Most people operating in the property world are familiar with the RICS Code of Measuring Practice (6th Ed) and countless legal documents across the country refer to it. But that’s all about to change because the RICS has introduced its new RICS Property Measurement (1st Ed). From 1 January 2016, RICS members will have to use the new rules when measuring offices. There are some new concepts in there – for example, Gross Internal Area is broadly replaced with “IPMS 2” and Net Internal Area with “IPMS 3”. For non-office buildings the old 6th Edition will continue to apply.
Measuring the floor area of properties is important for many different types of legal agreement. Perhaps the most significant is the agreement for lease, where the rent will be determined by multiplying the measured area by a fixed rent per square foot. It also has an impact in other contexts, for example calculating service charges in leases. A change in the measured area impacts on the amount of money that a landlord receives or a tenant pays; it goes straight to the bottom line.
What are we doing about it?
We’re amending our precedents to reflect the changes. When advising clients we’ll be asking about how they want to measure up to make sure they end up with the result that they want. Before long we’ll all be talking about IPMS 2 as though we’d never heard of GIA…