Skip Navigation
Postsecondary Education

NCES 2006-160
May 2006

6.5.1 Landlord-Oriented Systems

Landlord-oriented systems are designed from the viewpoint of a property owner renting space to building tenants in the commercial real estate market. They tend to be organized “from the outside in,” that is, they are sensitive to market and economic forces and to how property owners organize their charts of accounts and manage their operations. These systems reflect very little of the internal concerns of facilities managers with regard to their own end users. Some salient characteristics of the landlord-oriented systems are as follows:

  • Rentable (billable) space comprises a large number of space categories.
  • Space accounting and tracking are relatively simple for landlords but are not sensitive to internal churn (reconfiguration) rates of tenants.
  • Tenants need to analyze leases very carefully to determine exactly how billed space reconciles to physical space used exclusively by the tenant.
  • Measurements are relatively simple, but calculations of rentable area are becoming more complex as common area features and amenities increase.