In 2013 commercial property market transactions were estimated to be more than $1 trillion worldwide according to Real Capital Analytics, with investors and corporate occupiers increasingly operating across international borders. Despite this, many of the standards used within the industry are local market specific, making consistency and comparability a significant challenge. In view of this, FIABCI came together to launch the International Property Measurement Standard for Offices.
Historically, property has been measured differently throughout the world. According to a JLL Research, depending on the standard used, the area quoted in different markets for an equivalent building could vary by as much as 24%. These inconsistencies have led to confusion in markets, and even led businesses to develop their own costly processes for measuring and benchmarking property assets.
The work to create this new global measurement standard has been spearheaded by a Coalition of more than 50 professional organizations with consultation by a team of 18 independent industry experts.
In terms of adoption, the Dubai Government has already announced plans to make IPMS mandatory in response to a growing international investor base moving into its commercial property sector. More than 100 businesses too have signalled intentions to request or use IPMS measurements within their organizations by signing up as Partners of the IPMS initiative.