What is the purpose of BOMA classifications in commercial property?

The purpose of BOMA (Building Owners and Managers Association) classifications is to classify buildings based on established standards of quality. BOMA classifications provide a systematic framework to categorize commercial properties, helping to define their quality, amenities, and overall condition. This classification can be crucial for various stakeholders in the real estate industry, including investors, property managers, and tenants, as it offers a standardized way to evaluate and compare different buildings.

By categorizing buildings into classes—such as Class A, B, or C—BOMA helps ensure that potential tenants or buyers understand the market position of a property. For instance, Class A buildings typically represent high-quality buildings with premium locations, modern amenities, and superior management, while Class B and C buildings may represent lower quality or older structures with fewer amenities. Such classifications also assist in property marketing, assuring potential occupants or buyers that they are receiving a property that meets specific quality standards.

This classification system does not directly involve setting rent prices, determining tenants’ obligations, or establishing aesthetic guidelines, although these factors might be influenced by the classification of a property. Instead, BOMA focuses on assessing and communicating the quality and standards associated with different commercial properties.