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Two of the principal global real estate bodies, the Building Owners and Managers Association (BOMA) International and the Royal Institution of Chartered Surveyors (RICS), have signed a Memorandum of Understanding to drive the creation of International Property Measurement Standards.
The two bodies have come together to support the creation of International Property Measurement Standards to address the lack of consistency in the way property is measured, and therefore valued. Currently, measurement standards exist nationally and regionally, typically varying from market to market, hindering cross border real estate comparison.
Widespread market adoption of these new standards will provide the building blocks for well-functioning global real estate markets and will be complementary to International Financial Reporting Standards and International Valuation Standards: two layers shaping the global financial system.
Johnny Dunford, Global Commercial Property Director for RICS, said:
“Real estate is a global industry, and transparent, well-regulated markets depend on a globally consistent understanding of valuation principles. Measurement is fundamental to the valuation process and helping to advance industry-owned standards is an essential part of our public interest remit.
“BOMA International is a well-respected association across numerous markets in which we operate. We are delighted to work with them, alongside a number of other partners, to deliver a principles-based standards suite which is ultimately recognized and adopted by markets around the world.”
Joseph W. Markling, Chair of BOMA International, said:
“For the real property industry to be truly global, we need a global standard of measurement to provide a true basis for cross-border comparison, transparency and self-regulation. Since 1915, BOMA International has served as the secretariat of the property measurement standards used in the United States, and is pleased to join with RICS, the promulgator of the property measurement standard predominantly used in Great Britain, to develop a set of measurement standards for real property that will be recognized and adopted throughout the world.”
The emerging coalition, which is not restricted to BOMA International and RICS, will shortly begin the standard setting process and look to involve further partners around the world, governments, companies and academia to develop standards owned and adopted across world markets.