TL;DR: The Asset Manager’s Guide to Revenue
- The Opportunity: The new BOMA 2024 Office Standard allows you to monetize previously “free” spaces like balconies, patios, and rooftop terraces.
- The Shift: Unenclosed Tenant Areas are now included in Rentable Area calculations. For a tenant with a private terrace, this can add thousands to the lease value.
- The Strategy: Choosing between Method A (Legacy) and Method B (Single Load Factor) is a critical leasing decision for your 2026 portfolio strategy.
- The Tech: Manual measurement fails to capture irregular “Dominant Portions” of glass. 3D laser scanning is the only way to audit-proof your new square footage.
- The ROI: Remeasuring a building typically uncovers 2% to 5% more rentable space, directly increasing Net Operating Income (NOI) and asset valuation.
What if you could increase your building’s valuation by $500,000 without laying a single brick?
Table of Contents
The New Revenue Mandate: BOMA 2024
As of March 2024, the rules of the game have changed. The release of the BOMA 2024 Office Standard (ANSI/BOMA Z65.1-2024) fundamentally alters what you are legally allowed to charge rent for. Unlike previous technical updates, this standard aggressively targets the “amenitized” workplace, allowing landlords to monetize spaces that were previously given away for free.
If you are planning your 2026 leasing strategy for assets in Toronto, Vancouver, or New York, relying on BOMA 2017 numbers is a conscious decision to leave revenue on the table.
The Revenue Shift: “Free” Amenities Are Now Rentable
The headline feature of the 2024 Standard is the inclusion of outdoor spaces.
Under BOMA 2017, a beautiful 500 sq. ft. private balcony attached to a corner suite was often classified as a “building amenity” or excluded entirely. You couldn’t charge rent on it. It was a perk.
BOMA 2024 changes the math. It introduces the concept of Qualifying Unenclosed Areas.
1. Unenclosed Tenant Areas (Balconies & Rooftops)
If a tenant has exclusive use of an outdoor space, like a private balcony, a finished rooftop terrace, or a covered gallery, that space is now calculated as Rentable Area.
- The Financial Impact: Imagine a tenant paying $60/sq. ft. for their interior office space. If you can legally add their 500 sq. ft. balcony to the lease, you just generated $30,000 in annual incremental revenue. Over a 10-year term, that is $300,000 in pure value from existing concrete.
2. At-Grade Unenclosed Areas (Patios)
For the first time, ground-floor patios and courtyards can be included in the Rentable Area if they are finished (paved/decked) and protected for tenant use.
- Asset Strategy: This incentivizes owners to upgrade “dead” grass zones into paved patios. The construction cost is often recovered in the first year of rent.
Key Term: Non-Allocated Tenant Areas (NATA) BOMA 2024 introduces NATA to ensure fairness. If one tenant has a massive private balcony, it is measured as NATA. They pay for it, but it does not inflate the Load Factor for other tenants on the floor. This keeps your leasing competitive while maximizing revenue from premium suites.
Life Science & The “Vertical” Opportunity
The commercial market is seeing a boom in life science office buildings. These facilities require massive amounts of vertical infrastructure—fume hoods, exhaust ducts, and plumbing risers.
Under old standards, these vertical shafts were often deducted as “Major Vertical Penetrations” (rent-free exclusions). BOMA 2024 clarifies that single tenant shafts, vertical penetrations serving only one tenant, are Rentable Area.
The Financial Impact: Tracking a 20 sq. ft. shaft through 15 floors requires precise alignment. Across multiple floors, misclassifying these shafts can quietly remove tens of thousands of dollars from your annual rent roll. If the shaft shifts by 6 inches on the 10th floor, you need to know.
Method A vs. Method B: The 2026 Strategy Decision
A critical part of your asset strategy is choosing the right calculation method. BOMA 2024 refines the two dominant paths.
Method A (The Legacy Method)
- Logic: Calculates Rentable Area based on proximity. Tenants pay for the hallway directly outside their suite.
- Result: Load Factor varies by floor. A tenant on an inefficient multi-tenant floor pays a higher load factor than a tenant on a full floor.
- Best For: Owner-occupied buildings or assets where fairness between departments is key
Method B (Single Load Factor Method)
- Logic: Pools all base building circulation and amenities together and distributes them equally across the entire building.
- Result: Every tenant pays the same Load Factor (e.g., 1.15).
- The 2024 Update: Method B now has simplified rules for defining circulation paths, making it easier to apply to complex office buildings.
- Best For: Portfolios preparing for sale. It presents a clean, uniform number to prospective buyers and tenants.
Finding “Phantom” Square Footage with LiDAR
Why do most buildings grow by 2% to 5% when remeasured? It’s not just the new rules; it’s the technology.
Most existing buildings are leased based on architectural drawings that assume walls are straight and columns are square. Real construction is never perfect. 3D Laser Scanning (LiDAR) captures the as-is conditions with millimeter accuracy, revealing “Phantom Square Footage” that manual surveys miss.
3 Findings of “Phantom” Square Footage with LiDAR
- Wall Thickness: Modern glass partitions are thinner than the 5-inch drywall assumed in 1990s plans. Scanning captures the true interior gross area.
- Dominant Portion: BOMA rules state you measure to the “Dominant Portion” of the wall (usually the glass). If a glass facade is slanted or curved, manual tools fail to calculate the true area. LiDAR creates a mathematical model of the curve, claiming every available inch.
- Column Footprints: Old plans often overestimate the size of structural columns. Scanning reveals their true, often smaller, enclosure size, returning that space to the Tenant Usable Area.
FAQ: Navigating the BOMA 2024 Update
Is BOMA 2024 mandatory?
No, but choosing not to adopt BOMA 2024 is a conscious decision to under-rent your asset compared to competitors. If your neighbors are monetizing their balconies and you aren’t, your Net Operating Income (NOI) will lag the market.
What is the difference between Rentable and Usable Area?
Usable Area is the actual space the tenant occupies (carpet to carpet). Rentable Area includes their share of the common areas (lobbies, hallways, bathrooms). The ratio between them is the Load Factor. BOMA 2024 optimizes this ratio to maximize the billable square footage.
Does this apply to Industrial Buildings?
No. This standard is specifically for Office Buildings. Industrial assets should look to the BOMA Industrial Standard (BOMA 2019/2025), which focuses on different metrics like clear height and cubic volume.
How much does a laser scan cost?
Compared to the revenue gain, the cost is negligible. Scanning a 100,000 sq. ft. building costs roughly $10,000 – $15,000. If that scan finds just 1,000 sq. ft. of new rentable space at $40/sq. ft., the ROI is achieved in the first 3 months of the new lease.
Conclusion: Don’t Let Your 2026 Leases Expire on 2017 Data
The commercial real estate market is unforgiving. As building owners face pressure to increase valuations, BOMA 2024 offers a clear path to generating NOI without capital expenditure.
By combining the new “Outdoor Amenity” rules with the precision of 3D laser scanning, you can certify a larger, more profitable building.
Ready to audit your portfolio? Contact iScano’s BOMA Team to uncover the hidden revenue in your assets.
References
- BOMA International. (2024). BOMA 2024 for Office Buildings: Standard Methods of Measurement (ANSI/BOMA Z65.1-2024).
- Gensler. (2024). BOMA 2024 Office Standard Updates: 5 Key Changes.
- Building Engines. (2024). BOMA 2024 Office Standard Updates.
- iScano. (2025). 3D Scanning vs Traditional Surveying: Complete Comparison Guide.
- Rise Realty. (2024). Unlocking New Opportunities: Key Updates in BOMA 2024 for Office Buildings.
