.
Nikkei Real Estate Market Report, Japan, 9 April 2013
At Malcolm Hollis it is important that we apply a set of standards to ensure a consistent measurement approach for all clients. As a trusted name in measurement we feel that the introduction of the IPMS:Offices provides this consistent basis of measurement for our clients’ portfolios and enables us to report building sizes on a like for like basis without duplication of effort. It will enable our clients to understand the size of property they are investing in regardless of location, especially if they are not familiar with the local measurement code currently used.
Tom Pugh, Associate, Malcolm Hollis LLP
As a property developer with a portfolio of property assets covering a variety of uses associated with the Club’s business in Hong Kong and Mainland China, I fully support this initiative to develop an internationally unified IPMS for measuring real estate space. I am a strong believer that a common approach to space measurement is the basis for greater reliability of comparative and benchmarking data, reporting consistency and marketplace transparency. I am looking forward to the far-reaching benefits of this initiative that would enable more informed decision-making by owners, occupiers, investors in all sectors and greater market stability.
Dr Philip YM Chen, Head of Property Development Management, The Hong Kong Jockey Club
Working with international portfolios inevitably brings real difficulties of comparison when every market has at least one different way of measuring space. It is bad enough that we do not all use the same conversion factor between square feet and square metres! I, and my peers from other major global businesses, either have to convert all space into our own individual basis of common measurement or suffer the inadequacy of comparing apples and pears – which negatively impacts on a company’s ability to make sound business decisions. I welcome an initiative that will bring portfolio-wide, global consistency to space measurement and which, for the first time, will allow the industry to benchmark good space-use practice from wherever in the world it may be.
Julian Lyon, Manager, European Real Estate, General Motors
The lack of consistent property measurement standards is a substantial barrier to development in India. As well as the standards themselves, at present the Indian market is also dealing with non-uniformity of units and definitions. For example, the commonly used measure is Sq. Ft, whereas regulations prescribe use of Sq. Mts and/or Acres as standard units of measure. Additionally, even units with the same nomenclature can imply varied measures across the country. A Bigha in Uttar Pradesh is different from a Bigha in Rajasthan. We experience inconsistency in the measurement of carpet area vis-a-vis super built-up and common areas as well as the quantum of loading & efficiency ratios.
The Indian market place would benefit substantially from the implementation of International Property Measurement Standards.
Anuj Puri, Chairman & Country Head, Jones Lang LaSalle, Mumbai, India
A globally recognised property measurement standard is important to the whole industry. In Hong Kong, there are different sets of standards for commercial space. This has caused many discrepancies in how properties are measured, requiring additional communications and outreach efforts to avoid misunderstandings and unnecessary political challenges. IPMS would help clear up misconceptions in the minds of regulators, investors, tenants, the media and the public.
George Hongchoy, FRICS, Chief Executive Officer, The Link Management Limited
The inconsistencies in the commercial Real Estate measurement standards in Brazil have been responsible for confusion in the mind of space users, developers and investors. The discrepancies as to how space is measured can only further the distortions in values and overall definition of “space”.
There is no doubt that unless there is an internationally recognized measurement standard, there can be no real internationally homogeneous standard of value.
Ramsey Trados, Westfields Consultoria Empresarial Ltda, Sao Paulo, Brazil
Personally, I believe the work of IPMS should be shared with all relevant stakeholders for the good of the real estate industry. For this reason, I’m willing to obtain consent from SIBL’s board of directors to provide the link to stakeholders in Singapore to facilitate IPMS on the consultations process on the draft standard.
Peter Chua, President of Singapore Institute of Builders
Our involvement in this initiative supports our position in raising the benchmark for unifying surveying standards in Dubai.
The efforts to unify surveying standards should benefit property owners and investors, as it will negate some of the issues and problems that can arise from differing standards used by real estate operators. It will support transparency and trust and will contribute to the convergence of global markets.
Sultan Butti Bin Mejren, director general of the Dubai Land Department
It is with honor and commitment that The Counselors of Real Estate (CRE) joins other members of the global real estate community in establishing international measurement standards which will be both recognized and accepted in property markets throughout the world. It is our hope that this important collaboration will constitute only the first of many such efforts to strengthen the integrity and transparency of our industry going forward.
Howie Gelbtuch, Chairman, Counselors of Real Estate (CRE)
Secovi is delighted to be joining the International Property Measurement Standard Coalition. Working with the coalition organisations, we are hopeful that we can develop a common international standard which will positively impact property markets worldwide.
Claudio Bernades, President, Secovi-SP
Area is the DNA of a building. Without clarity in denomination we cannot decode its true value.
Our work on IPMS is characterized by a goal to understand different approaches in real estate markets and to identify commonalities. This does not only generate more transparency to owners and tenants, but also a better and faster communication to all real estate participants. With this standard we aim to create an international norm that will enhance and improve existing national standards.
Prof. Marc Grief, German Society of Real Estate Researchers
Real estate and property investment is becoming an increasingly global business. We find investors from around the world are making cross borders investments wherever the target property provide its desired yield. I applaud the efforts by the International Property Measurement Standards Coalition in coming up with an international standards which will provide clarity, consistency and transparency in the measurement of property and hence provide consistency in the valuation of properties. This will certainly provide confidence to the investors in a long run wherever these standards are applied in the world.
Ong See Lian, Chairman of FIG Commission 10
A continued flow of Chinese capital into the global real estate market has been witnessed recently, with a particular stronger appetite for office investment opportunities in major global gateway cities. The lack of knowledge of overseas markets is certainly one of the challenges facing by Chinese investors. I am pleased to see the efforts by the IPMSC standard Setting Committee to standardize the measurement of offices across international markets, which is expected to play an important role in helping Chinese investors on their road of global expansion.
William Lu, Director, Acquisition Management, CBRE Global Investors
The introduction of a global property measurement standard will help significantly in standardising the way valuation is conducted around the world, and is a move in the right direction. Without a common standard of measurement, it is difficult for investors to compare between property investment options on the same basis, which in turn inhibits informed decision making. The adoption of a more structured approach to measuring buildings will help to address the current lack of transparency in the market, thus boosting confidence and attracting more investment into the real estate market in Asia.
Chris Fossick Managing director Singapore and South East Asia Jones Lang LaSalle
The market needs more consistent measurement of floorspace around the globe to promote transparency of pricing, valuation and analysis. As a world leader in real estate performance analysis for owners, investors, managers, lenders and occupiers, IPD enthusiastically welcomes the creation of IPMS. The implementation of IPMS will support IPD’s own programme for international data standards in measuring performance and risk on behalf of its clients.
Olivier Mege, Executive Director, IPD