the PCNZ Guide for Measurement of Rental Areas for Commercial Properties
the guide for measurement of rentable areas
The Guide for the Measurement of Rentable Areas is written by the Property Council of New Zealand. It provides a uniform and impartial method of measuring floor space for commercial, industrial and retail premises; acceptable to all those in the provision and utilisation of space.
It is recommended by Property Council New Zealand that this guide be referred to in lease documents and the relevant method applied should be specified. All buildings are different and each has its own unique set of conditions, thus calculating the rentable area of a tenancy can be difficult.
While the Property Council’s guidelines do an excellent job of defining the criteria for calculating areas, it would be impossible to cover all eventualities that can arise in the built world. This is where the experience and knowledge from an experienced surveyor becomes critical to interpret each scenario.
HOW TO GET AN ACCURATE RENTABLE AREA SURVEY?
The Realserve team has been at the forefront of producing Rentable Area Surveys for nearly 20 years and are renowned in the property industry as the foremost experts rentable area determinations. With many thousands of rentable area surveys completed in the property industry we have an extensive knowledge base to draw upon to ensure the rentable area derived for a property is fair and just to all parties concerned.
Realserve is committed to fostering education and precision across the industry and have proudly supported the Property Council of New Zealand.
COMMON QUESTIONS ABOUT THE GUIDE TO MEASUREMENT OF RENTABLE AREAS
- What is the retable area of a two level commercial building when there is a single tenant occupying the whole building?
Refer to the Method of measurement 1 paragraphs in the PCNZ Guide, the total Rentable area of a building is the sum of all rentable areas. Clause 1.3 notes toilets are included and if identified separately should be in accordance with Clause 1.2.3 and disregard all fixtures and other protrusions. It Clause 1.3.4 is noteworthy for the avoidance of doubt of a single tenant in a building.
- In the PCNZ Method of Measurement, is the foyer area of a commercial building that is leased to one tenant included in the whole floor rentable area when calculating the rent?
Areas set aside as public space of thoroughfares are excluded in Clause 1.4. Where it is noted the ground floor entrance lobby in Method one does not form part of the rentable area. It is best to have this be agreed by both parties at the negotiation stage.
- Is a lift included in the Method 4 calculation?
Method of measurement 4 is for industrial type buildings. Clause 4.7 notes that it is the intention that office areas, stairs and all other use and facilities within the buildings shall be included in the measurement of Rentable Areas.
Excluded from rentable area calculations, would be large voids over an office entry foyer
- Who is the Property Council of New Zealand?
The PCNZ is a not-for-profit organisation that connects over 10,000 property professionals, championing the interests of over 570 member companies who have a collective $50 billion investment in New Zealand property. The membership is broad and includes some of the largest commercial and residential property owners and developers in New Zealand. The Property Council acts as a collective voice with policy makers ensuring they make informed decisions that benefit the industry whilst enabling a strong economy.