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Benchmarking Corporate Real Estate: Fundamentals of Measurement

Author/s: Clive Warren

Date Published: 1/01/2002

Published in: Volume 8 - 2002 Issue 4 (pages 277 - 285)

Abstract

Benchmarking of corporate real estate performance is an essential tool in the efficient management of assets to support the core business. Many of the performance indicators used to measure property are based on the area of the property occupied. The disparity that exists in the methods of measuring office properties hampers the comparison of properties on a global scale. This paper explores the extent of measurement differences that exist between Australia, Europe and the UK. This paper demonstrates that differences in the methodologies applied to the measurement of office accommodation can lead to discrepancies in the range of 3% or 4% for a typical multi-tenanted office floor. This research demonstrates the need for caution in comparing benchmarks based on area and further illustrates the need for the development of a global standard for measurement.

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Keywords

Benchmarking - Margin of Error - Measurement - Net Lettable Area

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