Outdoor Amenity Space Classification Under BOMA 2024
How BOMA 2024 introduces formal classification of outdoor amenity areas such as rooftop terraces, balconies, and covered patios, and their impact on rentable area calculations.
Methodology
BOMA 2024 allows outdoor amenity space to be measured and included in building rentable area at a discount factor determined by the landlord (commonly 50-75% of indoor equivalent). The space must be accessible to building occupants, maintained by the landlord, and meet minimum quality standards. Exclusive-use outdoor spaces (tenant balconies) are allocated to the specific tenant; shared outdoor spaces (rooftop terraces) are allocated as building common area.
BOMA 2017 vs 2024
This is one of the most significant changes in BOMA 2024. The 2017 standard did not formally address outdoor amenity spaces, leading to inconsistent treatment across the industry. BOMA 2024 creates a new classification for outdoor amenity space with specific measurement rules, allowing landlords to include these areas in rentable calculations at defined ratios.
Worked Example
A building has a 3,000 SF rooftop terrace and 500 SF of exclusive tenant balconies on the 10th floor. At a 60% discount factor: rooftop contributes 1,800 SF to building common area (allocated to all tenants via load factor), and the 10th-floor balcony contributes 300 SF to that tenant's usable area. Total outdoor contribution to building rentable: 2,100 SF.
Financial Impact
Outdoor amenity space inclusion can increase building rentable area by 2-8%, directly increasing every tenant's rentable area through the load factor. For a 200,000 SF building adding 5,000 SF of outdoor amenity at 60%, the building rentable increases by 3,000 SF — a 1.5% increase in all tenants' rent and CAM obligations.
Lease Implications
New leases should explicitly address whether outdoor amenity space is included in the building's rentable area calculation and at what discount factor. Existing leases that reference a specific BOMA version may need amendments to incorporate the 2024 outdoor amenity provisions.
Common Errors
- Applying indoor measurement rates (100%) to outdoor space
- Including uncovered, unimproved outdoor areas that don't meet BOMA quality standards
- Failing to disclose the discount factor used for outdoor space to tenants
- Double-counting outdoor space in both building common area and tenant usable area
Additional Context
Outdoor amenity space classification is driving significant re-measurement activity in urban office markets where rooftop terraces and balconies have become competitive differentiators. Landlords must balance the revenue benefit of including outdoor space in rentable area against tenant pushback on paying for outdoor square footage.
Related Resources
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