To begin with, what is a building loss factor?

A building loss factor is the percentage of usable area lost in a building due to architectural, mechanical, electrical and structural features. It is the part of the usable space occupied by columns and convection units or created by awkward corners or projections, which precludes the placement of furniture or the functional use of the usable floor area. It can be seen within the built environment, where plants mask awkward corners, or in oversized corridors that result due to an inefficient structural grid. Once the lost usable area is deducted from the floor usable area, the resulting space is considered functional area.

Facility managers learn which of their buildings is the most efficient, however it is possible and advisable to accurately quantify/calculate the exact efficiency (building loss factor) of each floor plate and building within your facility portfolio and the resulting functional area.

Every building has a fraction of its space which is lost. In some buildings it may only be 2 percent, while in other buildings it could be up to 20 percent. From an economic perspective this is something to be attentive to, whether you are:

  • wishing to develop a highly efficient building

  • assessing building attributes during an acquisition process

  • assessing lease opportunities

  • wanting to compare the area efficiencies of your portfolio of assets

  • commencing an interior alteration project

Building area loss contributes to the true value of a real estate asset and should be understood for each new or existing building within your organization’s portfolio. It is the direct comparison of space efficiency, available functional area, and the ratios of rentable to usable to functional area that can be calculated on a cost per square foot basis.

The reality is, no two buildings are created equal. The better FMs understand the attributes and functional area of their portfolio, the better and more effectively they can plan how best to use their real estate assets. Some of the building elements that are considered in the building loss analysis are:

  • depth of perimeter convection unit

  • window opening dimensions and position

  • ceiling configurations, grid dimensions and level changes

  • structural building grid dimension and regularity

  • building core to the exterior wall dimensions

  • column dimensions, spacing and location

  • size and locations of vertical penetrations (i.e.; elevators, shafts or rainwater leaders)

  • size and locations of exit stairs

  • size and configuration of common areas

The process of conducting a building loss analysis accounts for all of the above features through a series of calculations and assessments. It determines the percentage of lost area and the ultimate usable area that can be put to functional use.

The better you understand your buildings, the better you can manage them, and the more they can contribute to your organization’s functional and financial performance.

An FM consultant, versed in building loss factor analysis, can help you gain a more thorough understanding of your assets.